Workday is a powerful tool that is designed to help customers manage a number of financial operations. With that in mind, it can be tempting to believe that you don’t need any other tools when it comes to vital jobs like accounts receivable.
For a time, OneSpan — a cyber security technology company— believed the same, using the software to manage the entire order to cash (O2C) process. It wasn’t until they took a closer look at their performance that they uncovered the limits of the software, identifying issues that left them vulnerable to late payments and poor customer experience.
Uncovering the Challenge
When Ryan Madden joined OneSpan as the Senior Director of Financial Operations, the firm was using Workday to manage its accounts receivable. He quickly set about assessing the software’s performance and immediately identified areas that needed improvement. He found that while Workday allowed him to send out customer communications, much of the process was manual and took time to create. In addition, there was little to no visibility into who had received and registered the email.
He also found that, while Workday supplied a range of reporting capabilities, the data required significant scrubbing before reports could be analyzed and used for actionable insights. This made identifying at-risk customers challenging and fed late payments. It also made it hard to work collaboratively with sales. Because the system lacked full transparency, communicating decisions on accounts — such as putting customers on credit holds — was a process that frustrated both parties.
These issues were exacerbated by the rise in remote work which meant that the accounts receivable team had to find new ways to manage customer relationships virtually.
The Impact of Automation
Quadient AR integrated with Workday, centralizing all the company’s financial data onto a single platform. As a result, employees were better able to self-manage while working remotely. Real-time data updates and transparency meant that team members no longer needed to wait on each other to access vital information. This data transparency also allowed Madden to monitor AR data and stay ahead of potential risks.
“Using a single system to track work, save notes and set tasks for myself and my team is a game changer. We can’t remember what it was like working without it.”
Ryan Madden, Senior Director of Financial Operations, OneSpan
Automated workflows improved customer communications as well as the dunning process, eliminating the need to manually craft emails. In addition to saving the accounts receivable team time, the software also gave them visibility into whether their communications reached the intended target, which emails were opened, and if emails bounced. Using that information, they were able to refine and improve the collection process.
Customizable reporting allowed OneSpan to quickly access the information that was relevant to them, and gain insights from it. Predictive analytics not only provided them with a customer risk assessment but gave them accurate estimations of when a customer was likely to pay an invoice and how much money they could expect to flow in at any given time. Using that information, they were able to better prioritize accounts and facilitate strategic planning.
Because reports in Quadient AR provide an unlimited number of users, they can quickly be shared with anyone who needs to access them. This allows for greater interdepartmental coordination, improving the accounts receivables relationship with the sales department. They were able to regularly receive updates on customer payment behavior, which then informed the sales decisions made.
Externally, these changes also boosted customer satisfaction. Automated communications allowed customers to remain regularly informed and a self-service payment portal provided customers the ability to make fast, easy payments on their own schedule.
Undeniable Results
The impact of integrating Quadient AR and Workday was immediate. Using the solution, the firm quickly gained greater visibility into emails and communications, a faster dunning process, and improved reporting capabilities. These benefits combined to produce impactful, long-term improvements:
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Days sales outstanding (DSO) reduced by 13 days.
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Average days to pay decreased by seven days, a reduction of more than a working week across the company’s entire AR portfolio.
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Unparalleled visibility across AR reporting and collections.
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Improved customer experience and internal relationships.
“With Quadient AR, it’s like we have another person on our team! The platform has helped improve efficiencies, which has been key to reducing our DSO. Customers can access their accounts, employees know exactly what to focus on, and we have complete visibility into the effectiveness of our collections. I love it.”
Ryan Madden, Senior Director of Financial Operations, OneSpan
Discover the essential features every accounts receivable solution should have in our eBook: The Path to Greatness: 4 Essential Features of an Exceptional AR Solution.
