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CASH APPLICATION AUTOMATION SUCCESS STORYSUCCESS STORYKEURIG DR PEPPER REVEALS THEROLE AUTOMATION PLAYED FORTHEM, SAVING 2.5 MILLION IN ONEYEARLearn how Keurig Dr Pepper brought their payments processing in houseto save millions of dollars in their annual run rateIMPACT ACHIEVED AT KDP:98%Automatic (no-touch) CashApplication92%of short Payments IdentifiedAutomatically to save coupledays of work for the Team56%FTEs from the cash applicationteam reallocated to other A/Roperations despite a 19%increase in the volume ofpaymentsWe have seen financial services costs decline by 2.5Mwhile the volume, quality, and productivity increased.Coleen Zdrojewski,Vice President Financial ServicesDr Pepper Snapple Group Inc.1 HighRadius. All rights reserved."
ABOUTLEADING BEVERAGE COMPANY IN NORTH AMERICA 11.6bn Total RevenueKeurig Dr. Pepper is the first to bring hot andcold beverages together at scale. Formed in2018 with Keurig Green Mountain and Dr. 27kPepper Snapple Group merger, Keurig Dr.8thKeurig Dr Pepper (KDP) operates 22Total EmployeesLargest Food andBeverage Company inthe USPepper has annual revenue of over 11.6 billionand nearly 27,000 employees.manufacturing and bottling facilities andmore than 100 warehouses and distributioncenters across North America.2 HighRadius. All rights reserved.
BEFORE AUTOMATIONHEAVY RELIANCE ON 3RD PARTY VENDORS FOR CASHAPPLICATIONThe financial services team at Keurig Dr Pepper relied on 3rd partyvendors, outsourcing their Cash Application and other A/R functionsto control costs. This led to limitations such as restricted access andcontrol. Moreover, outsourced contracts prevented shifting to otherplatforms or discontinuation of services before the contract period.A lack of metrics and statistics made tracking outsourcedresource productivity challenging, causing inconsistencies acrossprocesses and creating complications for the A/R team. They thusdecided to reevaluate whether they wanted to continue theircontract or more operations in-company to have more powerand visibility over their processes.BETTER CONTROL WITH INSOURCING, BUT NEWCHALLENGES IN SIGHTKeurig Dr Pepper took a leap by deciding to move their cashapplication process in-house, but new challenges appeared. Thebiggest issue the teams faced was that they were strapped for timeto cover all critical accounts.In the case of check images and remittances flowing in throughdisparate sources for e-payments, the team had to link everypayment and remittance and code deductions manually.The A/R processes were utterly manual, and there were noworklists incorporated to help analysts prioritize work, leading totime-consuming, inefficient, and wasteful processes.3 HighRadius. All rights reserved.
CHALLENGES POST BRINGING CASH APPLICATIONOPERATION IN HOUSEWith rapidly progressing sales, the cash application team atKeurig was having a hard time touching all incoming payments.There was a lot of delay, and all the manual work involved inapplying cash led to an inefficient process and FTE burnout. Manual Remittance Capture From Different Sources:Analysts had to spend a lot of time on retrieving remittancedata from emails and downloading them from customer webportals. Disparate Data Sources for Payment Capture: Customerspaid through various payment formats including checks,ACH, and wire. Analysts had to manually link every paymentand remittance and coding deductions manually.CALL FOR THE RIGHT SOLUTIONKDP wanted a solution that could eliminate non-value tasks through automation.They wanted a solution that could help them automate globally, with minimalneed for constant revision and to handle upgrades in the future without causingany hassles. They required centralized infrastructure and, most importantly, a wayto cut down on draining manual tasks.4 HighRadius. All rights reserved.
TRANSFORMATION STARTSACING IN-HOUSE OPERATIONS WITH A PLUGAND PLAY SOFTWAREBy leveraging technology to automate their processes,KDP achieved operational excellence by improvingstaff utilization and enhancing productivity. Automated Remittance Capture: The cashapplication team at Keurig Dr Pepper was able tosave on time and resources lost in manualremittance aggregation with automaticaggregation of remittance data without having todownload them from web portals or emails.Furtherthe Multi-OCR Engine auto-captured accurateremittance data from checks. Automated Invoice Matching with SeamlessCapture of Payment Information: The solutionenabled the team to automatically matchinvoices with the payment. All critical paymentinformation such as payer name, bank fees,currency was captured to ensure faster paymentremittance linking.It was once an error-prone and hefty task to deal withthe 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.5 HighRadius. All rights reserved.
AFTER AUTOMATIONYIELDING GREAT RESULTS WITH HIGHRADIUSThe cash application solution was designed to provide a cohesiveexperience for the financial workforce at Keurig Dr Pepper. Oncethe solution was implemented, they realized immediatequalitative and quantitative benefits.IMPACT ACHIEVED98%92%Automatic (no-touch) CashApplication75%of short Payments IdentifiedAutomatically to save couple days ofwork for the Team56%Increase in Productivity of TeamFTEs from the cash application teameven in an uncertain economicreallocated to other A/R operationsclimatedespite a 19% increase in the volumeof payments6 HighRadius. All rights reserved.
GAINING GLOBAL CONTROLS AND VISIBILITY WITH CASHAPPLICATION SOLUTIONThe solution also helped them achieve some exceptional benefits to support theirglobal operations: Fully Automated data-based system to reduce the manual workload andimprove efficiency. Real-time visibility of the payment statuses to other A/R teams like credit andcollections facilitating better customer experience Standardized processes across geographies lead to fewer resources spent onrepetitive training.DOING MORE WITH HIGHRADIUSWith the effective implementation of the cashapplication solution across business units,Keurig Dr Pepper expanded its scope of A/Rautomation by further leveraging the claims andPOD functionality of the Deduction solution byHighradius.With that Keurig Dr Pepper was able to helpanalysts focus on the research by undertakingheavy manual lifting like retrieving andattaching backup documents for them.With this they were not only able to save about30% of the analysts’ time but also reduce theirDSO by about 25%7 HighRadius. All rights reserved.
ABOUT HIGHRADIUS CASH APPLICATIONSOLUTIONHighRadius Cash Application Software is the most comprehensive solutionavailable for automating cash application across all payment and remittanceformats. Driven by customer-specific business rules, automated on-invoice hitrates of 98% are typical with the solution. An AI-based solution available assoftware-as-a-service, Cash Application Software is easy and cost-effective todeploy and maintain.Discover More Benefits of HighRadiusCash Application SolutionThe AI-Powered Receivables Automation Platform Trusted by 700 Industry Leading CompaniesLEARN MORE9
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 .
