Case Study: Ferrero SpA cuts DDO from 90+ to under 30 days and recovers $2.1M/year with Cforia Software

Ferrero SpA - Customer Case Study

Ferrero USA, the U.S. arm of Italian family-owned Ferrero SpA (maker of Tic Tacs® and Rocher®), faced a growing operational problem: large retailers and a broker-driven channel (40% of sales) generated numerous deductions that were hard to mine and resolve. Although DSO was acceptable (27 days, helped by a 2% cash discount), collections relied on manual tools—spreadsheets, calendars, faxes and ad-hoc follow-up—so agents spent most of their time chasing and coordinating deductions rather than collecting.

Ferrero implemented Cforia’s MC2/MD2 platform and the MD2 Deductions Web Portal to collaborate with account managers and brokers, integrate nightly ERP feeds (SAP connector) and give collectors an A/R Workbench for prioritization and root-cause tracking. The result: DDO fell from over 90 days to under 30 within three years, Ferrero recovered an average $2.1 million per year in invalid deductions for five years, maintained staffing despite a 30% increase in deduction volume, and significantly improved visibility and collection efficiency.

Ferrero SpA

Mike Hamalak

Credit Director, Ferrero