The Three Pronged Strategy to Optimize Inefficient Receivables

  • 80% Cash Automatically Applied
  • Productivity Increase for the Credit Team
  • 20% Reduction in Past Due A/R
Cash Application Cloud
Collections Cloud
Credit Cloud
Business Transformation Stories

We have come a long way with HighRadius. They have really helped us with the manual work and with the business growing, that’s definitely helping us to move forward.

Vicky Klassen
Credit and A/R Manager
J.J. Keller
Challenges
How did HighRadius help
Impact

Challenges

  • System Challenges
    • Credit and A/R processes were done out of a proprietary COBOL-based system:
    • The processes were disjoint from SAP, maintenance was a typical challenge and heavily dependent on the internal IT team.

    • Highly manual operations and limited team sizes:
    • The A/R team included eight collectors for 550,000+ customers and two cash application analysts for processing 2,400+ remittance line-items every day.

  • Implementation Strategy
    • Maximize automation with SAP as a base
    • Low Total Cost of Ownership with Cloud solutions and SaaS
    • Minimal dependence on IT team for maintenance and upgrades
  • Collections Management
    • Increasing Volumes

      With more than 600,000 collections orders and business growth through new products and services the collections workload increased.

    • Limited Resources
      The collections team included 8 collectors for close to 550,000+ customers which was highly inefficient since not all of the at-risk accounts could be addressed.
    • Current Process Pitfalls
      Before HighRadius, the collections team had to deal with 7.3% past-due A/R with a completely manual and ad-hoc process. Further, the worklist was prioritized manually using 17 factors which resulted in a waste of time and labor.
  • Cash Application
    • Error Prone Manual Work

      Remittance aggrigation from various sources was done manually. This also included parsing check images, which was highly error-prone.

    • No Means for Accurate Customer Identification
      The cash application analysts had to manually search and match the A/R invoice with the customer information.
    • Deduction Coding and identifying Discounts
      The analysts had to calculate eligible discounts and identify short-payments and over-payments manually.
  • Credit Management
    • Managing Volume

      The credit team had to deal with 178,000+ customers with open A/R. Since the processes were entirely manual.

    • Manual Aggregation of Credit Reports and Data
      They had to manually aggregate data from multiple sources and keep track of bankruptcy alerts, rating downgrades, and bank guarantees.
    • Reactive Credit Process
      The credit management ans workflow was entirely reactive and manual; the analysts had to initiate correspondence to obtain necessary approvals for credit limits and blocked orders.
ABOUT J.J. KELLER

J. J. Keller & Associates, Inc. is a publisher and service organization, providing a wide spectrum of regulatory and information products and services and complementary forms and supply products to customers regulated by the Department of Transportation, Occupational Safety and Health Administration, and more than 300 state agencies.

INDUSTRY

Service Provider

REGION

North America

REVENUE

$265.4 Million

PRODUCTS

  • Cash Application Cloud
  • Credit Cloud
  • Collections Cloud

How did HighRadius Help

Collections

  • Customer segments
  • Collections strategies
  • Customer call log for notes, promises to pay, and dispute cases
  • Prioritized accounts
  • Rule-based correspondence
  • Letter templates
  • Business managed letters

Cash Application

  • Remittance Auto-Capture
  • Intelligent Invoice Matching
  • Ability to link remittances to payments based on Invoice number, PO number, Order number & Reference number
  • Automated short-payment identification and deduction coding

Credit Management

  • Integrated internal and external alerts
  • Single-screen access to all information: Credit Review, Group Review, Business Partner Review, New Business Opportunity Review, etc.
  • Automated workflow for approval and reviews

Impact

Decrease in Bad Debt
DSO
CEI
Past Due A/R
Cash Automatically Applied
FTEs Reduced
Speed in Credit Reviews

Autopilot for Order to Cash

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