#11 - Use Case: Adding Receivables Automation to a Legacy ERP System

Carixa Updates Legacy Accounts Receivable for $20 Billion Pharmaceutical Company

• Cash Application
• Collections
• Deduction Management
• Management Reporting
• Robotic Process Automation
• Pharma Solutions

This case study examines how a $20 billion pharmaceutical company modernized its Accounts Receivable (A/R) processes by implementing Carixa, a bolt-on solution, to overcome challenges with cash application, collections, and deduction management.

The Challenge

The company faced multiple challenges with its legacy ERP system:

• Manual Processes: Cumbersome manual processes hindered efficiency and led to operational backlogs, impacting their ability to close the books on time.
• Increased Transaction Volume: A significant merger tripled transaction volumes, putting further strain on their existing system.
• Repatriated BPO Operations: The company brought back previously outsourced BPO operations, adding complexity to their A/R processes.
• Cumbersome Reporting: Aging and cash forecasting involved manual effort, delaying month-end close processes.

Carixa Solution

Carixa provided a comprehensive solution tailored to the company’s needs:

• Seamless Integration: Carixa integrated seamlessly with their existing Peoplesoft ERP, ensuring smooth data flow.
• Automated Processes: The solution automated key A/R functions, including:Cash applicationInvoice collectionsDeduction managementReconciliation
• EIPP and Customer Portal: Electronic Invoice Presentment and Payment (EIPP) with a customer portal streamlined invoicing and payment processes.
• Robotic Process Automation (RPA): RPA was implemented to automatically access and reconcile customer debit memos and returns data.
• Workflow Customization: Workflow rules were configured based on customer class, policy, and amount, enabling tailored processes for different customer segments.

Transition Challenges and Solutions

Transitioning to the Carixa bolt-on solution involved addressing key challenges:

1. Data Migration:
2. System Integration:
3. Process Mapping and Optimization:

Impact

Implementing Carixa delivered significant improvements:

• Increased Efficiency: Carixa automated the processing, collection, and settlement of one million invoices annually, supporting the company’s growth.
• Reduced Manual Effort: Reconciliation automation eliminated a previously burdensome manual process.
• Improved Metrics: The company significantly reduced Days Sales Outstanding (DSO), eliminated backlogs, and achieved timely A/R book closures.

This case study demonstrates the transformative potential of transitioning from a legacy A/R system to a bolt-on solution like Carixa. By addressing data migration, system integration, and process optimization, companies can achieve significant improvements in efficiency, accuracy, and overall A/R performance.

Contact us today for information on how Smyyth + Carixa can work for you!