As a manufacturing CFO, optimizing cash flow and reducing Days Sales Outstanding (DSO) are critical.
Traditional accounts receivable (AR) systems, even when automated, often fall short—requiring manual oversight and leading to delays. Embracing autonomous AR, powered by AI, can revolutionize your cash application process, enhancing accuracy and freeing up working capital.
Limitations of traditional AR systems
Manufacturers face unique challenges: high transaction volumes, diverse customer payment behaviors, and complex remittance data. Rules-based AR systems struggle with this complexity, leading to:
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High exception rates: Approximately 29% of AR transactions require manual intervention.
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Delayed cash application: On average, it takes 19.37 days to apply cash fully.
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Financial losses: Over $25,000 annually lost due to reconciliation errors.
These inefficiencies tie up resources and hinder financial agility.
Benefits of autonomous AR
Transitioning to autonomous AR offers:
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Reduced manual intervention: Up to 95% of reconciliations handled automatically.
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Lower exception rates: Dropping below 12%, minimizing delays.
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Faster cash application: 75% quicker than legacy systems.
This leads to improved cash flow and operational efficiency.
Real-world success: Raney's Truck Parts
As a global food manufacturer, Schreiber Foods achieved measurable results by adopting autonomous processes across finance:
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Rapid global rollout: Launched cash application automation across global operations in just six weeks.
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End-to-end digitization: Streamlined AR and finance operations as part of a broader Autonomous Finance strategy.
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Strategic scalability: Built a future-ready finance organization that supports acquisitions and shared services at scale.
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Increased efficiency: Reallocated resources to higher-value tasks by eliminating manual data entry and reducing delays.
These outcomes demonstrate how Schreiber’s adoption of OpenEnvoy enables faster cash flow, greater accuracy, and more strategic impact from AR.
Implementing autonomous AR: a 6-week plan
Deploying autonomous AR can be streamlined:
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Weeks 1–2: Integrate AI-driven payment matching.
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Weeks 3–4: Enable autonomous reconciliation.
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Weeks 5–6: Activate forecasting tools for comprehensive cash flow insights.
This phased approach ensures minimal disruption and rapid realization of benefits.
Why choose OpenEnvoy
OpenEnvoy offers:
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Scalability: Processes over 14,000 transactions per hour.
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Accuracy: Achieves 99.97% match precision.
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Seamless integration: Pre-built connectors for major ERPs, reducing IT workload.
These features make it an ideal choice for manufacturing CFOs seeking efficiency.
Transform your AR process
Embracing autonomous AR can significantly enhance your financial operations. To explore how OpenEnvoy can assist, schedule a 15-minute demo and discover the potential for your organization.
For further insights, consider reading Real Stories of Autonomous AP at Manufacturing Companies and 100% Capture Delivers Both Speed and Control in Finance Automation.
