Lockbox Automation Using Artificial Intelligence and Robotics Mike Mumford Senior Director, Business Technology, Finance SYSCO Vikram Gollakota Client Solutions Director HIGHRADIUS
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Lockbox Automation Using
Artificial Intelligence and RoboticsMike Mumford
Senior Director, Business
Technology, Finance
SYSCO
Vikram Gollakota
Client Solutions Director
HIGHRADIUS
Agenda
About Sysco
Receivables Processing at Sysco
Challenges and Considerations
Solution: Sysco and Artificial Intelligence
About HighRadius
Summary-Sysco
About Sysco
Global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments
Products also include equipment and supplies for foodservice and hospitality
65,000 Associates
300 Distribution Facilities
500,000 Customer
$55,000,000,000Sales Generated
Receivables Processing at Sysco
Receivables Processing at Sysco
Payment Types– Cash
– Electronic Payments
o ACH pull
o ACH push
o Wire
o Credit Cards
– Checks
o NET deposits
• Customer sends checks
• Imaging Associate team scans checks and shares with Bank and A/R team
o Remote deposits
• Marketing associates deposits to the bank
Remittance– Remittance information not used for cash application
– Cash application done based on pre-defined rules and algorithms
Check Processing ( NET Deposit)
Challenges in Check Deposits
Customer sends checks
Imaging Associate
scans checks multiple times
Bank
A/R team AR batches created
Auto-Cash Algorithms used to close invoices
Unmatched invoices flagged
Exception Handling
Cash Posted
Challenges in Check Deposits
Customer sends checks
Imaging Associate
scans checks multiple times
Bank
A/R team AR batches created
Auto-Cash Algorithms used to close invoices
Unmatched invoices flagged
Exception Handling
Cash Posted
• Low cash application hit-rate – 30-40%
• Check and remittance scanned separately
• Remittance information not used – algorithms resulted in
misapplication
• Customers had to send separate payments for each
operating companies
Remote Deposits
Challenges in Remote Deposits
Customer Marketing Associate
Enters remittance data into Sysco Account
Manager Application
Scans checks using
bank’s mobile Application
Bank starts processing
the check
Bank generates
Remote Deposit
Reports
Treasury generates
Treasury Report
Downloaded
Converted to
Email Remittance format
Auto-Cash Algorithms used
to match
payments and remittances
Exception
Handling
Cash Posted Converted and
Uploaded in
ERP (SUS)
Match for any
returned checks/
wrong payments
A/R Team
Challenges in Remote Deposits
Customer Marketing Associate
Enters remittance data into Sysco Account
Manager Application
Scans checks using
bank’s mobile Application
Bank starts processing
the check
Bank generates
Remote Deposit
Reports
Treasury generates
Treasury Report
Downloaded
Converted to
Email Remittance format
Auto-Cash Algorithms used
to match
payments and remittances
Exception
Handling
Cash Posted Converted and
Uploaded in
ERP (SUS)
Match for any
returned checks/
wrong payments
A/R Team
• Remittance information not used for cash application
• Multiple payments for different operating companies
increased the complexity
• Payments from multiple banks
• Additional time and effort by sales team to process
payments
Electronic Fund Transfer (EFT)
Deposits Processing
Challenges in EFT Processing
Customer Bank Bank generates Remote Deposit
Reports
Treasury generates Treasury Report
ACH/Wire Deposits
Create Payment line items in ERP
Cash Posted A/R Team
Email EDI Portals
Identify & DownloadRemittances
for each payment
Remittance
Download and Identify all ACH/Wire Payments
Challenges in EFT Processing
Customer Bank Bank generates Remote Deposit
Reports
Treasury generates Treasury Report
ACH/Wire Deposits
Create Payment line items in ERP
Cash Posted A/R Team
Email EDI Portals
Identify & DownloadRemittances
for each payment
Remittance
Download and Identify all ACH/Wire Payments
• High volume of manual work for processing electronic payments
• Manually create payment line items
• Aggregation of remittance information multiple sources for
records/repository
Challenges and Considerations
Key Challenges
No centralized cash application process
Manual processing of ACH payments
Customers pay for each operating company separately- limited visibility into receivables status at an organization level
Remittance information not used - low cash application hit rate (30%-40%)
Multiple bank accounts across operating companies
Checks and remittances scanned separately multiple times
Considerations
Centralized cash application with decentralized scanning
Scale to volumes of Sysco’s payments and remittances
Effectively process remittances across all formats
Allow one payment across 72 operating companies
Process checks and remittances in one go
Sysco & Artificial Intelligence
Cash Application Cloud
CUSTOMERSINTERNET/CLOUDSYSCO
Cash Application Cloud
WebAggregation
OCR
X
Email Parsing
EDI
Invoice Matching
Deduction Management
Bank
Rem
itta
nce
Ad
vic
eP
aym
en
t
EDI
Checks
EFT
Customer Portals
v
v
v
v
vERP
BAI 2 or EDI 823
Open A/R
Review and Clear
Exceptions
AR Matching Data Aggregation
Customers
Value Addition
Centralized Cash Application Processing
One Check
85%+ Cash Application Accuracy
Check Scanning Efficiency
o Uniform cash application process across all operating companies
o Reduce need for individual bank accounts
o Customers can pay using one check for obligations across operating companies
o To apply cash seamlessly
o Use customer remittance to improve cash application accuracy and efficiency
o Scan the checks and remittance backups only once
o Use the same scanned images for bank deposits and remittance extraction purposes.
Results
“For the very first time in our history,
we are using remittance information
for cash application!”
Results with Artificial Intelligence
Checks
EFTs
Remote
Deposits
Straight-through
payment processing
Cash Application Cloud
85%
• Productivity increase for the A/R team
• 1 Payment across multiple operating companies
• Accurate cash application using remittance information
About HighRadius
HighRadius at a Glance
300+ Clients. 125 in last 2 years. #1 in Fortune1000 market
$500 Billion of Receivables processed annually
Integrated Receivables Platform for the entire credit-to-cash cycle
FinTech cloud-based software company. Founded in 2006. HQ in Houston, Texas
Integrated Receivables Platform
Representative Customers List
650+ employees globally
Integrated Receivables Platform
CreditCloud
EIPPCloud
Cash AppCloud
DeductionsCloud
CollectionsCloud
………
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AI for AR
AR+AP Network
Summary: Sysco
Past Present Future
Decentralized cash
application process
Multiple payments for
different operating
companies
Remittance information not
used for cash application
Separate scanning of checks
and remittance
E-payments and checks
processed easily without error
Centralized cash application
across all operating
companies
One check across multiple 72
operating companies
Single process for scanning
checks and remittance
• Mobile application for
marketing associates for
faster cash application
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