Case Studies
US Foodservice Case Study
* These results were presented at the Association for Financial Professionals Annual Conference on November 8, 2010, in San Antonio, TX.
A/R Challenges
- 50% of payments received, processed and deposited manually at distributed locations
- Processing created operational redundancies between branches & the shared services department
- Low hit rates due to manual lockbox data entry
- Cash application averaged two days
Goal
The initiative to improve U.S. Foodservice’s over-all accounts receivable process had these specific goals:
- Reduce internal and external processing cost
- Reduce time to post for cash application
- Centralize payment processing to the shared services facility
- Increase employee utilization and efficiency
About U.S. Foodservice
U.S. Foodservice is one of America’s largest foodservice distributors, distributing food and related products to more than 250,000 customers, including restaurants, hospitals, hotels, schools, and governmental institutions.
U.S. Foodservice:
- Employs 26,000 team members
- Operates more than 60 distribution centers
- Offers more than 300,000 products from a wide variety of national brands and a robust line of its own exclusive products
- Operates a fleet of more than 6,000 refrigerated tractor trailers
Solution
OPEN SCAN® Receivables Process Management Solution
Key Results
- 40% reduction in total order-to-cash operating cost
- Reduced time to post by 1 day
- 100% Elimination of bank lockbox data entry costs
- Project met Return on Investment (RIO) goals
- Salesman reports are now standardized and automated
- Dramatic reduction of branch resources required to process payments
Additional Benefits
Improved customer service in collections and sales by increasing accuracy and timeliness of cash application
Utilization of the OPEN SCAN database for valuable historical reporting of cash application information
Consolidated banks from 12 down to five (5)