case study: yaskawa america inc reduces ... accounts receivable and order-to-cash conference is...
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
1 5/11/2017
CASE STUDY: YASKAWA AMERICA INC
REDUCES DAYS SALES OUTSTANDING AND
BAD DEBT WRITE-OFFS WITH IMPROVED
COLLECTIONS AND DISPUTE RESOLUTION
PROCESSES
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
What We’ll Cover
About Yaskawa and The Credit Department
Business Challenges and Objectives
Solution / Implementation of SAP Collections and Dispute Management
Expected Results – Actual Results Keys to our Success and Wrap-up
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
About Yaskawa America Inc
Founded: 1915
Sales: $4.0B
Associates: 8,246
Headquarters: Kitakyushu, Fukuoka, Japan
78 Subsidiaries and 21 Affiliates operating in 25 countries worldwide
Manufacturing plants in 9 countries
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
About Yaskawa America Inc.
Founded: 1967
Sales: $663 Million
Associates: 924
Products: AC Inverter Drives, Servo Amplifiers, Servomotors, Machine Controllers, Motion Controllers and Robotics
Industries: Automotive, Building Automation, Semiconductor, Food & Beverage, Packaging, Oil / Gas, Machine Tool, Elevators, Plastics / Rubber, Textile / Fibers, etc.
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Distributors
OEMs After Market
(service and systems group)
Our Customer Base
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Our Credit and Collections Dept.
Two Sr. Credit and Collections Analysts
Credit and Collections Analyst
Cash Application Specialist
– Disputes
Manager >> Reports to Corporate Controller
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Credit and Collections
• Regular Mail
• Fax
• EDI
Bill Presentment
• Traditional checks
• Check by phone
• On-Line-Bill Pay
• Credit Card
• ACH/Wires
Payment Options
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
What We’ll Cover About Yaskawa and The Credit Department
Business Challenges and Objectives
Solution / Implementation of SAP Collections and
Dispute Management
Expected Results - Actual Results
Keys to our Success and Wrap-up
8
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Business Challenges / Drivers
OPERATIONAL CHALLENGES (before FSCM / Receivables Management) Inadequate tools to manage collections and disputes
Manager’s inability to manage queues
Monitoring and reporting tools were inadequate
Need to automate collections and centralize disputes
RISK Ignore small dollars
Waste too much time resolving disputes
Lack of performance measurements
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Objective of Automating Collections & Disputes
DSO Reduction
Write-offs Reduction
Productivity Gains
Dispute Resolution / Deduction Management
Improve Customer Experience
Employee Morale / Job Satisfaction Increase
Performance Recognition / Management
Process Standardization & Control
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
What We’ll Cover About Yaskawa and the Credit Department
Business Challenges and Objectives
Solution / Implementation of SAP Collections and
Dispute Management
Expected Results - Actual Results
Keys to our Success and Wrap-up
11
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
12
Our Solution/Implementation
Our Solution
FSCM / Receivables Management
Collections and Dispute Management
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
SAP ECC 6.0 EhP4 • MM,PP,SD,WM,FI/CO
SAP CRM 7.0 (EhP4) • IC, Service / Repair, Sales, SFA
SAP SCM 7.0 • Demand Planning
SAP NetWeaver® BW 7.4
SAP Landscape
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Collections Management Benefits
Easy to learn
Flexible Configuration
Key Functionality
Strategic Collections
Prioritization
Auto generation of daily work list
Generation of resubmission (follow up reminder)
Documentation for the ‘customer contact'
Auto creation of dispute cases
Automatically send mass correspondence
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Management Benefits
Automatic creation of dispute cases
Creation of dispute cases when they arise
No time delay between discovering dispute and opening a dispute case
Central view of dispute cases
Key Functionality
Up-to-date information
Dispute cases can be created before the actual payment deduction takes place
Dispute cases can be created after an invoice has been cleared
Manual creation of cases for credit balances (now creates automatically)
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Implementation Out of the Box Collections and Dispute modules
Small enhancements
Third-party correspondence packages
You do not have to be a programmer
Create correspondence on the fly
12 week Implementation Cycle
Integration of business partners into FSCM posed the biggest challenge
No need to bring in all contacts if using CRM
2 collection profiles, 3 collection strategies 16
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Added a Correspondence Accelerator Collections Account statement / auto monthly statements Order pending (series of two letters) Past due reminders (series of three letters) Proactive letter (with and without copy of invoice) Final demand Disputes Credit balance and partial credit Deductions denied Document requests Sales tax letters Unclaimed property letters Write off to bad debt Refunds to customers
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Daily Process — Worklist A
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Worklists (Collections)
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Customer Account
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Customer Account
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
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Correspondence
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
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FSCM Customer Account
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Case
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Correspondence Log
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
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Disputes / Correspondence
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Case
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Case (cont.)
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Dispute Case (cont.)
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Create Dispute to Request Write Off to Bad Debt
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Create Manual Dispute from Fbl5n or Worklist
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dispute Management for Refund Checks
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Go to UDM_Dispute to Find Case
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dispute Management for Refund Checks
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dispute Management for Refund Checks
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Before Refund Check is Cut
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dispute Management for Unclaimed Property
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dispute Management for Unclaimed Property (cont.)
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
What We’ll Cover About Yaskawa and The Credit Department
Business Challenges and Objectives
Solution / Implementation of SAP Collections and
Dispute Management
Expected Results - Actual Results
Keys to our Success and Wrap-up
39
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Expected Results Lower DSO
Decrease in Past Due A/R
Collection Effectiveness
Interest Expense Savings
Write-offs Reduction
Dispute Resolution / Deduction Management Process Standardization & Control
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
How FSCM Has Helped Us Achieve Desired Results Eliminate time spent on manual, administrative tasks
Systematically build work queues (disputes, collection calls)
Trigger follow-up actions
Automatically send mass correspondence
Use Dispute Automation to:
Write off bad debt
Process refund checks request
Capture and comply with “Unclaimed Property” laws
Track shipments with wrong payment terms 41
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Financial Performance Results
DSO =2016=40.8 (5.5 days lower from go live)
Percentage Current = 85%-90%
CEI % = 85%-89%
Write off bad debt = Reduced practically to 0
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
What We’ll Cover
About Yaskawa and The Credit Department
Business Challenges and Objectives
Solution / Implementation of SAP Collections and Dispute Management
Expected Results - Results
Keys to our Success and Wrap-up
43
The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
FSCM Mission DSO at Yaskawa America, Inc.
Commitment from Management
Involvement of Stakeholders
Work closely with IT
Business Processes Focused on customer
Make system imperfections opportunities to explore
Think outside the box – be creative
Bonus and Recognition tied to SAP FSCM Success
Correspondence Accelerator from 3rd party solution provider
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
7 Key Points to Take Home Know your SAP solutions and SAP NetWeaver BW versions Include your team during the blueprint stage as early as
possible Dispute Management can be used for credit balances Keep initial implementation simple Enhancements should come later
Discuss your daily issues after go live with your team / users Everyone has input / ideas
Add a correspondence accelerator to standardize communication
Don’t take NO for an answer – You know your process best!
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The Accounts Receivable and Order-to-Cash Conference is produced by:
May 10-12, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
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How to contact me:
Elizabeth Chamorro
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