Shaklee Corporation is an American manufacturer and multi-level marketing distributor of natural nutrition supplements, weight-management products, beauty products, and household products. The company is based in California, USA. However, they have global operations in Canada, China, Indonesia, Japan, Malaysia, and Taiwan. Shaklee products make a difference in millions of people’s lives, from world class Shaklee Pure Performance Team athletes to even NASA astronauts. The Shaklee mission is to ‘provide a better and healthier life’ for its customers all over the world.
Cashbook work directly with the Shaklee Malaysia division. Shaklee Malaysia have seven different branches spread throughout the country. They conduct the financial operations for the whole of Malaysia from their headquarters in Selangor. Shaklee Malaysia was looking for a single cash management automation solution, and they selected Cashbook to provide this solution to them.
Prior to the Cashbook implementation, Shaklee Malaysia was having a few technical issues. Shaklee was in the middle of migrating from their old accounting system to the new ERP system, Infor LX. All the relevant sales information for customers was held in a second system, called Yatai. The key to understanding the financial process of Shaklee Malaysia was to understand how customer information and distributor information were configured on both systems. Distributors are both customers and vendors to Shaklee. They purchase goods from Shaklee, which they then sell on to their own network, making them customers who generate orders and invoices in Yatai. A customer in there is also a vendor in Infor LX. The Yatai customer system interfaces with Infor LX daily while vendor commissions are paid on a monthly basis.
At the end of each month, distributors are owed commission as sales representatives of Shaklee. There were approximately 150,000 distributors. It was recognized by HQ that the Shaklee Malaysia finance team required a fully integrated and automated system. Prior to the Cashbook implementation, the company was struggling with the following processes:
Cashbook’s core business revolves around the design, development, deployment, and support of Cash Application, Payments, and Reconciliation software for large corporations. Businesses are seeking to automate their complex and manual financial processes. This focus has been a constant over the past 25 years for Cashbook.
The Cashbook proposition to Shaklee Malaysia was our four core modules. Cash Application, Bank Reconciliation, Accounts Payable, and Cash Manager – which displays all the information from the three core areas. Not forgetting our biggest challenge – between 10,000 and 20,000 monthly distributor payments, we proposed to use Cashbook Direct Debits to create a payment to a customer. The benefit of this option is you avoid duplicating distributors as both customers and vendors, with the obvious data maintenance challenges. The implementation of Cashbook resulted in complete automation of the accounts department process – AR & AP. See the full detailed results of the transformation below: