Integrated Order-to-Cash (OTC) Transformation for Global Shared Service Organizations. Emagia Master Class 3. Automated consolidated receivables – in total and by customer from multiple ERP’s https://www.emagia.com/master-class/

1. Integrated Order-to-Cash
Transformation for Global
Shared Service Organizations
October 8, 2020

2. John G Salek
Strategic AR Advisor, SME
Emagia
Speaker Info

3. • Introduction
• Shared Service Organizations’ Delivery Imperatives
• Capabilities & Competencies Needed
• Digital Automation Required
• Case Study
• Benefits
• Conclusion
• Questions
Agenda

4. 4
Introduction
• Shared Services Organizations (SSO’s) exist to
provide services better & cheaper than they would
be performed in a decentralized environment
• The performance demanded of SSO’s is rigorous,
and closely measured & monitored. For third party
providers there are financial penalties for shortfalls
• An optimal mix of Process, Metrics and
Technology is required to meet the demanding
requirements

5. 5
SSO Delivery Imperatives
• Existential Challenge:
• operating divisions (= internal customers), biased toward
decentralized operations (control)
• Service Level Agreements (SLA’s)
• escalate every year
• elaborate
• shortfalls punished
• The Productivity Annuity – efficiency & effectiveness
• Accommodate all Divisions and Business Models
• Wide variation in revenue streams, customers, markets, ERP’s

6. Capabilities & Competencies Needed
• Policy
• Documented policies with clear exception protocols
• Work reduction policies, (e.g.; contractual allowance for
shortages & damages, automatic small balance write-off)
• Process: Best Practice process adapted to businesses served
• Metrics: the “right” ones; fewer vs more
• Analytics: insight
• Governance
These elements provide the foundation for success

7. 7
Incremental vs Exponential
• Incremental improvements will suffice for the short term
• improvement, especially for newly integrated operations, is
appreciated
• Sustained, high value improvement will require exponential leaps
forward in several sub-processes to compensate for inevitable low
improvement in other sub-processes (constrained by business
models, investment limits, competition or existing excellent
performance)
• Exceptional performance unlikely without Digital Automation

8. 1. Digital AR Portfolio Monitoring
2. Digital Credit Risk Management
3. Digital “Low Touch” Collections
4. Digital AI Powered Cash Application
5. Digital Deduction - Dispute Resolution
6. Customer Self-Service EIPP Portal
7. Analytics
Digital Automation Required

9. • Automated consolidated receivables – in total and by
customer from multiple ERP’s
• Automated consolidated AR portfolio analysis – aging,
risk, payment behavior pattern
• Collection portfolio allocation to Collectors
• Improve information access to AR data and documents
for you and your customers
1 Digital AR Portfolio Monitoring

10. 2 Digital Credit Risk Management
• Customizable, on-line credit application with digital signature
• Automated customizable credit scoring – with real time
import of credit bureau data and payment history
• Automated AI powered credit decisions based on pre-defined
rules to assign credit limits
• Full featured Approval Workflow guided by Delegation of
Authority policy
• Automatic order hold integrated with Collections

11. • Configurable Collections Strategy – multiple parameters
• Prioritized Task List
• Collector Workbench with all required information
• Automated Dunning - 100% customer touch
3 Digital “Low Touch” Collections

12. 4 Digital AI Powered Cash Application
• Digital Assistants extract remittance data from multiple
customer sources/documents in multiple formats
• Remittance data automatically applied to open invoices by
Auto-Cash engine at 85% - 90% hit rate
• Automatic creation of deductions to be routed for resolution
• Digital Assistant engages with customers to help them make
payments via ACH or credit/debit card

13. • AI assisted dispute reason code assignment
• Full featured Workflow to route deductions to assigned Resolver, with
audit trail, internal dunning, & robust reporting of status & results
• Automatic credit to debit matching & clearing
• Root cause Analytics to fuel process improvement efforts
• Mobile friendly workflow
5 Digitally Assisted Deduction/Dispute Resolution

14. • Presents invoice, accepts payment with customer inputting
remittance advice
• Online Payment Options
• Customer can register a dispute
• Customer can self-access its account information
• Mobile Friendly
6 Customer Self-Service EIPP Portal
Self – Service: Customer substitutes their labor for yours

15. • Consolidated Database of all OTC operations
• Analytical insights fuel process improvement which can
deliver Exponential improvement (e.g., invoice
accuracy to 99%)
• 50 pre-formatted analytic dashboards & reports with
ability to custom configure your own
• Credit Risk Analytics to measure overall credit risk of an
AR portfolio
7 Analytics Digital Dashboards and Insights

16. 16
Problem Overview
AHA launched eCommerce site ShopCPR to sell CPR equipment and classes
online. Credit Processing cycle time was over 2 weeks. They needed B2B
digital credit solution to accept more customers and do more business.
Customer Value
• Deployed Emagia Digital Credit Solution - Mobile and ADA compliant
• Digital signatures, digital trade and business reference checks
• Integrated with Experian, AHA custom score-card, automatic credit limit
decisions enabled.
• AHA reduced B2B credit approval process from 2 weeks to 24 to 48 Hrs
• Now processing over 200 -300 credit applications per month
• Scalable foundation for digital ecommerce growth
Case Study

17. Benefits of Efficient & Effective SSO
Enhanced Customer Experience
Cost Savings: staff cost, bad debt expense, funding of AR
Improved Service to Internal Customers
Data Repository to guide Operational Improvements
Higher Revenue & Lower Cost
over the Long Term
Improved Customer
Experience/Satisfaction
Controlled
Credit Risk
Greater
Cash Flow
Increased Revenue
& Profit

18. Conclusion
• SSO’s have an unrelenting demand to deliver
excellence at lower cost every year
• Many factors influence an SSO’s ability to
meet that demand - Process, Policy,
Governance Technology, etc.
• It is unlikely that an SSO can meet its
demands on a sustained basis without
substantial utilization of today’s Digital
Automation tools

19. Questions

20. If you have any questions or comments
about this session, please let us know
in the chat box or write to us at
info@emagia.com
Next Emagia Master Class Session:
Topic: High Touch to Hi-Tech :
Journey to Touchless Collections
Date & Time: Thursday, 22nd October, 10AM PST
Book Your Seat Today !
Orders
Credit
Cash
Application
Collections
Deductions
Payments
Invoicing