Rico cut DSO by 12 days and automated cash flow forecasting with Alevate AR
5 min read
Published on 11-09-2024
- Industry: Wholesale Distribution
- Headquarters: United States
- Founded: 1944
"A nimble standardized product that can be tweaked to make it a full solution for customers.” - Navin Eric, CFO
The company
Rico Inc. has sold wholesale gift and novelty products into retail markets across the country since 1944. The business has been a consistently top-ranked licensee of the NFL, MLB, NBA, NHL, and more than 200 colleges and universities. Rico has grown over their 75 years of service. They have acquired multiple companies, including Tag Express in 2001, and Big League Promotions and Tags By Design in 2009. In addition, they launched their first brand, SPARO, in 2013.
The challenge
"I wanted to make sure by solving one need I wasn’t creating a problem somewhere else.”
Rico was using NetSuite ERP for AR management, however, it was limited in functionality and user-friendliness. The CFO mentioned how NetSuite was practical for mid-level companies, but when one wanted to be more agile, processes would become cumbersome. Cash flow calculations were time-consuming as they were done manually in Excel and gradually shifted from being done weekly to being abandoned completely.
The solution
Rico needed faster invoice payments without sacrificing existing systems. They wanted a solution that included not only automated collections processes, but also provided cash flow projections with predictive analytics. Alevate AR was the obvious choice, providing an automation solution that expedites the entire AR cycle, makes collections simpler, and provides the visibility and analytics needed to create accurate forecasts and predictions.
The CFO emphasized that “the addition of a fintech solution should not add work and rather make processes easier.” The team was pleasantly surprised with a simple and quick integration process for a service that would take time off their plate from doing manual work and hunting down clients. They were especially welcoming to the change due to Alevate AR’s user friendliness and functionality, with the finance team confirming many customers began using the payment feature soon after implementation.
The results
Alevate AR streamlined Rico’s entire AR process, making it easier for their team to follow. By using automated email communication, customers are enabled to pay invoices quickly and efficiently. Rico had seen a reduction of 12 days in DSO after just 3 months.
“Automating day-to-day operations leaves more time for the important analytics.” - Navin Eric, CFO
Moving forward, Rico hopes to see Alevate AR provide alerts about clients who will likely make late payments to help proactively reach out to those customers and ensure prompt payment of outstanding invoices.
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