Significant Reduction in Company's Past Dues by Automating AR
May 29, 2023
A leading operator of office supply superstores in the US. With 75+marketplaces worldwide, the company sells a wide range of office supplies, furniture and equipment along with offering business and technology services.
5 and 6 Days Reduction in ADD and DSO respectively
Automated payment reminders to customers which helped them to prioritize high-risk ones.
Achieved a 360 degree view into all customer accounts.
Can compare the KPIs of their collection team.
The collections team at a leading operator of office supply superstores in the US was practicing paper-based processes and manual prioritization of customer accounts, which led to increased aging – making collections recovery tedious. Everything was done on paper – from aging to strategizing, and invoicing to collections. This made the team devote at least 25-30% of their time to manual activities, leading to an increased workload. The company was handling 900 - 1000 accounts, thus making it difficult to track their collection status.
The company overcame the challenges cause by their manual processes. The following benefits were realized:
The manual, paper-based processes were automated which helped to prioritize high-risk customers further suggesting new collection strategies based on more relevant parameters.
For faster collections recovery, the system predicted the payment date of customers based on multiple factors using AI-based predictions.
Generated real-time insights into customer accounts. With an auto-prioritized worklist, collectors are able segment their customers on the basis of risk and contact more accounts and centrally track activity to review and follow-up, based on the priority of the accounts.
Built-in reporting functionality helps track various performance metrics like aging reports, DSO, ADD, and collection effectiveness index (CEI).