Case Study

Resorting to the best: Digital automation for accounts receivable

How MGM revamped AR to boost productivity by nearly two-thirds

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Who we worked with

MGM Resorts International, a global hospitality and entertainment company that operates destination resorts.

What the company needed

More working capital, better agent productivity, fewer invoice disputes, faster collections, and a simplified, standardized accounts receivable (AR) process across all its properties.

How we helped

We implemented Cora ARFlow, a digital, modular, mobile-enabled platform that automates AR processes from the time an order is placed until the payment is received and the cash is applied.

What the company got

A simple, agile, automated AR capability that has increased agent productivity 60%, reduced collection cycle by 32%, and cut invoice creation cycle time by 75%. This translates to lower cost-to-serve and faster in-hand working capital for the client.

Challenge

Make MGM’s accounts receivable processes as cutting-edge as its resorts

While MGM Resorts International prides itself on creating guest experiences that engage, entertain, and inspire, its AR process was anything but inspiring.

In addition to being paper-intensive, complex, and highly manually, it was decentralized and non-standardized across a large portfolio of destination resorts. These inefficiencies resulted in inaccurate invoices, billing and payment delays that negatively impacted cash flow, and a shocking 85% dispute rate, which trapped millions of dollars of cash in the AR process.

To make matters worse, the finance team had to use excess full-time employees (FTEs) to handle AR processing and upstream functions because of the manual nature of the work. And they lacked metrics that would help them figure out how to improve the process.

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MGM Resorts needed digital automation to centralize, simplify, and more quickly realize cash from its AR process.

Solution

Automate the whole AR process from the time an order is placed until the payment is received

Genpact helped MGM Resorts simplify and standardize its AR process, streamline its workflow, and institute electronic invoicing with Cora ARFlow.

Cora ARFlow is a digital, modular, mobile-enabled platform that automates AR processes from the time an order is placed until the payment is received and the cash is applied. Using Cora ARFlow’s digital-driven automation capabilities, underpinned by Genpact Cora – our AI-based platform, and our Lean DigitalSM approach to process transformation – MGM has been able to:

  • Electronically present, release, deliver, and receive payment from its customers in both its wholesale and convention business lines, which has dramatically reduced manual efforts, errors, and the length of the billing-to-cash cycle
  • Consolidate and standardize its bill-pay capability
  • Centralize and standardize its dispute capture and resolution processes using improved workflow to create, authorize, and approve or reject disputes
  • Standardize its business properties across its portfolio of properties

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Impact

A muscular, new AR function that plugged gaps and improved efficiencies

Cora ARFlow has turned MGM Resorts’ AR function into a lean, nimble, value-producing top-performer. Since implementation, MGM Resorts has realized:

  • 60% increase in productivity
  • 32% drop in collection cycle time
  • 75% lower invoice creation cycle time
  • Significant improvement in working capital