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

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

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

Agenda

About Watlow About Open Scan & Billtrust Cash Application Evolution Challenges The Numbers Watlow’s Story Phase II – Automating Electronics Question & Answer

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.

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

Open Scan &Billtrust

Our Mission is to Companies To Their Customers and Their Cash

Invoice PRESENTMENT

Invoice PAYMENT

CASH APPLICATION

YOUR COMPANY

Customers

Cash

- 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

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

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

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.

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

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

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

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.

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.

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.

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

Watlow Phase II - Electronics

Will the goal for faster electronic payment processing be realized? How has the implementation gone? What are your next steps?

Traditional Electronics Data entry and matching payments to remittances is

manual, time consuming, and resource-heavy.

EDI

Coupled payments

Decoupled payments

Open Scan Electronics Coupled payments

Decoupled payments

Questions for Cheryl & Ryan

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

Thank you for joining us today