Watlow, an industrial heating manufacturer, employs Open Scan to automate its cash application process.

1. BILLTRUST
Watlow Case Study
Presented By:
Cheryl Pinson & Ryan Stoops| August 26, 2014
End-to-End Invoice-to-Cash Solutions
Open Scan Summary & Watlow Case Study

2. Introductions
Ryan Stoops joined Open Scan in 2006. During his tenure at Open Scan, he has helped the company
grow, assisted with general marketing, sales, and operations. He was integral in identifying verticals and
industries to serve as well as product direction and development. Ryan has worked in journalism, public
relations, high tech marketing, magazines, newspaper, not-for profit, electrical power distribution, and
banking since 1997.
Ryan has a Bachelor of Arts Degree in Journalism, P.R., and Marketing with a minor in Political Science.
Originally from Boulder Colorado, he resides in Denver.
Ryan Stoops
Marketing Manager
Open Scan, a Division of Billtrust

3. Introductions
Cheryl has worked in the Credit and Collections field for more than 20 years working for Brown Shoe Co and GE
Capital. She has been the Credit Manager at Watlow Electric Manufacturing Co since 2005, responsible for both
domestic and international collections for the manufacturing company and is also Six Sigma / Greenbelt
certified.
Cheryl also teaches various courses for the NACM Connect Institute of Credit. She was awarded with the NACM
Gateway President’s Award in 2012 for her many contributions to the Association.
Cheryl Pinson, CCE
Credit Manager
Watlow

4. Agenda
About Watlow
About Open Scan & Billtrust
Cash Application Evolution
Challenges
The Numbers
Watlow’s Story
Phase II – Automating Electronics
Question & Answer

5. About Watlow
Watlow designs and manufactures industrial heaters, temperature sensors, controllers and supporting
software as well as assemblies – all of the components of a thermal system. The company partners with its
customers to optimize thermal performance, decrease design time and improve efficiency of their products
and applications.
Watlow brings its experience to numerous industries, including semiconductor processing, environmental
chambers, energy processes, diesel emissions, medical and foodservice equipment.
Since 1922, Watlow has grown in product capability, market experience and global reach. The company holds
more than 200 patents and employs 2,000 employees working in nine manufacturing facilities and three
technology centers in the United States, Mexico, Europe and Asia. Watlow also has sales offices in 16 countries
around the world. The company continues to grow, while the commitment remains the same – to provide its
customers with superior products and services for their individual needs.

6. Founded in 1998
Denver, CO
Software-as-a-Service
Development Company
 Enterprise solutions
 Wholesale environment
 Accounts receivable
Delivering industry-defining
automation technology to
Fortune 1000 companies.”
The leader in
financial workflow
automation for
accounts receivable
with proven success
in the market for
more than 16 years.
“
About Open Scan

7. Open Scan
&Billtrust
Our Mission is to
Companies
To Their
Customers
and Their Cash
Invoice
PRESENTMENT
Invoice
PAYMENT
CASH APPLICATION
YOUR COMPANY
Customers
Cash

8. - Capture payments from all sources - Lockbox, Bank, ACH, Wire
- Consolidate and apply to ERP
- Seamlessly handle “de-coupled” payments
80-85%
15-20%- Secure, branded portals to support online payment
Invoice Delivery
SUPPLIER
PAYMENT CYCLE SOLUTION
- Sends invoices to buyers across multiple channels based on preferences
- Timely and accurate delivery with tracking
- Linking to AP Systems
BUYERS

9. Inefficient ways to process receivables:
 Lockbox processing
 In-house processing
 Manual electronic payment processing
Savings
 100% elimination of data entry costs
 50-75% resource reallocation
 40-50% reduction in exceptions
 1-3 Days Receivables Outstanding
reduction
Technology helps world-class
corporations achieve:
Process Improvements
 Cash application
 Deduction management
 Collections
More timely and accurate data into ERPs
Cash Application Evolution

10. A/R Business Challenges
 Processing payments is more complex and labor intensive
 Payment types are diversifying
 B2B paper checks are not going away
 Decoupled remittances are growing with electronic payments
 Unauthorized deductions are growing

11. Average Payment Volume vs. Value
Payment volume
10%
80%
10% Electronics
Lockbox
Remote
Electronic volumes are low but
increasing.
Payment value ($)
30%
65%
5% Electronics
Lockbox
Remote
Many of your most valuable customers
are moving toward electronics.

12. Current lockbox
35%
65%
Exceptions
Autopost
5 FTEs processing exceptions
$16,000/month in data entry fees
1.5 days to fully post
$17,000/month payroll
Open Scan automation
15%
85%
Exceptions
Autopost
1 FTE processing exceptions
$0.00 - no data entry fees
Same-day posting
$3,300/month payroll
Automation & Work Reduction - Lockbox

13. Current process
100%
0% Exceptions
Autopost
3 FTEs keying data
$11,250 /month in payroll
3 days to fully post
Open Scan automation
15%
85%
Exceptions
Autopost
1 FTEs processing exceptions
$3,750 /month in payroll
Same-day posting
Automation & Work Reduction - Electronics

14. Watllow’s Situation
No designated cash application employees.
Need to automate manual process as our sales
continue to grow
Strong desire to move our customer base to
electronic payments instead of paper checks

15. Watlow’s Goals
Goals
 Watlow had been looking for a way to automate payments –
primarily electronic payments.
 Dynamic Receivables met their size and budgetary needs.
 Wanted the credit employees to engage in less cash
application and more credit management.

16. Watlow’s Results
Results
Two or three people can now process 200 checks in less than
half and hour.
Low start up investment.
Currently implementing Electronics Correlation phase and
looking forward to results as this is a major pain point.

17. The Broken Promise of Electronics
Why the slow adoption?
 Coupled payments and remits don’t
follow a standard and are not
human-readable.
 Heavy IT overhead to map EDI820s.
 Processed manually.
 Most remits are decoupled from the
payment.
Apply technology to:
 Automate the ingestion of EDI820’s and
decoupled remits.
 Intelligently match and correct data
before it flows into the ERP.
 Process all payments in the same
workflow.
 Eliminate the majority of the manual tasks
done today.

18. B2B Payment Predictions
Prediction:
61 percent of all B2B
payments will be
conducted
electronically
by the year 2010.
http//www.emarketer.com. (June 2003) “Electronic Payments: From Online Bill Payments to Credit Cards –
Statistics, Strategies, and Trends.”
This was predicted in 2003

19. Watlow Phase II - Electronics
Will the goal for faster electronic payment
processing be realized?
How has the implementation gone?
What are your next steps?

20. Traditional Electronics Data entry and matching
payments to remittances is
manual, time consuming, and
resource-heavy.
EDI
Coupled payments
Decoupled
payments

21. Open Scan Electronics
Coupled payments
Decoupled payments

22. Questions for Cheryl & Ryan

23. Key Takeaways
Increase performance & efficiency
Reduce bank lockbox fees & in-house staffing costs
Improve posting time and receivables data quality
Maximize hit/match rates
Reduce errors and exception items
Automate EDI 820s and decoupled electronic payments
Increase productivity and streamline complex processes
Process deductions automatically
Apply cash across multiple divisions and easily handle parent/child transactions
Integrate easily with your bank & ERP Systems

24. Thank you for joining us today