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.

"

© HighRadius. All rights reserved.

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

© HighRadius. All rights reserved.

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.

© HighRadius. All rights reserved.

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.

© HighRadius. All rights reserved.

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.

© HighRadius. All rights reserved.

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

© HighRadius. All rights reserved.

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%

© HighRadius. All rights reserved.

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.

Discover More Benefits of HighRadius Cash Application SolutionThe AI-Powered Receivables Automation Platform Trusted by 700+ Industry Leading Companies

LEARN MORE