A CPG Credit and A/R Success Story
Company Size
1,000+
Region
- Europe
Country
- France
Product
- HighRadius Cash App Cloud
- HighRadius Deductions Cloud
Tech Stack
- Artificial Intelligence
- OCR
- EDI
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
- Application Infrastructure & Middleware - Data Exchange & Integration
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Consumer Goods
- Food & Beverage
Applicable Functions
- Business Operation
- Quality Assurance
Use Cases
- Predictive Maintenance
Services
- Software Design & Engineering Services
- System Integration
About The Customer
Danone is a leading global food and beverage corporation headquartered in Paris. The company is dedicated to bringing health through food to as many people as possible and operates in four main business areas: Essential Dairy and Plant-Based Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone serves a diverse customer base, including over 1000 food distributors ranging from small 'mom & pop' stores to large retailers like Wal-Mart. With a global presence and geographically distributed operations, Danone's Accounts Receivable (A/R) processes were managed through shared services across multiple business units worldwide.
The Challenge
Danone faced significant challenges in its Accounts Receivable (A/R) processes due to a decentralized system and a diverse customer base. The company had to manage multiple payments and remittance formats manually, leading to increased process complexity and a high number of short pays. The A/R team spent a considerable amount of time processing electronic and check payments, which delayed dispute identification and resolution. Additionally, the manual deductions management process caused delays in dispute management, increasing the Days Deductions Outstanding (DDO) to over 45 days. The lack of automation in the collections process further affected cash flow and working capital, and the inability to identify the right customers for collections hindered customer-client relationships.
The Solution
Danone partnered with HighRadius to automate its A/R processes and improve the collections process. HighRadius implemented out-of-the-box engines for parsing remittance from multiple formats, achieving over 90% cash application automation within 90 days. Features like Email Remittance Capture, Checks AI-OCR Capture, and Web Portal Remittance Capture enabled the automatic processing of various remittance formats, significantly increasing the cash posting rate. The HighRadius Cash App Cloud solution automated the identification, matching, and coding of deductions, speeding up deduction resolution and recovery. The Deductions Cloud aggregated data from various sources, such as retailer websites and financial systems, and matched them directly to the customer, automating the entire deductions process. This increased visibility into the deductions process and allowed for timely follow-up with sales, distribution, or customers for resolution.
Operational Impact
Quantitative Benefit
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