Corporate Credit Control in 65 Markets on Six Continents
- Global Credit policy controls
- Credit Scoring
- Credit information
- Credit decision automation
- Credit management workflows
The Situation
The client is one of the world's largest diversified advertising and media companies, located in 65 markets on six continents. They utilized a slow and complex process for approving, monitoring, and rolling-up credit exposures for customers across hundreds of agency networks. Credit policies were not being uniformly followed, subjecting the company to excess risk throughout their global network. They were also under pressure from their compliance department to better control and secure customer data for all their global entities.
Solution
We configured Carixa-Credit as an integrated platform for customer management, incorporating credit information, risk scoring, plus automation of routine credit decisions according to corporate policy. We established workflows by authority levels, so decisions are always made at the appropriate level and according to current guidelines, from the agency in the market to corporate management, as needed. In addition, detailed decision audit tracking provided historical decision backup, including changes in limits, ratings, and approval histories. We designed the Carixa platform for simplicity of use, and regardless of language and culture, it was quickly and seamlessly deployed globally. To meet the client's particular security policies, we established an instance of the Cartixa software inside the client's own data center.
Impact
Carixa's decision workflow for the credit process sped up credit decisions and provided a seamless and secure data environment across 1,100 users in 65+ markets on six continents. Automated workflows eliminated inefficient email chains and communications over twenty-four time zones. A credit analyst anywhere in the world is self-guided by the system, working within now-standardized corporate policies. Auditable, detailed approval and change tracking enable auditors to back into any action. Client executives can view risks by customer, unit, geography, or globally rolled up for consolidated risk analysis across all hierarchies of customers and regions.
To find out how we can help you gain the productivity and financial results obtained by our clients, please click below to set up a conversation with our executive team.
Adding Receivables Automation to a Legacy ERP System
- Cash Application
- Collections
- Deduction Management
- Management Reporting
- Robotic Process Automation
A $20 billion pharmaceutical company needed an automated solution that would provide advanced and integrated cash application, collections, and deduction management, "bolting on" to a legacy ERP, and later SAP. Their objective was to dramatically improve receivables and cash flow performance and administration with a streamlined solution that would eliminate cumbersome, manual processes solve backlogged operations and enable them to close the books on time.
Adding further complexity, a significant merger tripled transaction volumes overnight and, in addition, the client repatriated a failed offshore BPO operation. Lastly, they had a cumbersome process for aging and cash forecasting, which would take many days of manual effort every month to close the books.
Solution:
We organized and facilitated practices and policies to better manage their business, including seeing them through a corporate divestiture. With Carixa, they had a seamless data interface to Peoplesoft.
The project went live with receivables management and auto-cash, invoice collections, deduction management, and reconciliation, and EIPP with a customer portal with invoice copy access and payments capture.
We applied Robotic Process Automation to access customer debit memos and returns data directly from returns centers, and then automatically reconciled the transactions. As the client sold a diverse customer base from large wholesalers to independent retailers, workflow rules were adjusted based on the customer class, policy, amount, etc.
Impact:
Carixa has supported the growth of the clients' business during the almost doubling of their organization by automating the processing, collection, and settlement of one million invoices annually. Carixa's reconciliation automation offsets credit and debits, formerly a burdensome manual process. Their DSO metric has been reduced dramatically, backlogs gone, and they close their AR books on time.
Adding Receivables Automation to a Legacy ERP System
- Cash Application
- Collections
- Deduction Management
- Trade Promotion Matching and Accruals
- Management Reporting
The Situation
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.
Solution
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,
Impact
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.
To find out how we can help you gain the productivity and financial results obtained by our clients, please click below to set up a conversation with our executive team.
