Case Study: L’Oréal reduces credit risk and automates cash operations with HighRadius

L’Oréal eliminates $57M in credit risk with HighRadius

L'Oréal, a global beauty industry leader, faced significant Order-to-Cash challenges. Their fragmented operations across over 40 brands led to 24.4% of receivables being overdue, exposing the company to $57 million in credit risk and stalling shipments. An overwhelmed team manually processed deductions and cash applications, causing delays and locking up $3.4 million in working capital.

HighRadius implemented an automated solution for deductions management and cash application. This resulted in a reduction of A/R overdue from 24.4% to 11.7%, eliminating the $57 million credit risk and unlocking the $3.4 million in cash. HighRadius achieved 96% straight-through cash application across 941,000 invoices annually and automated the coding of 82% of deductions into ERP reason codes.

L’Oreal