Watlow Case Study: Manufacturer Automates Cash Application
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Transcript of Watlow Case Study: Manufacturer Automates Cash Application
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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
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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
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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
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Agenda
About Watlow About Open Scan & Billtrust Cash Application Evolution Challenges The Numbers Watlow’s Story Phase II – Automating Electronics Question & Answer
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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.
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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
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Open Scan &Billtrust
Our Mission is to Companies To Their Customers and Their Cash
Invoice PRESENTMENT
Invoice PAYMENT
CASH APPLICATION
YOUR COMPANY
Customers
Cash
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- 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
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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
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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
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Average Payment Volume vs. Value
Payment volume 10%
80%
10% ElectronicsLockboxRemote
Electronic volumes are low but increasing.
Payment value ($)
30%
65%
5% ElectronicsLockboxRemote
Many of your most valuable customers are moving toward electronics.
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Current lockbox
35%
65%
ExceptionsAutopost
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%
ExceptionsAutopost
1 FTE processing exceptions $0.00 - no data entry fees
Same-day posting $3,300/month payroll
Automation & Work Reduction - Lockbox
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Current process
100%
0% ExceptionsAutopost
3 FTEs keying data $11,250 /month in payroll 3 days to fully post
Open Scan automation
15%
85%
ExceptionsAutopost
1 FTEs processing exceptions $3,750 /month in payroll
Same-day posting
Automation & Work Reduction - Electronics
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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
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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.
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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.
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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.
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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
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Watlow Phase II - Electronics
Will the goal for faster electronic payment processing be realized? How has the implementation gone? What are your next steps?
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Traditional Electronics Data entry and matching payments to remittances is
manual, time consuming, and resource-heavy.
EDI
Coupled payments
Decoupled payments
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Open Scan Electronics Coupled payments
Decoupled payments
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Questions for Cheryl & Ryan
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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
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Thank you for joining us today