Reaping Rewards with Integrated Receivables

The Ardent Mills Story

  • 82% Straight Through
  • 3X Faster Cash Posting
  • +90% Past Due Reduction
  • 50% Headcount Reduction & Faster Resolution
Cash Application Cloud
Collections Cloud
Deductions Cloud
Business Transformation Stories

Now anyone can go on a deduction in HighRadius, look at the notes history, look at the attachments, link to the backup that might be in cash apps, and anyone can look at and tell that deductions story without having to find the actual people who work there.

Marjorie Beede
Accounts Receivables Manager
Ardent Mills
Challenges
How did HighRadius help
Impact

Challenges

  • Cash Application
    • Completely Manual Processing: The cash application process,from remittance data capturing and aggregation to invoice matching and processing, was done entirely manually. This led to a slow workflow overall, and an increased risk of manual errors in their operations. Manual workloads also meant that teams working on aggregation and processing were stretched thin and were wasting effort on tasks that could be automated. Incorrect and incomplete remittance information was also a problem that had to be taken care of manually. Invoice numbers were also frequently truncated and had to be manually filled out.
    • High Lockbox Fees: The company was paying a lot of money unnecessarily into lockbox fees, which was an issue, and they wanted a way to cut down on these expenditures.
    • No Straight-Through Processing: A lack of automation meant a lack of straight-through processing for payments coming in; the team spent most of their time on this task alone. Collectors had to find and enter missing remittance data into the ERP manually, wasting time on transactional activities instead of spending time in collecting dollars.
  • Collections
    • No Standardized Strategy for Work list Prioritization: Teams did not use any form of work list prioritization for segregating customers into different aging brackets. Since they did not follow any order for follow-ups, the entire operation slowed down.
    • No Central Location for Customer Communications: A lack of centralized data meant that teams wasted time acquiring the same information over and over again. That also led to decreased visibility and a lack of accountability among employees regarding customer correspondence. A lack of standardization was also present across business units, leading to stale operations.
    • Lack of Multilingual Support: The system that they used did not cater to their customers’ needs and did not support multiple languages. This led to a disconnect between them and their customers.
  • Deductions
    • No Visibility into Dispute Volume and Patterns: With over 1600+ deductions processed per month, no streamlining, and the way data was shared and saved meant a complete lack of transparency into operations . Because of this there were discrepancies in the metrics and data they used. That was a problem because incorrect information meant faulty deductions, which led to their inability to focus and prioritize the process and a poor customer experience
    • Deduction Backup and Approvals Housed In Emails: Data was saved via email, an essential complication for correspondence, and the resolution of said claim was prolonged when searching for a piece of information.
    • Lags in ERP Migration: A backlog of data had to be updated to the recent ERP that they were migrating to.
ABOUT Ardent Mills

Ardent Mills is an industry innovator with the most extensive portfolio of traditional, specialty, and whole-grain flours and ingredients. They have operations & services supported by more than 40 flour mills & bakery-mix facilities and over 1,100
customers nationwide.

GEOGRAPHY

AMER

INDUSTRY

Food and Beverage

REVENUE

$ 524.6 Million (2019)

PRODUCTS

  • Cash Application Cloud
  • Collections Cloud
  • Deductions Cloud

The Big Picture – How Integrated Receivables Helped

Having a single source of truth and a uniform platform in integrated receivables helped Ardent Mills
in implementing

  • Easy collaboration across various teams to get more visibility into their end to end process.
  • The ability to seamlessly pivot from one method of escalation to another.
  • A better employee experience.

Using Integrated Receivables, Ardent Mills was able to:

  • Ease up their remittance aggregation process, which freed up their analysts. It also allowed collectors to post remittance information directly into the system.
  • Get deductions and cash application together with automated coding and auto allocation of reason codes for the incoming short payments.
  • Allow collectors to analyze and access payments files for real-time risk monitoring for correspondence and collections.
  • Enabling the recovery amount from invalid deductions to be added to the collectors’ work list.

How did HighRadius Help

Cash Application

  • Better Visibility into Customer Payment Behavior: With the Cash Application solution in place, the company could get insights into the mode and method that customers made payments. They could then make informed decisions and create prioritized work lists accordingly.
  • Lockbox Keying Eliminated: The use of the solution helped Ardent Mills eliminate unnecessary spending on lockbox fees by introducing automation.
  • Backlogs cleared from ERP migration: With the solution in place, all lag experienced in data migration while processing could be resolved. Teams could then be moved onto higher priority tasks instead.

Collections

  • Improved Customer Experience by Calling Only High-Risk Customers: The solution helped segregate customers into tiers ranked according to risk, making it easy for collectors to pinpoint which clients needed calling urgently. That also helped boost customer satisfaction by ensuring the team only contacted high-risk people based on their urgency.
  • E-Mail and Statement Templates: Using custom templates for correspondence also made tasks much more comfortable than before, saving time and effort.
  • Logging Tasks & Follow-Up of Collections: Detailed tracking of correspondence history and follow-ups helped create a streamlined process that increased transparency and a smoother workflow.

Deductions

  • No Visibility into Dispute Volume and Patterns: With over 1600+ deductions processed per month, no streamlining, and the way data was shared and saved meant a complete lack of transparency into operations . Because of this there were discrepancies in the metrics and data they used. That was a problem because incorrect information meant faulty deductions, which led to their inability to focus and prioritize the process and a poor customer experience
  • Deduction Backup and Approvals Housed In Emails: Data was saved via email, an essential complication for correspondence, and the resolution of said claim was prolonged when searching for a piece of information.
  • Lags in ERP Migration: A backlog of data had to be updated to the recent ERP that they were migrating to.

Impact

Past Due Reduction
Faster Cash Posting
Straight-Through Processing
Headcount Reduction & Faster Resolution

Autopilot for Order to Cash

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