Digital World-class O2C Leaders Excel with Emagia
Exploring Autonomous Receivables Solutions for CPG Companies
AI-powered Cash Application
- Touchless invoice and remittance capture
- Fast-track ERP cash posting
- Smart automated dispute resolution
95% and more auto-match rates
AI-powered Collections
- Digital assistants to boost collections
- Automated dunning to reduce manual touches
- Quick dispute resolution to gain customer trust
85% and above current AR
AI-powered Deductions
- Proactive approach to managing deductions
- Digital assistants to speed up resolution
- Enhanced customer experience and loyalty
80% automation of manual deductions
Discover Solutions to Your Business Challenges
Autonomous Order Capture & Entry
Eliminate manual errors and accelerate order processing with intelligent validation. Seamlessly integrate orders across all sales channels for faster, more accurate fulfilment.
| Challenge | Visionary Solutions |
|---|---|
Data Inaccuracy & Manual Errors |
|
Integration Issues Across Sales Channels |
|
Business Solutions Impacted
- Integrated Order Management System
- CRM
- Data Quality Solutions
Smarter Credit Management
Slow credit approvals and inaccurate risk assessments can hinder cash flow. Leverage advanced analytics and blockchain technology to accelerate credit decisions, enhance risk evaluation, and ensure smarter, faster credit management.
| Challenge | Visionary Solutions |
|---|---|
Inefficient Credit Risk Assessment |
|
Delays in Credit Approval Process |
|
Business Solutions Impacted
- Risk Management Systems
- Credit Policy Enforcement
- Cash Flow Management
Optimized Order Fulfilment & Delivery
Inventory challenges and logistical inefficiencies lead to costly delays. With IoT-enabled tracking and AI-powered forecasting, streamline fulfilment, enhance visibility, and ensure on-time, efficient delivery across your supply chain.
| Challenge | Visionary Solutions |
|---|---|
Inventory Visibility & Demand Forecasting |
|
Logistics & Transportation Inefficiencies |
|
Business Solutions Impacted
- Inventory Management
- Logistics Optimization
- Demand Forecasting Tools
Intelligent Invoicing & Billing
Manual processes and errors in invoicing slow down payments and strain cash flow. Smart, automated invoicing powered by AI ensures accuracy, accelerates billing cycles, and improves overall efficiency.
| Challenge | Visionary Solutions |
|---|---|
Invoice Errors & Discrepancies |
|
Manual, Labor-Intensive Processes |
|
Business Solutions Impacted
- Billing and Invoicing Systems
- Revenue Recognition
- Compliance Solutions
Streamlined Payment Collection & Reconciliation
Late payments and complex reconciliation processes disrupt cash flow and increase operational burden. Intelligent automation accelerates collections, simplifies reconciliations, and ensures faster, error-free settlements.
| Challenge | Visionary Solutions |
|---|---|
Delays in Payment Collection |
|
Complex and Inefficient Reconciliation Processes |
|
Business Solutions Impacted
- Cash Management Systems
- Financial Reporting Tools
- DSO Reduction Strategies
Faster Dispute Resolution & Enhanced Customer Service
Lengthy dispute handling leads to customer dissatisfaction and delayed payments. AI-powered chatbots and predictive analytics streamline resolution workflows, improve response times, and elevate customer experience.
