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Case Study
Building Products Manufacturer & Supplier
Closing the Door on O2C Issues
Rapid growth outpaced this commercial steel door manufacturer’s in-house AR team, requiring better processes and augmented support.
For commercial manufacturers, where orders can total hundreds of thousands of dollars per project, efficient accounts receivable (AR) processes are critical to sustaining cash flow, replenishing materials for production, and driving future growth. When this building and storage products company recognized that limited AR capacity and disjointed systems were creating inefficiencies, they partnered with Cadex Solutions.
In just one year, Cadex helped transform their AR operations, expanding from a small U.S.-based team of six to a globally located, specialized team of 39 offshore order-to-cash experts. By improving upstream processes to prevent downstream impacts, this transformation optimized cash flow, prevented revenue leakage, and improved customer satisfaction.
Lifting the Barriers to a Healthy Cashflow
ABOUT THIS CLIENT
This $1B publicly traded U.S. company specializes in roll-up and swing doors, relocatable storage units, and access technologies. With 2,500 employees, they offer facility planning, design, construction, and restoration services.
ENGAGEMENT SUMMARY
Contract Start Date: 2023
Industry: Manufacturing
Delivery Location(s): Colombia, Romania, & USA
Resources Assigned: 39 FTEs
Languages: English & Spanish
SERVICES APPLIED
- Billing & Invoicing
- Cash Application
- Credit Applications
- Order Release
- Dispute Management
- First-Party Collections
- Third-Party Collections
The Challenges
AR issues jeopardized the hard-won trust earned from customers, employees, and investors.
AR issues strained customer relationships and disrupted the order-to-cash process. As the company expanded through new orders and acquisitions, internal resources were stretched thin, leading to overlooked processes, employee burnout, and growing risks. Late invoices and payment delays further eroded customer trust. Cadex pinpointed key challenges driving these inefficiencies:
Staffing Shortages and Broken Processes
Underutilized AR Software
Billing Inconsistencies
Tardy Cash Application
No Standardized Collections Process
Unlock Cashflow with Cadex
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The Solution
To scale and improve its order-to-cash process, the company needed to enhance its back-office operations while managing growth. Cadex provided targeted solutions to strengthen capacity and efficiency:
Staffing Support
Cadex grew the team from 13 to 39 FTEs across cash application, credit application, order release, and collections, ensuring the right capacity to manage increasing volumes.
Addressed Core Billing Issues
By organizing billing processes and enforcing timely data entry, Cadex accelerated invoice turnaround and reduced delays.
Doubled Down on Collections & Charge-offs
Cadex expanded the collections team from 3 to 10, improving recovery rates and formalizing 3P charge-offs to flag uncollectible invoices, effectively reducing the backlog of past-due receivables.
Software Integration & Optimization
Cadex enhanced the client's Get Paid software, aligning it with Sage (for accounting and CRM) and eliminating duplicative efforts, speeding up collections for $150M in overdue invoices.
Streamlined Cash Application Processes
With accurate billing, the addition of cash application specialists, and enhanced software integration, Cadex simplified the matching of payments to open invoices, boosting accuracy and streamlining customer communication.
The Results
With more predictable 02C, the focus moved from firefighting to strategy
The initial phase of Cadex's operations focused on survival and immediate problem-solving. A year later, however, the focus shifted to achieving quarterly goals for billing, cash application, and collections.
The Cadex transformation has not only yielded stellar AR results but has allowed for quick pivots, scalability, and long-term cost savings, even in light of new acquisitions and changing business needs.
in Year 1
Inception
Inception
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