“I think now with HighRadius we are able to streamline everything, and we can have one person take care of four brands. It makes it a lot more efficient and a lot less time-consuming for my employees.”
The accounts receivable process at Sovos Brands was manual and labor-intensive. The team had to match a high volume of invoices with different remittances and complex deductions. They had to gather remittances via emails and web portals, making the entire cash application process highly complex. This hampered the speed and accuracy with which cash was applied.
Given the nature of the business, most customers had multiple open invoices at any given time. The AR team found it hard to close these bills using a manual approach. The unstructured data input also delayed the overall process.
Their AR management process involved massive paperwork, leading to further delays and inevitable errors. The team had to work overtime to rectify the errors, resulting in burnout and higher costs while still leaving a large amount of cash unapplied.
Sovos Brands received the majority of its payments in the form of checks. As a result, cash application analysts had to manually enter all remittance information and check stub details into Excel files for both electronic and check payments. Analysts faced challenges in pursuing late payers to manually reconcile payments with missing and non-standard remittance information.
The massive piles of paper-based data and unorganized workflows caused a lot of confusion for the analysts, further increasing their workload and frustration.
The team at Sovos was looking for a cloud-based solution that could seamlessly integrate using a plug-and-play model, with minimal business involvement and zero dependencies on their internal IT teams.
With digital payment processing being the primary driver of integrated solution adoption, Sovos required a solution that could ensure higher productivity and efficiency. HighRadius’ Cash Application Cloud was a perfect fit that could bring efficiencies, time savings, and other benefits to the company’s overall AR approach.
Sovos Brands, headquartered in Louisville, Colorado, is the country’s fastest-growing food company. All four of the brands—Rao’s, Michael Angelo’s, Noosa, and Birch Benders—are built with authenticity and high-quality ingredients at their core. It is a purposefully-built food platform and growth accelerator with a portfolio of ‘one-of-a-kind’ brands. Sovos Brands leads with a unique approach when it comes to its brands, business, and people, offering genuine, delicious, and unforgettable food experiences.
Consumer Packaged Goods
Louisville, Colorado, United States
Microsoft Dynamics NAV
“I don’t have to worry about something like cash application, we know that’s being done automatically and I don’t have any issues with it. All I know is that now I can focus on products. I can focus on getting to know my customers, getting to real direct relationships with those clients instead of having to focus on applying cash; to me, that’s the biggest advantage.”
Manager, Accounts Receivable
HighRadius helped Sovos deploy its cash application software—a one-stop solution that accurately identifies invoices even when remittance information is missing, boosts analyst productivity, and enables faster exception handling. By digitizing the cash application process, the overall workload of analysts reduced significantly, allowing them to focus on other low-hanging fruits.
Real-time Cash Posting with Automated Invoice Matching: The solution ensures auto-linking of invoices with the payment, even in the most complex business scenarios such as parent-child scenarios. Identifying the exact account to apply payment without an invoice number is no longer an issue as the solution can match invoices based on other references such as purchase order number and sales order number.
Auto-Capture of Remittance Data from Check Stubs with OCR Feature: The multi-OCR engine enables the accurate capture of remittance information from check stubs, reducing dependency on the bank to key in data. The analysts were able to auto-extract remittance data from email body, attachments, password-protected files, EDIs, and AP portals without having to download it from web portals or emails. Furthermore, for check payments received directly from customers, the mRDC feature ensures faster cash reconciliation by scanning a large number of checks and check stubs received via remote deposits in the banks.
Automated Deductions Coding: The solution ensures automatic coding of deductions while mapping customer-supplied reason codes to internal ERP-specific reason codes. This saves time required for manual reason code conversion and dispute resolution.
“With HighRadius, I know that we can do our work in just one day for the cash application. All the cash coming in to conduct over everything in one day, instead of having a place to do one day. Basically, just efficiency.”
Manager, Accounts Receivable