How Fortune 1000 companies and SMEs automate credit and accounts receivable operations to improve productivity and reduce DSO and past-due A/R.
As the previous sections show, there could be significant gains from optimizing each of the individual processes in the credit-to-cash cycle. However, credit and accounts receivable teams could unlock gains in multiples if they start breaking departmental silos and work as an engine.
Starting with the credit team, blocked orders directly affect the top-line of any company. Since the credit and collections teams work in silos, accounts that near credit utilization might get missed out by collections and the new orders get blocked. Sometimes, the case is only that the customer didn?t remember the existing credit limit. Similarly, lack of clarity on deductions means that collections teams either call customers with open deductions and get nowhere or ignore resolved deductions and ignore low hanging fruits for collections.
Figure 16: Blocked Order Process
The figure above outlines all the different people who need to coordinate together to resolve a blocked order. The end result is that the blocked order process is always a reactive process and along with delaying revenue realization, it also is responsible for compliance problems in credit policies.
Figure 17: A Streamlined Blocked Order Process Supported by Integrated Systems and Artificial Intelligence
Leading organizations are strengthening process collaboration by leveraging integrated technology. To elaborate, systems are able to read patterns based on past sales orders and triggering a workflow for potential blocked orders to either send automated correspondence or for the credit analyst to notify the customer about delivery blocks. The customer is then able to directly view the invoice in a buyer-supplier collaboration portal and pay through the same. The credit limit is then automatically freed and orders don?t get blocked.
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.