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Achieving 67% Drop in ADD with HighRadius Collections Automation

  • 67% Reduction in Average Days Delinquent
  • 28% Decrease in Days Sales Outstanding
  • 1000+ Hours of Time Saved every year through Auto-Correspondence
Collections
Business Transformation Stories

“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.”

Kay Rogers
Vice President-North America Financial Transactions
Ferrero
Challenges
How did HighRadius help
Impact

Challenges in Collections

Rapidly Growing Consumer Base made Tracking Receivables Increasingly Difficult

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.

Long Collection Cycles due to Collections Process involving Manual, Repetitive Tasks

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.

Hindered Visibility into Key Performance Metrics due to Data Gaps & Operational Silos among A/R Teams

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.

ABOUT FERRERO

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.

INDUSTRY

Consumer Packaged Goods

HEADQUARTERS

North America

REVENUE

$11.37 Billion

PRODUCTS

Collections

How did HighRadius Help

Focus on Critical Customer Portfolios with AI-Driven Worklist Prioritization

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.

1000+ FTE Work Hours Recovered Every Month with Touchless Dunning

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.

Real-Time Executive Visibility & Easy Stakeholder Collaborations with an Integrated O2C Solution

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.

Impact

Reduction in Average Days Delinquent
Decrease in Days Sales Outstanding
Hours of Time Saved every year through Auto-Correspondence
Kay Rogers

“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

Autopilot for Order to Cash

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