understand, simplify, automate: saving $2 million with
TRANSCRIPT
Learn how Keurig Dr Pepper brought their payments processing in house to save millions of dollars in their annual run rate
SUCCESS STORY
We have seen financial services costs decline by $2.5M while the volume, quality, and productivity increased.
Coleen Zdrojewski, Vice President Financial ServicesDr Pepper Snapple Group Inc.
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1
CASH APPLICATION AUTOMATION SUCCESS STORY
KEURIG DR PEPPER REVEALS THE ROLE AUTOMATION PLAYED FOR THEM, SAVING $2.5 MILLION IN ONE YEAR
IMPACT ACHIEVED AT KDP:
98% Automatic (no-touch) Cash Application
56% FTEs from the cash application team reallocated to other A/R operations despite a 19% increase in the volume of payments
92%of short Payments Identified Automatically to save couple days of work for the Team
Keurig Dr. Pepper is the first to bring hot and
cold beverages together at scale. Formed in
2018 with Keurig Green Mountain and Dr.
Pepper Snapple Group merger, Keurig Dr.
Pepper has annual revenue of over $11.6 billion
and nearly 27,000 employees.
Keurig Dr Pepper (KDP) operates 22
manufacturing and bottling facilities and
more than 100 warehouses and distribution
centers across North America.
ABOUT LEADING BEVERAGE COMPANY IN NORTH AMERICA
Total Revenue
$11.6bn+
Largest Food and Beverage Company in the US
8thTotal Employees~27 k
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2
HEAVY RELIANCE ON 3RD PARTY VENDORS FOR CASH APPLICATION
The financial services team at Keurig Dr Pepper relied on 3rd party vendors, outsourcing their Cash Application and other A/R functions to control costs. This led to limitations such as restricted access and control. Moreover, outsourced contracts prevented shifting to other platforms or discontinuation of services before the contract period.
BETTER CONTROL WITH INSOURCING, BUT NEW CHALLENGES IN SIGHT
Keurig Dr Pepper took a leap by deciding to move their cash application process in-house, but new challenges appeared. The biggest issue the teams faced was that they were strapped for time to cover all critical accounts.
BEFORE AUTOMATION
In the case of check images and remittances flowing in through disparate sources for e-payments, the team had to link every payment and remittance and code deductions manually.
The A/R processes were utterly manual, and there were no worklists incorporated to help analysts prioritize work, leading to time-consuming, inefficient, and wasteful processes.
A lack of metrics and statistics made tracking outsourced resource productivity challenging, causing inconsistencies across processes and creating complications for the A/R team. They thus decided to reevaluate whether they wanted to continue their contract or more operations in-company to have more power and visibility over their processes.
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3
CHALLENGES POST BRINGING CASH APPLICATION OPERATION IN HOUSE
• Manual Remittance Capture From Different Sources:
Analysts had to spend a lot of time on retrieving remittance
data from emails and downloading them from customer web
portals.
• Disparate Data Sources for Payment Capture: Customers
paid through various payment formats including checks,
ACH, and wire. Analysts had to manually link every payment
and remittance and coding deductions manually.
With rapidly progressing sales, the cash application team at Keurig was having a hard time touching all incoming payments. There was a lot of delay, and all the manual work involved in applying cash led to an inefficient process and FTE burnout.
CALL FOR THE RIGHT SOLUTION
KDP wanted a solution that could eliminate non-value tasks through automation. They wanted a solution that could help them automate globally, with minimal need for constant revision and to handle upgrades in the future without causing any hassles. They required centralized infrastructure and, most importantly, a way to cut down on draining manual tasks.
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4
ACING IN-HOUSE OPERATIONS WITH A PLUG AND PLAY SOFTWARE
By leveraging technology to automate their processes, KDP achieved operational excellence by improving staff utilization and enhancing productivity.
● Automated Remittance Capture: The cash
application team at Keurig Dr Pepper was able to
save on time and resources lost in manual
remittance aggregation with automatic
aggregation of remittance data without having to
download them from web portals or emails.Further
the Multi-OCR Engine auto-captured accurate
remittance data from checks.
● Automated Invoice Matching with Seamless
Capture of Payment Information: The solution
enabled the team to automatically match
invoices with the payment. All critical payment
information such as payer name, bank fees,
currency was captured to ensure faster payment
remittance linking.
TRANSFORMATION STARTS
It was once an error-prone and hefty task to deal with the enormous amount of invoices coming in daily; now, even with an increase of 19% in that volume, 56% of the FTEs could be reallocated to other critical tasks.
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5
YIELDING GREAT RESULTS WITH HIGHRADIUS
The cash application solution was designed to provide a cohesive experience for the financial workforce at Keurig Dr Pepper. Once the solution was implemented, they realized immediate qualitative and quantitative benefits.
AFTER AUTOMATION
IMPACT ACHIEVED
98%Automatic (no-touch) Cash
Application
92%of short Payments Identified
Automatically to save couple days of work for the Team
75%Increase in Productivity of Team
even in an uncertain economic
climate
56%FTEs from the cash application team
reallocated to other A/R operations
despite a 19% increase in the volume
of payments
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6
DOING MORE WITH HIGHRADIUS
With the effective implementation of the cash application solution across business units, Keurig Dr Pepper expanded its scope of A/R automation by further leveraging the claims and POD functionality of the Deduction solution by Highradius.
With that Keurig Dr Pepper was able to help analysts focus on the research by undertaking heavy manual lifting like retrieving and attaching backup documents for them.
With this they were not only able to save about 30% of the analysts’ time but also reduce their DSO by about 25%
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7
GAINING GLOBAL CONTROLS AND VISIBILITY WITH CASH APPLICATION SOLUTION
The solution also helped them achieve some exceptional benefits to support their global operations:
● Fully Automated data-based system to reduce the manual workload and
improve efficiency.
● Real-time visibility of the payment statuses to other A/R teams like credit and
collections facilitating better customer experience
● Standardized processes across geographies lead to fewer resources spent on
repetitive training.
9
ABOUT HIGHRADIUS CASH APPLICATION SOLUTIONHighRadius Cash Application Software is the most comprehensive solution available for automating cash application across all payment and remittance formats. Driven by customer-specific business rules, automated on-invoice hit rates of 98%+ are typical with the solution. An AI-based solution available as software-as-a-service, Cash Application Software is easy and cost-effective to deploy and maintain.
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