The Challenge: Ensure invoices were delivered to the right person and paid on time; save time and effort for sales agents to focus on sales and future clients.
Prior to MasterFood implementing Gaviti, there were two main struggles the meat and fish distribution company faced. Those were:
- Maintaining organization and making sure that no invoices fall between the cracks.
- Manual reports handled by sales agents in order to track debt status.
This process was so difficult because MasterFood has 1,200 clients, 8 sales agents, and anywhere from 250 to 500 clients per day. Their ability to send invoices, continue distributing, uphold customer relationships, and track down late payments was overwhelming.
At least once a week, every week, reports were created for each salesperson. So, approximately 32 reports a month, with each report taking about 30 minutes to go through – this meant almost 15 hours a week was being spent pulling reports and looking for lost money.
The Solution: Find a tool to keep all contacts in one place and a reliable method for tracking invoices.
When an accountant approached MasterFood’s Co-CEO Arik Abramovitz about Gaviti, there was no hesitation. With an impressive simplicity to the program and such an easy implementation process, all they had to do was provide their data and the tool worked immediately.
ROI? Life is much much easier!
When it comes to MasterFood’s invoicing process, it’s more complex than a quick email to the client. The person placing the order from MasterFood is not the same person accepting the delivery and receiving the invoice later on. That’s why MasterFood uses Gaviti to inform all sides involved that the shipment was made and the invoice was delivered. Gaviti gives them one place to locate all contact details for their various stakeholders and ensure the right people are notified when an order is fulfilled and ready for payment.
“I believe that in order for a human to replace Gaviti we would need to hire someone on a part-time basis, whose salary would be about double the cost of the service, hence why we can say that we saved the cost pretty much from day one!”–Arik Abramovitz, Co-CEO, MasterFood
Results with Gaviti: Cut out 15 hours of invoice reporting each month, DSO decreased by 8% (a significant percentage for their industry)!
In this business, it is very rare that a debt will be 60 days overdue… and yet, Gaviti helped MasterFood to decrease their DSO by 8%! D&B’s Q2 2020 report found that the wholesale packaged frozen goods industry (MaterFoods sector), had an average of 22% of receivables in the 90+ bucket. For MasterFood, their 90+ bucket represented less than 1.5% of receivables for the same period.
Now that sales agents don’t have to spend their time tracking unpaid invoices, they have more time to focus on making sales and prospecting for new clients. The cost of Gaviti paid off and even increased sales due to freed up time – nearly 15 hours a month! And, the synced dashboard means nobody needs to bother the sales agents to provide updates on the status of invoices – it’s all at the tip of management’s fingers.
“Now the information is being pushed to them rather than them having to pull it. This means they get the relevant information on a more frequent basis and cannot ignore it.”–Arik Abramovitz, Co-CEO, MasterFood