Reducing Time Spent Managing AR by 50% at an Innovative Packaging Company
Rocket Industrial’s accounts receivable team is operating more efficiently than it ever thought possible. By implementing a solution that automates reports, allows customers to autopay, and provides sales teams with access to customer accounts 24/7/365, Rocket Industrial has reduced time spent managing receivables by 50%.
The elimination of tedious, low-value accounts receivable tasks while providing the team with customer data and key metrics at their fingertips improved Rocket Industrial’s ability to scale. The relationships between finance and sales, and between Rocket Industrial and its customers is now stronger than ever.
THE STARTING POINT
Rocket Industrial had a highly manual AR process that wasn’t able to keep up with the company’s growth. Its ERP had limitations in how customer statements could be prepared and delivered. The results were hours spent each month pulling information to send to customers. The sales team required weekly reports of their accounts. More hours wasted running aging reports per sales person every week and then individually sending it out.
In order to determine collections workflow, the finance team ran a weekly report of all their past due accounts and then manually waded through that list to figure out which accounts were new. Although they had a commitment to contact accounts at 10 days past due, with the AR Manager’s time spent pulling and filtering reports, they weren’t reaching customers until 15 days past due or more.
There was also little visibility into performance metrics. DSO was calculated manually using inputs from multiple systems.
Although DSO was holding steady at around 33 days, the finance team had reached a point where they could no longer manage the workload with the current resources. The Finance Director had to make a choice: hire another person, find efficiencies, or do nothing and start to see DSO slip.
Rocket Industrial implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, Rocket Industrial has instant access to customer data and key metrics, such as DSO, anytime and from anywhere. Weekly emails to the sales team now take two minutes instead of hours and customer statements happen automatically, requiring none of the AR Manager’s time.
“Who doesn’t want to make their life easier?”
Traci Leffel, Director of Finance
Where there use to be tension, ARC has helped Rocket Industrial’s finance team build a true partnership with its sales team by providing access to customer accounts and facilitating communication.
One area of efficiency realized by implementing ARC that surprised even the Finance Director was how much time had previously been spent chasing small customers. With ARC, human intervention is eliminated from the process as small customers can set-up autopay.
“We had one account that was constantly slow paying us. We actually had to put them on credit hold. We were spending a couple of hours every month trying to reach them, trying to get them to pay and get caught up. ARC has eliminated all of that struggle. We put that customer on autopay and they have literally not been a problem since.”
Traci Leffel, Director of Finance
When comparing ARC to the alternative solution of hiring an additional team member; ARC is always “on”, it never takes a sick day, it costs less per year than an FTE, it improves visibility and flexibility and, most importantly, it allows Rocket Industrial to scale.
Industry: Manufacturing and Distribution
Invoices per month: Thousands
ERP: Sage Business Cloud Enterprise Management
Rocket Industrial is an innovative packaging company based in Wisconsin. Founded in 1957 as a family-owned packaging tape company, Rocket Industrial has expanded into related industries as it increased in size. Now offering alternatives to the waste-intensive past as it strives to “Package with Less”.
Got to the point where it couldn’t manage the growing business with current resources. Needed to hire an extra person or find efficiencies.
Shortlisted and demoed 4 platforms.
Selected ARC because of the flexibility it offered Rocket Industrial’s customers.
Ran an internal campaign with the sales team to show them how to use ARC and outline the information they now have access to. 93% of customers invited to ARC have adopted it.
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