How a Leading Food Brand Leveraged A/R Forecasts with 96% Accuracy to

Track Open-Invoices of 1000+ Customers and Improve Collections

  • 0 Days wait time for go-live due to existing integration
  • Auto-generated weekly and monthly forecasts
  • Up to 6-Month forecast horizon across all business units
  • Customized forecast models to calculate early payments and deductions
  • Enabled Analyst to shift focus to improve collections and credit management
Cash Forecasting Cloud
Business Transformation Stories

With over a thousand accounts across North America, timely and accurate forecasting was challenging. Delayed forecasts from multiple regions affected cash at global-level.

The DSO of these customers was manually calculated to identify changing payment behavior and follow-up on collections.

Year-round visibility into cash was absent due to large transaction volume and limited account and transaction-level insight.

With poor future cash visibility, liquidity planning for this multibillion-dollar business was a challenge..



Challenges
How did HighRadius help
Impact

Challenges

Limited Forecasting Capabilities
  • Forecasts were majorly done only twice a year, in June and December
  • Short-term A/R forecasts were inaccurate due to unavailability of relevant data
  • Only ADD and ADP were used to forecast receivables
Manual and Tedious Process of Forecasting
  • A/R forecasting required open invoice data of 1000+ customers
  • Analyst aggregated data in Excel for forecasting
  • Forecast reports were sent manually over email
Low Visibility into A/R across Multiple Horizons
  • Monthly forecasts generated twice a year restricted cash visibility
  • Inefficient processing of A/R data affected collections
Poor Variance Analysis Lacked Insights
  • Analyst had to manually check which invoices are pending
  • Root-causes of variances were time taking to track and address
Difficult to Identify Customer Behavior Change
  • Analyst had to manually calculate DSO to identify payment patterns
  • Early payments and deductions were difficult to handle
Additional Challenges
  • A/R forecasts had to be timely and accurate to manage and move cash at a global-level
  • Collaboration with other departments was a time-consuming process
INDUSTRY

CPG

REGION

United States & Canada

REVENUE

$25.3 billion

How did HighRadius Help

  • Achieved end-to-end automation in forecasting
  • Improved accuracy of short-term and long-term forecasts
  • Forecast horizon increased from 1-month to 6-months
  • Customized models to create scenarios with and without early payments
  • Integration with banks & ERP for automated data gathering
  • Detailed variance analysis identifies root-causes of variances
  • Easier to track open invoices resulting in improved collections & meet targets
  • More time with Analyst to shift focus to higher value tasks

Impact

Automation Across regions added efficiency in forecasting
Forecast Generated daily improved long- term visibility
Accuracy in monthly forecasts
Identified late payments & helped collections

Autopilot for Order to Cash

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