“With HighRadius, everything is connected, and we have a single source of truth. They have always wanted to see us succeed as well, and so we’ve had great success just partnering with them.”
With business growth came new challenges. It became increasingly difficult for the collections team to keep track of critical and past-due customer accounts. With a limited workforce, it was also a hurdle to follow up with customers for timely payments.
The entire collections process was manual. The collections team would periodically review each account and prioritize the customers to contact based on when the payment was overdue. After prioritizing the worklist, the team would follow up with the customers through email. The dunning process was slow and manual, with time lost in building customer lists, sending emails, tracking promise-to-pays and notes.
With multiple siloed systems for credit, invoicing, cash posting, deductions, and collections management, tracking customers’ data was challenging. The collection team would consolidate the customer communication notes and documents from various sources, such as the promise-to-pay, reconciliations, and deductions. However, there was no central repository for the team to view them.
Ferrero Group is the second-largest chocolate confectionery globally and an iconic house of brands with Nutella®, Kinder®, and Ferrero Rocher®, under its umbrella. It is present in more than 50 countries, with 31 manufacturing plants and a distribution network in 170 countries.
Consumer Packaged Goods
North America
$11.37 Billion
Collections
The HighRadius Collections Solution automatically identifies accounts at the risk of delinquency based on customer credit scores and collection rules defined by Ferrero. It then prioritizes the team’s worklist based on system-configured parameters such as payment history trend and risk score, among others.
The Collections Analysts were able to automatically send bulk email correspondence to multiple customers at a time, proactively reminding them about payment dues. Automating tedious, repetitive tasks like creating P2Ps, notes, emails allowed the collectors to laser-focus on other strategic tasks like building recovery strategies for critical customer portfolios.
By integrating multiple order-to-cash processes such as credit, deductions management, collections, and cash posting, all finance teams have access to aggregated customer data points. It helps increase cohesion between the receivables teams. The application also provides reporting functionality to increase account-level visibility for the leadership team. The transformation increased promise-to-pays from customers, thereby also positively impacting the collection effectiveness metric.
“You need an integrated system or a one-stop-shop with all the information in one place. Otherwise, it’s just more effort for you to search for the data from different sources. It gives you a holistic view of the customer data.”
Kay Rogers
Vice President-North America Financial Transactions
Ferrero
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