Electronifying Your Accounts Receivable Process

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Electronifying Your Accounts Receivable Process
Presented by Lucy Tilenni National City
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Did You Know...

• It costs the average business 20 to file or
  retrieve paper docs1
• It costs 120 to find misfiled docs and 250 to
  recreate one2
• 10.4 of all invoices are disputed3 (higher in
  many industries)
• Invoice disputes cost appox. 20 per invoice4
• The diameter of the wheel on TVs Wheel of
  Fortune is 86

Sources 1 2 34 Gartner Group
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Are You Ready to Electronify?

• Do You
• Want to reduce costs associated with the invoice
  cycle?
• Want to improve your Days Sale Outstanding
  (DSO) and reduce float?
• Want to streamline processes and improve
  efficiency?
• Want improved staff productivity and relations?
• Want immediate access to your receivables?
• Want to improve customer satisfaction?
• Who Wouldnt??

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What Electronifying will do for You

• Allows a means of streamlining daily processes
• Provides a state-of-the-art process to view and
  save your information
• Web-based image delivery
• Bulk image file delivery
• CD ROM image archive
• Save you time, money and resources
• Help you improve external and internal customer
  satisfaction

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Benefits

• Reduce Costs
• Paper storage retrieval
• Research, overtime or temporary labor costs
• Data entry
• Improve efficiency
• Re-deploy or cross train staff
• Data file integration improves hit rate
• Improved internal and external customer service
• Financial return
• Reduce DSO
• Quick time-to-market
• Security
• Administrate your own users by lockbox

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How It Works
Paper Invoice
Company
Trading Partner
Remits invoice check to Bank
Bank

• Collection w/ unique zip code
• Image capture Web delivery
• Key data for auto application or Image Indexing
• Deposit funds
• Customized file transfers
• CD ROM storage

Bulk image file
Web image delivery
Remittance data
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Plot Your Business Your Customers
EDI
EDI/ E-Lockbox
E-Lockbox
Majority in middle
Technology
Lockbox
Lockbox/ E-Lockbox
Paper
Invoice Volume
Low
High
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How to Get Started

• Know your customer
• Market segmentation
• Sales size, industry, technology, relationship
• Buying and payment processes and patterns
• Level of technology (EDI, ERP, Integrated)
• Efficiency of workflow and data application
  (manual?)
• Your relationship with your customers
• Know your internal costs
• How many file cabinets are you filling up a month
• How many hours are you spending applying cash or
  researching payment or credit issues
• Calculate cost benefit

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How Can You Make it Work?

• Make a plan and stick with it
• Communicate shared benefits with other areas
• Credit / Collections / Sales
• Shipping
• Customer Service
• Create an implementation strategy
• Research providers
• Gauge acceptance or potential internal training
  gaps
• Document client payment patterns
• Document historical processing problems
• Educate Decision Makers Win Supporters
• Explain process and cost of electronic vs. paper
• Outline benefits (DSO, process efficiency,
  research, images)
• Apply benefits to workflows and determine cost
  savings

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What to Look For

• A Partnernot just a Vendor
• Defined business plan and market strategy
• Knows your business -- not just flashy technology
• Will help you in development and implementation
• Multiple levels of service
• Flexible, but defined products
• Robust functionality and reliable equipment
• The ability to be Customizable based on your
  needs
• Ability to work with your internal systems and
  processes
• Strategic technology fit
• Use your business plan to guide decisions
• Providing your information quickly w/o additional
  software
• Find those partner(s) that fit your needs

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Servicing the Entire Organization
AP
CFO Purchasing Accounts Receivable Accounts
Payable Customer Service Collection/Credit
Claims
Order Entry
Shipping
Procurement
Inventory Mgt
Service
Treasury
AR
ERP
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About National City

• 99BN asset financial services company
• Founded in 1845 and headquartered in Cleveland,
  Ohio
• Comprehensive TM services
• Image Processing
• Web Delivery
• Payment settlement
• Information reporting
• Transaction initiation
• Investments
• Comprehensive Receivables solution in Chicago, IL
  Cleveland, OH

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National Citys ARC Solution

• Accounts Receivable Centers in Cleveland and
  Chicago
• State-of-the-art image capture and processing
  equipment
• All documents imaging capabilities
• Check / Invoice / envelope / other documents
• Available on-line within minutes of processing
• Access images via web access for 91 days, w/
  user-defined index fields (customizable)
  long-term on-line archive also available
• Bulk image file for integration w/ back-end
  systems
• CD-ROM Archive (daily, weekly or monthly)

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Questions