Accounts Receivable Management for Distributors
The competitive edge of wholesale and distribution companies is their ability to make high volume sales that avoid low margins. Yet with more sales comes more invoices, placing a strain on the company’s accounts receivable (A/R) management processes. Accounts receivables for retail is an area long overdue for optimization.
In the past, wholesale companies have had a hard time tracking past due receivables and encouraging on-time payments. This is a problem that must be resolved if wholesale and distribution companies want to stay competitive and efficient.
The Importance of A/R Management in Wholesale & Distribution
Wholesale and distribution companies face substantial pressure to stay competitive. The business market is becoming increasingly globalized, with companies across the world having access to vendors and suppliers regardless of region.
Naturally, the pressure is on to optimize processes that keep margins high. These companies often prioritize goals such as supply chain optimization, increasing on-time delivery, or other processes that let them provide a better customer experience. Cash flow isn’t always a priority. But it should be, as stronger accounts receivables for wholesalers can be a simple way to keep up in the highly competitive distribution market.
One of the easiest ways to improve A/R processes is taking a look at existing workflows and identifying common sources of inefficiencies. For businesses in retail, wholesale, and distribution, we’re willing to bet that many still rely on spreadsheets or paper charts to manage their finances.
However, spreadsheets can be time-consuming to manage and don’t offer much in the way of financial insight. Instead, companies should consider a new approach to their retail accounts receivable that provides in-depth insight into financial performance – automated A/R collections platform.
How to Improve A/R in Wholesale and Distribution
Automated accounts receivable collection software, like the platform provided by Gaviti, has the potential to optimize your wholesale account receivable processes from end-to-end.
This begins with the easy way that A/R automation platforms integrate with your other systems – including your supply chain management platforms, inventory tracking systems, and more. Your financial data gets pulled directly from your key enterprise resource planning (ERP) assets and uploaded to your A/R system for maximum convenience.
With a system like this, wholesale account receivable processes will be enhanced in several important ways:
- Gain a single, unified system for all aspects of financial management, inventory planning, and forecasting.
- Get real-time visibility into all customer-facing financial processes, including invoices, outstanding debts, lines of credit, and more.
- Contact clients with the information you need to clear invoices promptly, get paid faster, and maintain better relationships with your customers.
- Leverage financial insights to support long-term retail planning with the help of built-in analytics and performance reviews that go far beyond what basic spreadsheets offer.
Above all, A/R collections automation helps large-scale companies reduce the manual effort of collections and gives them a new way to manage finances that’s easy, simple to use, and scalable with the enterprise.
Improve Your Business With Wholesale Distribution Accounts Receivable Software
If you’re looking to expand your wholesale and distribution collections capabilities, Gaviti can help! With our online accounts receivable collections platform behind you, distributors may be surprised at how easy it is to maintain stronger cash flow.
Gaviti’s built-in features make it easy to stay on top of every emerging A/R issue affecting your business. With more visibility into the process, you’ll identify your inefficiencies, learn the optimal time to make contact with customers, and gain the in-depth analytics you need to support long-term financial health.