Leveraging Technology to Navigate a Complex ERP Landscape and Drive Working Capital Impact

  • 100% improvement in team productivity
  • 67% reduction in Customer onboarding time from 4.5 days to 1.5 days
Credit Cloud
Business Transformation Stories
Video Testimonial
Challenges
How did HighRadius help
Impact

Challenges

Two lines of business: Service Marine Parts & Accessories (Land ‘N’ Sea), and Engines.

Land ‘N’ Sea distributes marine parts and accessories to over 18,000 global customers through the US, Canada, and Latin America with 1,800 customers added yearly. Their Credit Management was driven primarily by spreadsheets and emails.

Multiple ERP systems across a global IT landscape and diverse business units

Mercury Marine has operations in US, Canada, and Latin America. In addition to working in multiple regions, they had four disparate ERPs for storing customer details: Land ‘N’ Sea, Attwood, Garelick, and Mercury Marine. These business units had common customers. The existing systems were antiquated, inefficient, and incapable of interface. Between these businesses, they had an inconsistent credit approach which led to increased complexity.

Complex Credit Management scenario
1. Multiple external data sources:

Data had to be manually pulled from different credit agencies, including Experian and Equifax. Public financials or credit insurance companies like Yahoo Finance were not considered.

2. Time-consuming data entry, leaving no for strategic decision making:

The entire process relied on spreadsheets, faxes, and email chasing.

Data had to be entered twice, once on a spreadsheet and then again on the ERP.

3. Disconnected ERP systems creating siloed A/R processes:

Since different business units had different ERPs and some of these units had common customers, this led to dealing with multiple ERPs for retrieving and updating customer data.

Handling New Customer Applications and Existing Customer Reviews
Challenges with New Customer Applications:
  • Prone to error due to manual data-entry from various sources such as e-mail, paper, and fax
  • Back-and-forth correspondence for information
  • Onboarding a new customer required 4.5 days
Challenges with Existing Customer Reviews:
  • Existing customer details such as payment history, transaction details had to be manually pulled from four different ERPs
  • There were only 200-300 major customers who reviewed once every year. Other customers were reviewed every alternate year
A credit analysts’ nightmare – managing credit data across multiple ERP systems

Mercury Machine had multiple business units, and it was likely that there were common customers across businesses. If a customer worked with Garelick, Mercury Marine, and Attwood, then to manage the credit risk, the credit analysts needed to manually look at the customer information present in four different ERPs.

The credit teams were needed a strategy that helped them connect information across multiple ERP systems to provide unprecedented visibility, so that credit risk is reduced and the credit risk monitoring process is improved.

ABOUT MERCURY MARINE

Mercury Marine is an industry-leading developer and manufacturer of a broad range of marine propulsion systems for recreational and commercial applications acquired by Brunswick Corporation in 1961.

INDUSTRY

Marine Engine Manufacturer

REGION

North America

REVENUE

$719.7 million

PRODUCTS

Credit Cloud

Goals & Objectives

Faced with a lot of manual processes, Mercury Marine was looking for a solution that could:
  • Eliminate the double-data entry in spreadsheets
  • Be able to pull information from 40+ global credit agencies
  • Simplify the tracking of credit application statuses
  • Enhance collaboration between credit team and sales to contribute to the topline
  • Help them stick to the periodic credit review policy
  • Effectively handle periodic credit reviews for 18,000 customers
Paul Watters

The main reason behind automating credit was to focus our effort where it mattered most.

Paul Watters
Director Worldwide Credit & Treasury
Mercury Marine

How did HighRadius Help

The HighRadius solution met the above challenges by providing:
Online Credit Application

The shift of inputting data from paper to online, helped the eliminate the outdated paper –based system.

Integration with 40+ Global Agency Reports

The solution eliminates the need for credit analysts to manually collect information from different credit agencies. The solution is integrated with multiple credit agencies, such as Experian and Equifax, for the seamless capture of agency reports automatically to eliminate manual and repetitive work.

The Solution – Analyst Workbench

The credit analysts get their own individual worklists in the solution. The worklist gets populated with the new customer applications in real-time for review.

During the review process, the solution pulls data from credit agencies and which helps them analyze payment trends and calculate an updated credit score to set a credit limit.

Prioritization of Large Accounts

The solution prioritizes accounts by identifying the accounts with large amounts outstanding. This reduces credit risk by focusing on the high-risk accounts.

Impact

Improvement in A/R Team Productivity
Reduction in Customer Onboarding Time
from 4.5 Days to 1.5 Days

Autopilot for Order to Cash

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