Discover how FreePay increased Hafele’s productivity by 74%

The Objective

To automate the manual collection & reconciliation process for instant release of distributor credit limits & to free the Hafele commercial team to focus more on sales

The Background

Häfele is an international company that provides hardware, fitting systems and electronic access control systems around the world

Their products are available across the country, serving 700+ dealers/distributor networks spread across 29 states PAN India

The Numbers

0 Million

Euros unlocked

0 Day

Reduction in Daily Sales Outstanding (DSO)

0 %+

Straight Through Reconciliation (STR) - No Manual Intervention

The Numbers

0 %

Productivity Increase

0 Day

Reduction in DSO

The Challenge

Hafele relied heavily on manual processes for their collection and reconciliation processes. These manual processes significantly brought down productivity and working capital efficiency

01 Invoice Processing and Sales Team productivity

Invoices were printed and sent through the transporter. It was the responsibility of the sales team to follow up with the dealer regarding delays and pending invoice payments. This in turn results in a 25% loss of productivy time of the sales team

02 Credit Notes and Advance Payment Collection

Credit notes were sent via mail to dealers and required continuous follow-up from the dealer with the sales team to check for their validity. Dealers paying advance amounts posed a challenge for the AR team as they had to park these advances separately and later mark them against invoices

03 Manual Reconciliation

The Finance team faced challenges during reconciliation as multiple invoices were clubbed & paid by dealers; hence, constant follow-up was needed to obtain payment breakups. Although banks provide virtual account numbers, it was difficult to find out the payment context

04 Payment Delays

Due to the difficulty involved in keeping track of payment due dates by the dealers, many of the payments were missed which lead to extended DSO’s

Our Solution

EIPP Solution for Automatic Reconciliation & Collection process

01 Real-Time View of Invoice

Integrating the EIPP solution with the company’s ERP ensures that the outstanding invoices, credit/debit notes are automatically picked up once generated resulting in the distributor getting an actionable invoice on the same date of invoice generation

02 Early Payment Discount Function

The early payment discount structure is mapped to ensure that the correct discount is applied once the customer initiates invoice payment

03 Advance Payment Function

Collection of Ad-Hoc advances via FreePay helps in easy reconciliation

04 Active Dunning and In-App Notification

The active dunning & in-app notification in FreePay notify dealers of late payments, penalties and also benefits of early payment with an option to schedule payment as per dealer cash flows

05 Auto-reconciliation

The in-app payments handling and the EIPP -ERP integration ensures that the transactions are reconciled back without any manual intervention

The Results

As a result of automating the collection and reconciliation process, PayEX has helped Hafele to channelize their sales team to purely focus on sales and in maintaining an excellent dealer relationship. Hafele was able to improve their DSO’s by 2 days and also save cost by 13%. The real-time reconciliation has helped Hafele to release distributor credit limits instantly even on month’s end. PayEX has helped Hafele with a platform that enables them to increase their productivity by 74%

“The fintech-powered solution has fully digitized our workflows in India, alleviating our treasury team from traditional manual practices to better focus on core strategy planning, to further grow the business.”

Jessica Chan , Director of Treasury APAC ,

Stanley Black & Decker

Discover how FreePay increased Hafele’s productivity by 74%

The Objective

To automate the manual collection & reconciliation process for instant release of distributor credit limits & to free the Hafele commercial team to focus more on sales

The Background

Häfele is an international company that provides hardware, fitting systems and electronic access control systems around the world

Their products are available across the country, serving 700+ dealers/distributor networks spread across 29 states PAN India

The Numbers

The Numbers

The Challenge

Hafele relied heavily on manual processes for their collection and reconciliation processes. These manual processes significantly brought down productivity and working capital efficiency

01

Invoice Processing and Sales Team productivity​

Invoices were printed and sent through the transporter. It was the responsibility of the sales team to follow up with the dealer regarding delays and pending invoice payments. This in turn results in a 25% loss of productivy time of the sales team​

02

Credit Notes and Advance Payment Collection​

Credit notes were sent via mail to dealers and required continuous follow-up from the dealer with the sales team to check for their validity. Dealers paying advance amounts posed a challenge for the AR team as they had to park these advances separately and later mark them against invoices​

03

Manual Reconciliation​

The Finance team faced challenges during reconciliation as multiple invoices were clubbed & paid by dealers; hence, constant follow-up was needed to obtain payment breakups. Although banks provide virtual account numbers, it was difficult to find out the payment context​

04

Payment Delays​

Due to the difficulty involved in keeping track of payment due dates by the dealers, many of the payments were missed which lead to extended DSO’s​

Our Solution

EIPP Solution for Automatic Reconciliation & Collection process

01

Real-Time View of Invoice​

Integrating the EIPP solution with the company’s ERP ensures that the outstanding invoices, credit/debit notes are automatically picked up once generated resulting in the distributor getting an actionable invoice on the same date of invoice generation​

02

Early Payment Discount Function​

The early payment discount structure is mapped to ensure that the correct discount is applied once the customer initiates invoice payment​

03

Advance Payment Function​

Collection of Ad-Hoc advances via FreePay helps in easy reconciliation​

04

Active Dunning and In-App Notification​

The active dunning & in-app notification in FreePay notify dealers of late payments, penalties and also benefits of early payment with an option to schedule payment as per dealer cash flows​

05

Auto-reconciliation​

The in-app payments handling and the EIPP -ERP integration ensures that the transactions are reconciled back without any manual intervention​

The Results

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Invoice Processing and Sales Team productivity

Invoices were printed and sent through the transporter. It was the responsibility of the sales team to follow up with the dealer regarding delays and pending invoice payments. This in turn results in a 25% loss of productivy time of the sales team

Credit Notes and Advance Payment Collection

Credit notes were sent via mail to dealers and required continuous follow-up from the dealer with the sales team to check for their validity. Dealers paying advance amounts posed a challenge for the AR team as they had to park these advances separately and later mark them against invoices

Manual Reconciliation

The Finance team faced challenges during reconciliation as multiple invoices were clubbed & paid by dealers; hence, constant follow-up was needed to obtain payment breakups. Although banks provide virtual account numbers, it was difficult to find out the payment context

Payment Delays

Due to the difficulty involved in keeping track of payment due dates by the dealers, many of the payments were missed which lead to extended DSO’s

Real-Time View of Invoice

Integrating the EIPP solution with the company’s ERP ensures that the outstanding invoices, credit/debit notes are automatically picked up once generated resulting in the distributor getting an actionable invoice on the same date of invoice generation

Early Payment Discount Function

The early payment discount structure is mapped to ensure that the correct discount is applied once the customer initiates invoice payment

Advance Payment Function

Collection of Ad-Hoc advances via FreePay helps in easy reconciliation

Active Dunning and In-App Notification

The active dunning & in-app notification in FreePay notify dealers of late payments, penalties and also benefits of early payment with an option to schedule payment as per dealer cash flows

Auto-reconciliation

The in-app payments handling and the EIPP -ERP integration ensures that the transactions are reconciled back without any manual intervention