Increase Cash Flow with Automation

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What stops an order from being paid at your company?

For most, ineffecient operations that lack automation and integration for order-to-cash management are the major blockage point. In this webinar, you will learn how companies are addressing these challenges.Companies of all sizes are using an integrated approach that embeds policy, automates processes, and drives workflow with online portals for internal and external collaboration.

This new operations approach results in:

Increased Productivity of Credit Operation
Collaboration Between Credit, Sales, Customers, A/P and Treasury
Reduced Dispute Cycle Time and Volume
Mitigated Corporate Credit Risk
Improved Customer Relationships

Published in: Economy & Finance, Business
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  • Increase Cash Flow with Automation

    1. 1. Using Technology to Increase the Efficiency and Effectiveness of the Credit Operation
    2. 2. Drivers for Technology Poor Management of Trade Receivables Inefficient & ineffective management of working capital, particularly trade receivables, is often the cause of poor cash flow and high operating costs within the finance operation. Companies that implement a fully integrated Order-to-Cash solution can significantly improve productivity and visibility leading to improved financial and operational performance. Using Automation to Drive Performance The Underlying Cause The lack of automated systems and integration has resulted in low productivity, ineffective processes, and poor visibility.
    3. 3. MEASUREMENTS OF EFFICIENCY & EFFECTIVENESS *Source, Hackett Group, 2005 Book of Numbers. World Class Finance Organizations Score in the top 10% for Efficiency & Effectiveness Measurements of World Class Finance Performance Days Sales Outstanding (DSO ) (Peer Comparisons) Effectiveness Operating Costs: (FTE / $Billion in Revenue) Efficiency
    4. 4. WORLD CLASS PERFORMANCE *Source, Hackett Group, 2005 Book of Numbers. Finance Staff per Billion of Revenue Efficiency Gains: 51% Lower FTE Requirements
    5. 5. WORLD CLASS PERFORMANCE *Source, Hackett Group, 2005 Book of Numbers. Increased Economic Return Effectiveness: 55% Lower Days Sales Outstanding
    6. 6. WHAT IS DIFFERENT? *Source, Hackett Group, 2005 Book of Numbers. Reduce Redundancy & Error Improve Visibility Consolidation of Disparate Systems Leverage Data & Resources Improve Communication Collaboration Drivers for World Class Performance Automation vs. Manual Processing Increase Productivity Enabling Technology
    7. 7. BENEFITS OF AUTOMATION Automated & Integrated Order-to-Cash Solution Challenge <ul><li>Credit Risk Management & Risk Alerts </li></ul><ul><li>Detailed Reporting / Portfolio Management / Forecasting </li></ul><ul><li>Track Adherence to Embedded Policy </li></ul>Internal Controls Sarbanes-Oxley <ul><li>Integrated Cash Application in Real-time </li></ul><ul><li>Automate Collections & Dispute Processing </li></ul><ul><li>Online Customer Self-Service / EIPP </li></ul>Boost Operating Margins <ul><li>Identify Deductions during Cash Application </li></ul><ul><li>Proactively Identify & Assign Ownership of Disputes </li></ul><ul><li>Facilitate Collaboration with Customer & Sales Portals </li></ul>Reduce Bad Debt Expense <ul><li>Automate Cash Collections to Expedite Payment </li></ul><ul><li>Proactively Identify & Assign Ownership of Disputes </li></ul><ul><li>Consistently Monitor Corporate Credit Risk Exposure </li></ul>Increase Cash Flow and Lower DSO
    8. 8. 1.5 hrs / 18% 6 hrs / 75 % ENABLING TECHNOLOGY: AUTOMATION .5 hr / 7% 1. Prioritize 1 hr / 13% 4. Follow-up 2.5 hrs / 31% 5. Report .5 hr / 7% 2. Prepare 1 hr / 13% 3. Contact 3 hrs / 36%
