Jenny Craig, Inc.

Jenny Craig, Inc. Turns Account Reconciliation Processes Around with Trintech’s ReconNET

Profile

Jenny Craig, Inc., based in Carlsbad, CA, is one of the world’s largest weight management companies, with approximately 640 centers in the United States, Canada, New Zealand and Puerto Rico. Jenny Craig has provided services to more than 10 million clients worldwide since 1983, and employs approximately 1,900 FTE people company-wide. The Jenny Craig YourStyle Program helps clients manage their weight by creating a healthy relationship with food, building an active lifestyle and developing a balanced approach to living. Jenny Craig is a privately-held company.

Challenges

Jenny Craig had purchased the ReconNET system, however reconcilers had changed many times after the purchase. New staff did not have a full understanding of ReconNET’s capabilities. While they were using the product to automatically reconcile cash and checks to bank deposits, they continued to manually reconcile credit cards. Manual processes meant delays in month-end close and in identifying and correcting exceptions. Additionally, because communication to the field was not automated, accounting staff spent a great deal of time faxing and calling center directors to report overs and shorts, missing credit card items, and mis-keyed tender types.

Objectives

A new Controller for Jenny Craig had used ReconNET at another company, and was surprised that the system was not being used to its full potential. He knew what the product could do for Jenny Craig’s 440 stores in the U.S. and Canada, more than 400 depository accounts and 10 disbursement/concentration accounts. He set the following objectives:

• Migrate to the current version of ReconNET and install credit card reconciliation
• Use ReconNET’s research features to automate communication with the field
• Reduce cash shortages and banking fees
• Improve staff productivity
• Improve internal treasury management

Proven Results

After fully implementing ReconNET, Jenny Craig has:

• Reduced reconciliation staff by 1.25 FTE
• Reduced payroll staff by 1.25 FTE
• Reduced cash shortages and saved approximately $40,000 per year in banking fees
• Eliminated 90% of fax and phone communication to the field
• Shortened reconciliation time, from three weeks (manually) to five days
• Improved exception reporting by detecting exceptions in real time, allowing for quicker resolution while the transactions are “fresh”
• Heightened the sense of internal control (Centers know that Corporate is “watching them.”)

Future Plans

Jenny Craig is exploring the expansion of the ReconNET solution across its new Zealand and Australian enterprises.

“This has been a big success story for Jenny Craig. All modules have been implemented, the staff has been trained, and we’re reconciling funds on a daily basis. The system has changed how we conduct business, and it has paid for itself in a year.” - John Kuett, Controller

For more information on how you too can increase compliance and achieve tighter financial controls with ReconNET, contact Trintech today.

Published Friday, January 19th, 2007 at 3:01 pm and filed under ReconNET, Retail Specialty, Success Story Library.