The client, a major international eyewear manufacturer, has an SAP ERP that did not have the functionality needed for accounts receivable efficiency and trade promotion tracking. As a result, many processes were manual, resulting in multi-million-dollar backlogs of accounts receivable with zero visibility into late payments, deductions, or their root causes. In addition, most of the reporting had to be offline using Excel providing limited and late visibility into operations and performance. These manual operations delayed completion and staff overtime work, including applying cash. In addition, the client's 11,000 customers were in different business lines requiring different operating protocols. There were also significant gaps in managing the marketing funds and accruals that supported the client's sales campaigns.
Implementing Carixa Auto Cash and Reconciliation modules solved the backlog, manual work and freed people to perform more critical tasks. Using OCR and RPA, Carixa pulls batch data from the banks and customer portals, including auto-translation of EDI documents (i.e., creating a debit memo).
Carixa also uses highly evolved MICR processes for interpreting and routing payments to the proper accounts. Carixa's Retriever module also automates bank, customer, and carrier portals to autonomously access documents, PODs, and remittance data.
We addressed the client's marketing fund management with the Carixa Trade Promotion Accrual System, including integration with Carixa-Deductions to provide a clean approval workflow between sales and the fund team,
The client is achieving better receivables performance, higher deduction recoveries, and significant labor savings and is on target to reduce DSO by 25% and DDO by 37% without increasing staffing. Deduction follow-up, approvals, chargebacks, and invoice collection operations were streamlined using Carixa intelligent automation, built-in rules, and workflow. In addition, sales districts and channels are more aligned with the special marketing funds associated with customer promotions.
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