FMCG companies depend on complex operations that need comprehensive and highly efficient management to reach their goals and achieve the highest benefits.
One of the challenges that FMCG companies face is managing cash collection and updating their ERP online in the best way that ensures complete monitoring of the money cycle and their earnings subsequently.
With RPA technology, we can relate today a remarkable success story, in which we served one of the largest FMCG companies in the Middle East.
The Dilemma of Cash Collection
Cash collection is to collect cash from a business or sales point that you are working with according to contracts &invoices, update your ERP applications, and do financial reconciliation. As your deals increase, your efforts to collect cash from distributors get bigger, and the process faces many obstacles which increase your operation headache and cost.
That is why big companies like FMCGs, manage cash collection through two techniques, whether hiring an in-house trained collector and finance team or outsourcing a specialized cash collection company then think about how to integrate with them which needs investment or do both.
Hire Trained Employees:
This technique has critical limitations:
- Employees will get stressed due to a multifunctional job that needs a high level of attention and patience.
- Risk of human mistakes and fraud.
- Delay due to long time process.
- Hard to be tracked.
Cash Collector Companies:
On the other hand, FMCGs companies will find some issues that delay operations:
- It is hard to integrate the cash collector apps with the company’s ERP system.
- FMCG companies can develop an integration point with each cash collector firm they are dealing with. That will take more cost and time.
- As the company deals with more cash collector firms, the process costs more.
- Hiring accountants to manage transactions from cash collector systems is not the best solution. It needs a big team for processing cash on ERP, auditing, reports, fraud and error investigations, etc.
AREEBAH Helping FMCG Company by using RPA Technology in Cash Collection
One of our customers, a regional FMCG company and one of the biggest in the Middle East, had the same problem with cash collection and decided to find a new solution that makes operations swift and highly controlled.
Our consulting team made a complete study of the case from different aspects. RPA technology was their first proposed resolution, where robotics can manage all steps needed to achieve the perfect cash collection.
How does RPA perform perfectly?
After integrating the cash collector’s system with our customer’s ERP system, robotics work as follow
