In this Acceleration Case Study, learn how Land O’Lakes, an agriculture co-op, was able to streamline deductions management with an automation solution. After a team restructuring, the company was looking to maintain excellent customer experience, especially to the 12 largest customers whose contributions account for half of their yearly deductions. By partnering with HighRadius, the company was able to manage and interconnect existing tools: Revitas for Deductions, Oracle JDE ERP, and Stellent for document management. Read how they implemented new automation software for a better customer experience and low integration costs.
Business Challenge – Finding a Way to Automate Deductions
Land O’Lakes is an agricultural cooperative, specializing in the dairy industry. The company needed to find a better way to manage a high volume of deductions. Previously, two different teams managed deductions involving pricing, shortages, and trade promotions. They had to handle over 100,000 deductions each year, as 21% of their customers claimed deductions. Their 12 largest customers contributed to over half of the deductions. The biggest challenge for the company was improving the customer experience for these top customers.
Automating the deduction process was essential. This was due to analysts interacting with three to four disconnected systems. One analyst even averaged 22 deductions per day. These analysts had to manually gather backup documents from various sources, such as emails, website portals, lockbox files, EDI, and paper documents. Because it was spread across several systems, a major challenge was finding a way to streamline the deductions process.
These systems included Revitas for Deductions, Oracle JDE ERP, and Stellent for document management. Gathering this information was a complex and time-consuming process. For example, an analyst had to apply cash within Oracle JDE ERP while the deduction was automatically created in Revitas. Afterward, a deduction analyst must research the deduction process in Revitas to determine validity, as they create a denial letter in Revitas if it’s not valid. They use Stellent for uploading data backups and maintaining communications with customers. If a deduction is valid, they create an apply resolution in Revitas and it’s posted in Oracle JDE ERP.
Land O’Lakes needed to find a better way to manage these interconnected systems. A top priority was using a solution to easily blend these systems. Additionally, they needed to deploy the solution while maintaining low integration costs. It’s also required to be compatible with the most recent software while eliminating low-value manual tasks.
Software Solution – HighRadius
HighRadius is a Software-as-a-Service (SaaS) company. It uses Autonomous Systems and AI technology to help businesses automate various tasks. By choosing to partner with HighRadius, it enabled Land O’Lakes to streamline the deduction process. This was possible by having all of the information in one place. A deduction analyst now begins the day by checking an automated worklist that shows the deductions assigned for each person. Afterward, the analysts can start immediately resolving deductions. This saves everyone a lot of time and effort.
Using HighRadius also made it possible to use the same system for managing valid and invalid deductions. A valid deduction is automatically resolved within the system while a disputed deduction is sent to the correspondence tab in the same window. Using the correspondence tab makes it possible for analysts to obtain additional documents for resolving.
In the header, they capture basic details involving the payment for the deduction. Beneath the header, they have listed multiple tabs to assist the analyst in closing a deduction. For a much quicker resolution process, the system automatically captures claim information and links it to each deduction.
The implementation of HighRadius made it possible to streamline the deduction process and improve efficiency. Automation now handles the process of finding backup documents, coding deductions, and populating claim data. It also automatically populates various deduction attributes, whether the customer’s name, planning account, reason code, priority, or deduction claims line-item data.
Once a deduction is ready for research, a deduction analyst will take over the remaining process. Using HighRadius boosted productivity for Land O’Lakes within three months. Other benefits include a significant decrease in manual work, improved analyst efficiency, and increased broker confidence.
Choosing to partner with HighRadius resulted in an 18% increase in the number of deductions resolved, two million dollars in closed reductions, and a 9% reduction in Days Sales Outstanding (DSO). All of these benefits further highlight the critical role of using HighRadius to automate a variety of tasks. Land O’Lakes plans to continue to use this innovative software to better meet the needs of their customers by further expediting the entire deduction process.