Heidelberg Distributing builds more connected financial processes

OVERVIEW

Heidelberg Distributing Company is a premier distributor of beer, wine, spirits and non-alcoholic beverages. Founded in 1938, the company has grown from a single-truck operation to a major regional player, working with more than 800 suppliers and serving over 24,000 retail and industry establishments across Ohio and Kentucky. Operating at this scale made manual processes increasingly difficult to sustain, leading Heidelberg to seek an automated solution to streamline its financial workflows.

THE CHALLENGE

Heidelberg operates across nine locations, with each division functioning largely as a standalone business. This resulted in fragmented financial processes, most notably in AP, where daily workflows and data handling differed across locations. Without standardized procedures, turnaround times were inconsistent and preparing accurate financial reports and tax documentation required extensive manual consolidation. Month-end close was also often delayed as teams required constant back-and-forth to gather and contextualize financial data. 
Recognizing the need for a more streamlined system, Heidelberg sought an enterprise-wide solution to align processes across the organization while preserving operational visibility at the local level.

THE SOLUTION

Standardizing Accounts Payable

Heidelberg began working with Prosource in 2011 to streamline AP using Hyland OnBase. The engagement started with the Prosource team conducting an onsite assessment to map existing workflows and identify the areas creating the most friction. 
From there, Prosource configured a solution that established stronger controls over how financial data entered and moved through the company. This introduced consistent coding structures, automated three-way PO matching and more streamlined processes. Invoice routing also transitioned from manual handoffs to structured electronic queues, improving visibility across locations. 
Encouraged by the results, Heidelberg began exploring how OnBase could support additional areas of the business. “Each time we encountered a new problem that we needed to solve, it was easy to start with OnBase,” said Heidelberg’s Director of Financial Operations, Heidi Dunlap. “We would think, well, OnBase has helped us with AP, could it also do this?”

Transforming Freight Management

Similarly, Heidelberg’s freight management relied on manual, disconnected workflows, resulting in spending and regulatory blind spots. At the time, freight expenses were calculated manually using a costper-case model that did not account for differences in product weight. This made accurate cost allocation difficult, particularly for products like beer, where cases and kegs occupy different amounts of space on a truck. Freight costs also feed into product markup calculations that are tightly regulated at the state level, which meant these inaccuracies created a compliance risk.

To address this, Heidelberg worked with Prosource to implement a custom freight management solution within OnBase called OnFreight. The system streamlines freight invoice processing and determines costs using a cost-per-pound model that reflects the actual shipment weight. This ensures freight expenses are allocated accurately and remain compliant with state markup regulations.

Bringing Structure to Billbacks

Supplier billbacks represented another high-volume, labor-intensive process for Heidelberg. Previously, billback requests were primarily submitted and managed via email, resulting in incomplete information and repeated back-and-forth to clarify details. 

Prosource resolved this by implementing a structured workflow within OnBase that governs how requests are initiated and processed. Required fields ensure complete and accurate data entry at the point of submission, reducing potential delays and first-pass errors. The solution also integrates directly with Heidelberg’s ERP, automatically linking related invoices and supporting documents within a centralized record. Anyone reviewing a billback can see who requested it, why it was submitted and the associated documentation in one place.

Increasing Financial Visibility

As processes became more standardized, Heidelberg sought greater visibility into the company’s spending. Prosource implemented a Request for Funds workflow leveraging OnBase. Under this model, employees are required to submit a formal request before committing company funds. Each request captures key details of proposed expenditure and is routed through a defined approval process, ensuring appropriate review prior to purchase.

THE DIFFERENCE

Since deploying OnBase with Prosource, Heidelberg has achieved:

Significant cost savings and higher-value work 

Heidelberg reduced the headcount of its AP and AR teams by 50%, generating major payroll savings. Current staff now also have more time to focus on strategic initiatives rather than manual, time-consuming tasks. 

Faster month end and audit cycles 

AP now closes on the final day of the month, rather than 10-15 days later, while accounting closes the books five days earlier. Annual audits are also completed three days faster. Auditors can access documents directly within OnBase instead of requesting physical files, accelerating review while reducing external staffing and billable hours. 

Real-time access to information

Operational leaders now have the ability to independently review vendor spending, monitor purchasing patterns and evaluate supplier relationships. Leadership can also see spending decisions as they occur rather than waiting for month-end reports. 

Stronger regulatory compliance 

Heidelberg has strengthened its ability to meet regulatory requirements by improving how financial data is captured and managed. Accurate freight cost calculations support compliance with state liquor laws, while centralized records make it easier for the company to demonstrate adherence during reviews and audits.

WHAT'S NEXT

What began as a focused effort to streamline AP has grown into a strategic partnership with Prosource. Heidelberg continues to improve additional core processes across the organization. 

Current initiatives include an enhanced AR collections workflow designed to reduce write-offs and improve ownership across the collections process, as well as an enterprise asset tracking solution for stronger visibility and control. A more robust liquor permit verification process is also being introduced to validate required documentation before orders are fulfilled, ensuring liquor is sold only to retailers with a valid permit.