AR automation helps India’s largest manufacturer of consumer electrical appliances

Introduction

Market leaders in a wide spectrum of consumer products such as fans, domestic pumps, street lighting, etc for over 20 years, the products are available in nearly 150,000 retail points across the country, serving 3000+ dealers/distributor network spread across 29 states PAN India

Challenge

 Disputes arose due to manual adjustments which took more than one man-hours per payment giving rise to customer dissatisfaction. 

 Unadjusted Credit Notes (UACs) manually knocked off before the month-end, punching a new one and communicate the same to customers was a long process. 

 Multi-fold efforts are put for processing cheque payments: 

 Payment reminders were sent to the customers and processed once approved. 

 Collected cheques received via couriers or which were delivered. 

 Deposited slips, created payment advise and punched payment receipt entries

 Handling the early bird discount required a lot of manual intervention which created issues. 

 Dealers/Distributors were unable to view outstanding in real-time for which had to ask for their ledger to make payment to Crompton. 

 20-30% of salesmen time was spent to resolve open disputes or due invoices for collection

 Handling the early bird discount required a lot of manual intervention which created issues. 

 Dealers/Distributors were unable to view outstanding in real-time for which had to ask for their ledger to make payment to Crompton. 

 20-30% of salesmen time was spent to resolve open disputes or due invoices for collection

Solution

Global PayEx engaged with the client to deploy the EIPP + AR Recon solution designed to present Invoice electronically and manage the reconciliation of payments by the auto-posting of the receipts in the client’s ERP 

The setup consisted of the following key components: 

 Master data exchange of all client’s customers 

 Transactional data exchange mechanism between client and Freepay 

 Integration between ERP, banks collection and Freepay updated all invoice paid via our platform

After implementing Freepay client was able to 

  Freepay automated presentation of payments eliminating the manual efforts and errors. 

 Cheque payments were not accepted once on NACH platform, removing the manual efforts. 

Reconciliation efforts are simplified as payment made in Freepay is against invoice/DNs/CNs.

 Dealers can view & pay from within Freepay which automatically reconciled back at ERP leading to short TAT for clearing credit line along with a real-time view of the ledger 

 Money and time was saved on writing cheques

 Automated email and SMS reminders on Freepay for the new, due and overdue invoices 

 Live MIS dashboards to view real-time outstanding obligations and payments made by respective customers.

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