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Ideal Plug-and-Play Model for End-to-End Automation of Payments Processing

  • Zero-Touch Processing
  • Automated Identification, Coding, and Reason Code Mapping
  • No Bank Lockbox Fee for Keying In
Cash Application
Deductions
Business Transformation Stories

HighRadius cloud solutions have a plug and play operating model and are easy to integrate with SAP – the gaps and the needs are taken care of and they are more user friendly than any other vendor solution!

Ellen Farish
Sr. Operations Manager Shared Financial Services
Southwire
Challenges
How did HighRadius help
Impact

Challenges

Receivables Landscape

Southwire’s cash application process is handled by a team of three analysts, a lead, a supervisor, and a manager. There are two banking partners and six lockbox accounts. Payments are received via checks and electronically with multiple remittance sources across checks, emails, EDI files, and web portals. Check payments are processed using bank lockbox files and a standard SAP lockbox program while EFT payments processing is completely manual using online bank reports. Buyer group payments account for 20% (by value) of all payments with a high volume of post-processing exceptions due to the involvement of multiple entities.

  • Two banking partners and six lockbox accounts
  • Complicated buyer group business scenario with payments 20% (by value) of the total pie
  • 100% manual processing of electronic payments
  • Manual aggregation of electronic remittance from emails, EDI files, and web portals
  • Check payments processed through a standard SAP lockbox program leading to inaccurate cash posting and high volume of exceptions handling
  • No support for identification, coding and reason code mapping of short payments

Manual processing of payments is time-consuming and has limited scalability to respond to growing business needs.
The Southwire A/R team used bank lockbox files and a standard SAP lockbox program to process check payments while e remittance aggregation across emails, EDI files, and customer portals was completely manual. Cash application for buyer groups was a major challenge since invoices were generated at the group member level while payments were routed through the parent group with separate remittances provided by each group member.
Moreover, identification and coding of short payments was done manually With growing volumes of deductions and limited data availability, it had started to show heavily on the cash application and deductions management processes

Goals & Objectives

Operational efficiency:
  • Cash posting across checks and e-payments with minimal manual intervention
  • Almost real-time cash application for electronic payments across ACH, wire and payment cards
Ease of use:
  • Plug-and-Play model – Minimal intrusion into the system and no disruption to existing processes
  • Tight integration with ERP
Strategic goals:
  • Enable the receivables team to operate in a customer relationship centric environment
  • Handle the complexity of their business landscape
Cost saving:
  • Eliminate bank data key-in costs while automating remittance aggregation and improving data capture quality
ABOUT THE COMPANY

A leader in technology and innovation, Southwire Company is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture building wire and cable, metal-clad (MC) cable, FlatWire Ready products, cord products (including Tappan™ sound, security, and communication cables through Tappan Wire & Cable Inc.), utility cable products, industrial power cable, OEM wire products, SCR copper and aluminum rod, and continuous casting technology. Southwire also supplies MAXIS wire and cable installation tools to the commercial, industrial, and utility construction markets.

INDUSTRY

Industrial Manufacturing

REGION

North America

REVENUE

$6.1 Billion

PRODUCTS

Cash Application
Deductions

How did HighRadius Help

Custom configurations to meet business requirements

The solution enables customizations to handle specific business needs using artificial intelligence based algorithms Complex cash application scenarios, such as remittance with non-invoice reference numbers or truncated invoice numbers, payments made by alternate payers, cross ERP cash postings, payments made by parent company for multiple child business units, and buyer group payments, can be automated by custom configurations.

Ease of use and scalability of SaaS solution

The cloud based SaaS solution integrates seamlessly with the system and works on a plug-and-play model
with minimal intervention with the existing process and near-zero dependence on internal IT team Users
can scale the services to fit their needs and enjoy a subscription-based service that’s kind to their cash flow since pay as-you-go models allow businesses to pay for only what they are using and not pay heavily for un-used licensing.

Automated deductions identification and coding

The cash application solution identifies and auto-creates deductions, captures deduction information such as claim number and reason codes, and maps customer reason codes to ERP specific reason codes It recovers the time and resources previously lost to manual identification and coding of short payments and helps in faster and more accurate resolution of deductions.

Impact

No Bank Lockbox Fee for Keying In Remittance Information Automated
Automated Identification, Coding, and Reason Code Mapping of Deductions
Zero-Touch Processing of Checks, ACH, Wire, and Credit Cards
Automated Complex Business Scenario Processing Including Buyer Group Payments

Autopilot for Order to Cash

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