Reducing DSO by 59% At One of Canada’s Largest Media Companies
Assessed the impact their manual accounts receivable process was having on labor and payment delays
Metroland Media is one of Canada’s largest media, publishing and distribution companies and operates a large portfolio including physical newspapers, magazines, and digital publications.
Metroland Media has dramatically transformed their organization. By implementing a solution that, among other things, makes it easier for customers to do business with them, they have improved customer satisfaction, while getting paid faster. In year one, Days Sales Outstanding (DSO) for on-line payments was reduced by 59%. Customers adopted quickly to the new solution and by automating many of the accounts receivable processes, Metroland’s finance team has been able to refocus their efforts on high value work.
The Starting Point
Metroland had an invoice delivery problem. Each year, they issued well over 1,000,000 invoices to advertisers. Invoices that were predominantly sent via email and required manual processing. To make things more difficult, these invoices were often accompanied by a tear sheet: a page that proves to the advertiser that their ads have been published as agreed. These tear sheets created a challenge as mail servers would reject the attachment resulting in invoices going undelivered. Addressing these problems as they occurred required a lot of time from Metroland’s Accounts Receivable team. Receiving payments at Metroland was another highly manual process. Advertisers needed to speak to the AR team in order to initiate payment which required time and resources from Metroland. Customer experience was negatively affected by the payment process as advertisers weren’t able to pay on their own time.
With challenges in delivering invoices and receiving payments, Metroland needed to find a better way.
“An overwhelming number of customers said it was an easy, intuitive, and quick process. Within minutes of sending the first set of 900 or so invitations, customers were already signing up and our first payment came that very day. We didn’t hear from anyone having difficulty with the experience of using VersaPay.”
Business Systems Manager
Metroland implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, Metroland streamlined their AR processes, created a better experience for their customers and ultimately started getting paid faster.
ARC allows Metroland customers to manage their accounts online in an easy-to-use interface. With ARC’s ability to accept payments online, customers can pay their invoices 24/7 without needing to contact a Metroland representative. Payments that were previously handled manually can now be automated and matched to invoices directly, resulting in seamless cash application.
Metroland’s roll-out of VersaPay ARC has been a success, with many of their customers sharing very positive feedback about the online invoicing and payment portal.