Ebook

Boost O2C Efficiency with Digital Assistants

Boost O2C Efficiency with Digital Assistants

Digital Assistants can play a major role in boosting the order-to-cash (O2C) efficiency.

Enterprise Digital Assistants are helping scale operations in global finance departments and shared services centers. This technology is not a vision of the future; it is already helping many companies – today!

With cognitive and human-like smart conversational capabilities, along with continuously evolving job skills, digital assistants can perform specific tasks such as credit, collections, cash application, and deductions processing in the Order-to-Cash (O2C) cash process.

Download this eBook to learn how to:

  • Boost O2C efficiency with AI-powered Digital Assistants
  • Automate repetitive, manual tasks and facilitate work from home
  • Increase credit, collections, deductions and cash app operations efficiency
  • Improve digital customer experience 24Ă—7 in your financial services
  • Accelerate fast and frictionless service to enable real-time insights

A glimpse into this eBook

  • Artificial Intelligence (AI) powered Digital Assistants can perform 70 to 90% of manual operations in a process, which delivers enormous efficiency improvements
  • AI-powered Digital Assistants also improve accuracy, speed, and customer response
  • Digital Assistants are particularly well-suited to Order-to Cash (O2C) operations
  • Digital Assistants are operating today in many companies, assisting both employees and customers

Digital Assistants perform/assist these Credit Risk Management activities

  • Secure completed on-line Credit Application from applicant
  • Obtain bank & trade references, Credit Bureau info, and payment history
  • Verify business license, sales & use tax, OFAC, legal address, etc.
  • Perform Credit scoring
  • Make Credit decisions based on pre-defined rules to assign credit limits
  • Route Credit Limits for Approval guided by Delegation of Authority policy
  • Trigger periodic credit limit update process
  • Perhaps the largest beneficiary of (AI) Powered Digital Assistants is Cash Application
  • Digital Assistants can automatically extract remittance data from multiple sources & documents in many different formats, enter the data and auto-apply the payments to open invoices
  • It is a dramatic leap forward in the evolution of Cash Application:
  • Manual
  • OCR
  • RPA
  • AI
  • AI powered Digital Assistants extract remittance data from multiple customer sources/documents in multiple formats. Machine Learning/Natural Language Processing enables the robots to “learn” where to find required data on each individual customer’s remittance format which progressively increases accuracy
  • AI powered Digital Assistants convert unstructured data into structured data (CSV file) for further processing
  • Remittance data automatically applied to open invoices by Auto-Cash engine
  • Auto-Cash engine can yield 85 – 95% hit rate
  • Digital Assistant automatically creates deductions to be routed for resolution
  • 24/7/365 operation with access from all types of mobile devices

Dramatically Increased Employee Productivity & Morale Improved AR aging profile and DSO Faster response to Customers Increased accuracy and quality of operations

A better Customer Experience & “Freed up” Staff Resources

  • digital assistants
    Improved Customer Experience/Satisfaction
  • Enterprise Digital Assistants Benefits for Credit
    Customer Loyalty
  • Digital Assistant’s Benefits for Credit
    Greater Market Share
  • Benefits of a Digital Assistant Enhanced O2C Process
    Increased Revenue & Profit

Client Challenge

Cali BambooThe client is a fast growing supplier of green building materials selling to a customer base highly dependent on vendor financing. While the client sought to provide this financing quickly while managing credit risk, their manual systems could not keep pace with growth. They needed a B2B digital credit solution to evaluate more customers quickly and increase their revenue.

Customer Value

Deployed Emagia Digital Credit Automation Solution (thecreditapplication.com) with Digital Assistant

  • Digital Credit Application with digital signatures, digital trade and bank reference checks
  • Integrated with Experian & Netsuite analytical tool; automatic credit limit decisions enabled.
  • Automated resale certificate verification process
  • Automated > 80% of Credit Vetting process
  • Scalable foundation for digital ecommerce growth

Digital Assistants (aka AI powered Digital Assistants):

  • Assist your workforce & provide information to Management
  • Engage & assist customers 24/7/365
  • Perform repetitive tasks
  • Read and extract data from documents in unstructured formats/multiple formats and convert them to structured data

AI Powered Digital Assistants utilize advanced technology:

  • Artificial Intelligence with cognitive self-learning (Machine Learning), using Deep Learning Neural networks
  • Natural Language Processing – ability to interpret text & voice
  • Enterprise Information Processing – integrate with ERP
Digital Assistants perform an automated, customer-service oriented collection inquiry and, when combined with a Customer Care Portal, can drive a completely automated Collection contact effort

AI Powered Digital Assistant:

  • E-mails collection inquiry & secures payment (via ACH, or payment card), or PTP thru interactive dialogue with customer
  • Posts PTP in Collection application
  • Engages with customers to help them make payments via ACH or credit/debit card
  • Enables 100% Portfolio collection coverage for target accounts
  • Processes customer electronic payment

Benefits:

  • Increased cash flow, lower past due AR and DSO
  • Reduced bad debt exposure
  • Greatly increased Collection productivity

Digital Assistants:

  • Automatically create deductions to be routed for resolution (customer number, invoice # & value, payment # & value, deduction # & value, dates, reason code, assigned resolver, etc.)
  • Establish unique record for every individual deduction
  • Extract reason code from customers’ vendor portal, remit advice, debit memo, email, etc. & assign it to the deduction record. “Unknown” reason code is default.
  • Store digital images of all documents
  • Execute Automatic Small Balance Write-Off
  • Match & clear credit memo or payment with open deduction via deduction #, or original invoice #

Digital Assistant Automation:

Routing – of deduction to designated Resolver based on deduction reason code:

  • Formatted message stating time period for resolution, defining resolution (credit memo or routing to Collector or alternate Resolver)
  • Full deduction record, including document images
  • Allow re-routing from one Resolver to another
  • Route credit memo request thru Approval Hierarchy

Tracking – of every deduction

  • Add every deduction record to open deduction file at “Creation” stage
  • Move deduction to “Closed” file only when it is removed from Open AR ledger
  • Record and change Resolver based on routing
  • Send reminder notice to Resolver when allowed time period for Resolution expires. Execute Escalation Protocol to Resolution Hierarchy as time elapses on unresolved deduction

Challenge:

  • AR management needed overall improvement.
  • SAP deployed in 30 countries, multiple languages

Solution:

Emagia AI Powered Digital Assistants for Deductions, Cash Application, Collections and Analytics modules

Customer Value Achieved

  • Deduction resolution cycle time reduced to 5 days
  • Auto-cash hit rate increased from 50 to 80%
  • DSO reduced 7% in 6 months

AI Powered Digital Assistants:

  • Are used by many companies TODAY !!
  • Increase productivity by 70 – 90% in manual operations
  • Enable faster response to customers
  • Improve the accuracy of transaction processing

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