Doing more with less is one of the most prevalent mandates in business today. Given how manual the task of applying cash is, this is often one of the first areas targeted in such an initiative. The good news is that automation technology exists that eliminates nearly all of the manual work, freeing up resources to do higher value activities that more positively impact the bottom line. This is exactly how Reckitt Benckiser’s credit department approached the mandate to do more with less.
Reckitt Benckiser was experiencing year-over-year increases of 5% in checks, 24% in invoices, and 18% in deductions and realized that it was time to stop manually keying in all of this information. After a thorough selection process, driven by the IT team and the Director of Credit, they went with the HighRadius’ Cash Application Solution. It was agreed that HighRadius offered the most modern technology available in the market and was able to integrate with the JDE ERP system with little IT involvement.
Reckit Benckiser made the decision to implement the Cash Application Solution in three phases:
- Phase 1: Automate the top 6 largest customers, accounting for 40% of total invoices. This phase included the process of programming customer-specific rules around how to correctly post cash and code deductions.
- Phase 2: Conduct a stress test for HighRadius to make sure the technology could handle the complex processes and high volume that Reckitt Benckiser has.
- Phase 3: Complete the automation of nearly all cash application activities including checks and remittances coming into the bank lockbox.
- 98.5% of cash application is automated
- Staffing costs are down 65%
- No overtime to close the month