| Challenge | Visionary Solutions |
|---|---|
Slow Dispute Resolution |
|
Lack of Automated Customer Service Tools |
|
Document and Data Aggregation Delays |
|
Business Solutions Impacted
- Customer Service Platforms
- Claims & Dispute Management
- Write-Off Reduction Systems
DSO Trends in CPG Industry
| Year | Estimated Average DSO | Trend Insight |
|---|---|---|
| 2020 | 45 days | Baseline DSO; relatively healthy cash flow amidst stable economic conditions. |
| 2022 | 50 days | Notable uptick reflecting broader credit management challenges and supply chain disruptions. |
| 2023 | 52 Days | Continued upward trend driven by slower payment collections and reconciliation delays. |
| 2024 | 55 Days | Higher DSO reflecting ongoing pressures from economic uncertainties and operational inefficiencies. |
Consumer Packaged Goods (CPG) Industry Insights
| Metric | Estimated Value | Insight | Notes/Source |
|---|---|---|---|
| Bad Debt Write-Offs | ~$2.5 – $3.0 Billion | A significant portion of revenue is lost due to ineffective credit management and delayed credit approvals. | Industry research estimates |
| Average Days Sales Outstanding (DSO) | 15-20 days increase over target levels | Late payment collections and manual reconciliation delays are contributing to higher DSO, affecting liquidity and cash flow. | Analyst estimates based on O2C inefficiencies |
| Delayed Payment Collection Value | ~$1.8 – $2.2 Billion | The cumulative value of delayed payments has impacted working capital, requiring more intensive cash flow management and affecting overall financial planning. | Derived from payment collection challenges |
| Dispute Resolution Write-Offs | Additional ~$200 – $300 Million | Prolonged dispute resolution, particularly due to document and data aggregation delays, has contributed to increased customer service write-offs and credit losses. | Industry case studies and surveys |
Consumer Packaged Goods (CPG) Use Cases
Collections
AI-powered Worklists & Enhanced Dunning Experience
- Identify and prioritize high-risk, high-value accounts to drive smarter, more effective collections.
- Using analyst-defined parameters, the system dynamically builds a prioritized worklist for efficient collections.
- Automated communications enable a seamless, touch-free dunning process.
- Real-time synchronization with customer AP portals ensures analysts have up-to-date payment status at their fingertips.
- Collections managers gain real-time visibility into global and regional DSO trends and key performance indicators.
Credit
Mitigate credit risk and prevent bad debt with intelligent insights
- Credit Cloud empowers analysts with real-time portfolio risk monitoring, drawing from global credit agencies and public financial data in one centralized view.
- Analysts can re-score customers and adjust credit limits dynamically in response to real-time risk alerts.
- AI-powered insights predict potential order blocks, enabling credit teams to accelerate order releases and prevent processing delays.
- Configure custom credit scoring models and automate risk evaluations aligned with your organization’s unique policies.
- A centralized dashboard provides senior credit executives with complete visibility into global risk exposure.
Deductions
Leverage AI to anticipate and prevent invalid deductions
- Machine learning enables deduction analysts to identify patterns in historical disputes and automatically flag potentially invalid deductions.
- Stay ahead with instant system alerts that prompt timely action on high-priority deduction events.
- A guided, systematic process enables deduction specialists to collaborate effectively and resolve issues efficiently.
- The system enables collectors to analyze deductions, uncover underlying issues, and take preventive measures.
- Automation and instant access to supporting documents streamline the research process for deduction analysts.
E-Invoicing and B2B Payments
Automated Invoicing and Frictionless Payment Workflows
- Support customer-specific billing needs with automated invoice delivery across multiple digital channels.
- The platform enhances buyer convenience with a self-service payment experience, improving overall billing and collection performance.
- Billing managers benefit from unified workflows through direct integration with customer AP portals and enterprise accounting platforms.
- A global-ready self-service portal offers customers the convenience of choosing from 150+ supported payment formats to suit their preferred methods.
Cash Application Cloud
AI-Driven Remittance Identification
- Analysts resolve unapplied payments by cross-referencing open receivables, either through exact amount matching or by allocating to the oldest due invoice.
- Unmatched payments are automatically identified and routed for exception handling.
- Upon successful validation, the payment moves forward to the output generation stage.
Digital World-class Leaders Use Emagia Autonomous Receivables
Driving world-class efficiency in global accounts receivables operations spanning across
170+
Connected Banks
1000
Customers
90
Countries
Achieving world-class digital Order-to-Cash performance globally in 15 months
>95%
Cash app
Rates
$4B
in Receivables
44
Countries