Heyman Corporation

					                                     H ey m an C o r po rat i o n gai n s
                                     c o n t ro l o ve r de du ct i o n s w it h 9ci
                                         Heyman Corporation, a mid-sized
                                      apparel manufacturer in Vernon Hills,
                                      produces apparel under licensed names
                                      like OshKosh B’Gosh, Disney and
                                      Warner Brothers. Like so many other
                                      companies that sell to mass merchants
                                      and department stores, Heyman had
CUSTOMER                              significant deduction issues. The investi-
                                      gation and tracking of incoming deduc-
Heyman Corporation                    tions was draining resources, and
www.heymancorp.com                    continued to rise at an alarming rate. In
CORPORATE P R O FILE                  1999, deductions more than doubled
                                      from the year prior. It became clear
Headquarters                          that a plan was needed to combat this        the volume of customer deductions, and
Vernon Hills, Illinois                never-ending assault to the bottom line.     because of these deductions, Heyman
Type of Business                      A program written and developed by           cannot efficiently process electronic
                                      Corporate Credit Manager, Michelle De        lockbox or EDI payments. Heyman turned
Apparel Manufacturer
                                      Napoli, CBA, appropriately titled            to 9ci’s automated cash application
Number of Locations                   “Getting Connected was put into place.       module, a software solution specifically
One                                   “Getting Connected” has a simple             designed to handle the unique cash
                                      philosophy of connecting with your           application needs of companies like
                                      customer, internal and external, and         Heyman Corporation. After implementing
SYSTEM PRO FILE                       understanding and communicating the          9ci’s cash application module, Heyman
9ci Modules                           tasks needed to comply with customer         Corporation reduced its cash application
        Cash Application              requirements,” says Michelle De Napoli.      time to two hours a day. Eighty percent
        Dispute & Collections         Heyman Corporation collaborated with         of the electronically received remittances
                                      9ci, Inc. to achieve their software goals.   require no human intervention and
        Business Insight
                                      Technology                                   automatically feed the accounts receiv-
                                      Cash Application                             able software and deduction control
                                      Heyman Corporation was spending              system.
                                      eight to sixteen hour applying one
                                      day’s cash. Like most accounting             Deductions
                                      systems, Heyman’s accounts receivable        Heyman needed a system to track,
                                      software cannot effectively handle           control, and analyze its customer
                                                                                   deductions. Similar to other companies,

                                CHALLENGE                         SOLUTION                        RESULTS
                                Investigating and tracking      9ci’s Dispute/Collection &     Reduced cash application
                                of incoming deductions was      Deduction System (DCS) &       time by over 85% and
                                draining resources and          Business Insight interfaced    increased its invalid
                                continued to rise.              with existing Legacy           deduction collections by
                                                                system.                        over 300% saving over
                                                                                               $2.5 Million.
                                           each deduction Heyman receives may            Business Intelligence Suite
                                           have multiple reason codes and                Once Heyman Corporation had a system
                                           department responsibilities. With the         in place to reduce its cash application
                                           proper procedures and framework in            time and track and resolve its
                                           place, it was time for the most important     deductions, they needed the analytical
“9ci has saved us over $2.5 million        challenge - searching for a deduction         ability to find the root cause of their
by assisting in our accounts               management system that would provide          deductions and view the information they
                                           the functionality necessary to put all of     gathered in an easy to understand
receivable re-engineering efforts.         Heyman’s connections together. The            format. With the assistance of 9ci, Inc.,
They have been crucial to the              shopping proved to be very frustrating.       Heyman Corporation now utilizes a
productivity of our financial software     Initially, each vendor demonstration          Business Intelligence system for
systems.”                                  indicated impressive systems, but further     immediate access and analysis of its
                                           investigation proved that these systems       corporate data, including deduction
                               John Kuhn   did not provide the needed functionality.     information. Heyman Corporation now
                                    CFO    After briefly using another deduction         has the ability to make better-informed,
                      Heyman Corporation   system, Heyman realized they needed           critical business decisions in real-time. It
                                           more flexibility, better support, and         has the necessary information readily
                                           robust analysis features. In order to         available to provide a greater
                                           achieve their multiple objectives, Heyman     advantage in negotiating and resolving
                                           Corporation looked to 9ci’s solution, a       customer issues. 9ci’s Business Intelligence
                                           fully integrated suite of applications that   system provides Heyman with accurate
                                           encompassed the full deduction                figures on customer profitability,
                                           resolution process including cash             customer deductions as a percentage of
                                           application, deduction management,            sales, shortages and claims as a percent
                                           promotion planning/trade fund                 of sales by customer, and any other
                                           management and a business intelligence        “what-if” scenarios Heyman can devise.
                                           analysis tool.
                                              To be successful in tracking deductions,   The Results
                                           a coding system is developed to               In October 2000, Heyman celebrated its
                                           segregate deductions by department.           first anniversary with its new deduction
                                           Each department has approximately ten         process. With the established systems
                                           codes utilizing all possible deduction        and procedures in place, the results
                                           reasons from the customer. As deductions      started show immediately. The staff
                                           are received, they are promptly coded         required to handle the research and
                                           and automatically entered and passed          collection of deductions has been
                                           on to the respective department for           reduced significantly. Deductions are
                                           research and approval. This process has       now processed and categorized within
                                           worked very well to illustrate to the         24 hours of receipt, thus fixing any new
                                           individual departments how one wrong          deduction issues before they become
                                           turn can cause a large penalty.               uncontrollable.
                                              9ci’s Deduction Control Module                By collaborating with 9ci, Heyman
                                           provides a means to track all incoming        Corporation has reduced its cash
                                           deductions and assign them to a               application time by 85 percent. In the
                                           particular processor, steps to resolve        first year of new internal procedures
                                           deductions varying on reason code, and        and flexible software systems, Heyman
                                           tracks the entire resolution activity from    Corporation has increased its invalid
                                           start to finish. Like other companies,        deductions by over 300 percent.
   9ci’s Credit-to-Cash Solution           Heyman Corporation finds that after           Heyman Corporation now boasts a 41
                                           some investigation on a particular            percent reduction in customer compliance
       Auto Cash Application               deduction, there may be numerous              deductions across all departments. As
                                           reason codes associated with it. They         Heyman’s results demonstrate, close
Collections/Deductions Management          wanted a deduction system that enabled        scrutiny of your deduction resolution
 Deductions & Dispute Prevention           them to have multiple reason codes            processes provides financial rewards.
   Trade Promotion Management              associated with a particular deduction,
                                           as well as multiple line items per
          Business Insight
                                           deduction. 9ci, Inc.’s Deduction Control
                                           Module provides the necessary flexibility
                                           that Heyman Corporation needs.                                         800-397-6952

Description: Heyman Corporation document sample