    9. 9. CONSOLIDATION OF SYSTEMS <ul><li>Consolidate Data from Multiple Sources to Single Solution </li></ul><ul><li>Embed Policy to Automate Processes & Drive Workflow </li></ul><ul><li>Leverage Data Across the Entire Order-to-Cash Cycle </li></ul><ul><li>Facilitate Internal & External Collaboration </li></ul><ul><li>Track Performance, Adherence to Policy & Effectiveness </li></ul>Integrated Order-to-Cash Management Credit Risk Self-Serve EIPP Collections Disputes Claims Cash Application Cash Management A/P Workflow
    10. 10. COLLABORATIVE TECHNOLOGY CREDIT OPERATION Credit Facilitation Collections Management Dispute Resolution Cash Application Role Based Interfaces RULES ENGINE Customers COLLABORATE Sales Service Executive Centralized Database Consolidate Data Centralized Repository Oracle Legacy SAP JDE
    11. 11. COLLABORATION TECHNOLOGY <ul><li>CREDIT DATA PROVIDERS </li></ul><ul><li>SALES & SERVICE </li></ul><ul><li>CUSTOMERS </li></ul><ul><li>TREASURY </li></ul>
    12. 12. IMPACT ON EFFICIENCY <ul><li>Lowered DSO by 11% in 1st Year </li></ul><ul><li>Increased Customer Contacts 10 Fold </li></ul><ul><li>Reduce Past Due A/R by $15 Million </li></ul>Interfaced GETPAID with SAP. Medical Devices <ul><li>Reduced FTE in US Alone by 56% </li></ul><ul><li>Decreased Past Due A/R by 30% in 1 st Y </li></ul><ul><li>Improved Visibility to Global Organization </li></ul>Multiple business and data Feeds Distribution <ul><li>Decreased DSO by 29% </li></ul><ul><li>Reduced Open Dispute Volume by 87% </li></ul><ul><li>Decreased Past Due A/R by 24% </li></ul><ul><li>Root-cause Analysis </li></ul>Multiple business units on AS/400 systems. Transportation <ul><li>Reduced DSO by 36 Days </li></ul><ul><li>Reduced Dispute Volume by 98% </li></ul><ul><li>Maintained FTE with 125% Revenue Growth </li></ul>Interfaced GETPAID with SAP – global. Oil & Gas <ul><li>Increased Average Collector Portfolio 85% </li></ul><ul><li>57% Decrease in Past Due A/R </li></ul><ul><li>Reduced FTE from 30 to 5 with 11% Growth </li></ul>Consolidated data from 30 different ERP & A/R Systems. Media Services Results Environment Company
    13. 13. IMPACT ON EFFICIENCY <ul><li>Lowered DSO by 11% in 1st Year </li></ul><ul><li>Increased Customer Contacts 10 Fold </li></ul><ul><li>Reduce Past Due A/R by $15 Million </li></ul>Interfaced GETPAID with SAP. Medical Devices <ul><li>Reduced FTE in US Alone by 56% </li></ul><ul><li>Decreased Past Due A/R by 30% in 1 st Y </li></ul><ul><li>Improved Visibility to Global Organization </li></ul>Multiple business and data Feeds Distribution <ul><li>Decreased DSO by 29% </li></ul><ul><li>Reduced Open Dispute Volume by 87% </li></ul><ul><li>Decreased Past Due A/R by 24% </li></ul><ul><li>Root-cause Analysis </li></ul>Multiple business units on AS/400 systems. Transportation <ul><li>Reduced DSO by 36 Days </li></ul><ul><li>Reduced Dispute Volume by 98% </li></ul><ul><li>Maintained FTE with 125% Revenue Growth </li></ul>Interfaced GETPAID with SAP – global. Oil & Gas <ul><li>Increased Average Collector Portfolio 85% </li></ul><ul><li>57% Decrease in Past Due A/R </li></ul><ul><li>Reduced FTE from 30 to 5 with 11% Growth </li></ul>Consolidated data from 30 different ERP & A/R Systems. Media Services Results Environment Company
    14. 14. FLEXIBLE TECHNOLOGY <ul><li>Developments in Technology Allow </li></ul><ul><li>Companies of All Sizes to Benefit: </li></ul><ul><li>IN-HOUSE SOLUTIONS </li></ul><ul><li>HOSTED SOLUTIONS </li></ul><ul><li>ASP SOLUTIONS </li></ul>
    15. 15. <ul><li>Q&A </li></ul><ul><li>Lucia Cotis, VP Global Marketing - AvantGard </li></ul><ul><li>Jon Reeves, VP Strategic Accounts - AvantGard GETPAID </li></ul><ul><li>[email_address] </li></ul><ul><li>973-463-1500 / 800-395-9996 </li></ul><ul><li>www.sungard.com/avantgard/getpaid </li></ul>AUTOMATION TECHNOLOGY

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