Boost o2c efficiency with digital assistants - Emagia Gia
- 1. Boost O2C Efficiency with Digital Assistants
- 2. • Introduction • What are Digital Assistants? • Digital Assistants’ Benefits for: • Credit • Collections • Cash Application • Deductions Processing • Customer Success Stories • Conclusion • Questions Agenda
- 3. 3 Introduction • Artificial Intelligence (AI) powered Digital Assistants can perform 70 to 90% of manual operations in a process, which delivers enormous efficiency improvements. • They 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.
- 4. 4 What Are Digital Assistants? • 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
- 5. 5 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 Digital Assistants’ Benefits for Credit
- 6. 6 Digital Assistants’ Benefits for Collections • 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
- 7. 7 Digital Assistants’ Benefits for Cash Application • 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
- 8. • 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 8 Digital Assistants’ Benefits for Cash Application
- 9. AI Enabled Digital Assistants extract remittance data from multiple customer sources with multiple formats, such as: • Customer Vendor Portals • Your own EIPP Portal populated by your customers • Excel/PDF files and statements from customers and lockboxes • EDI 820 or BAI2 transmissions from customers 9 AI Enabled Digital Assistants can auto post cash receipts to right invoices • Integrate with bank lockboxes and your own AR and Collection modules and with ERP system • Contains its own auto-cash engine (applies based on invoice, PO or sales order #) • Enables pre-set tolerance levels for matching payments to open invoices • Outperforms RPA when dealing with multiple unknown document formats Digital Assistants’ Benefits for Cash Application
- 10. 10 Digital Assistants’ Benefits for Deductions 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 #
- 11. 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 11 Digital Assistants’ Benefits for Deductions
- 12. 12 Benefits of a Digital Assistant Enhanced O2C Process 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 Improved Customer Experience/Satisfaction Customer Loyalty Greater Market Share Increased Revenue & Profit
- 13. 13 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 Customer Success Story – Global Medical Products Supplier
- 14. 14 Case Study - Leading Building Materials Dealer Client Challenge The client is a fast growing supplier of building materials selling to a customer base highly dependent on vendor financing. While they 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 • Now processing increased volume of credit applications on timely basis • Scalable foundation for digital ecommerce growth
- 15. Conclusion 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
- 16. If you have any questions or comments about this session, please let us know in the chat box or write to us at info@emagia.com Orders Credit Cash Application Collections Deductions Payments Invoicing