How a Distribution ERP Helps You Get Paid Quicker

By now, we are all familiar with the ways that an ERP can help with processing orders, eliminating errors, and even ensuring compliance. But did you know that a distribution ERP can also guarantee that you get paid faster?

You’re in business to make a profit, so why not use all the tools at your disposal to ensure that you increase profitability? If you’re using an outdated legacy system, your business may not be reaching its full potential.

Consumer methods of paying for goods and services embrace the newest technology, but, many businesses are still using antiquated methods for invoicing. If this sounds like your company, this means that you will have to cover the shortfall while chasing down payment.

Let’s examine how a distribution ERP can help you get paid faster.

Standardizing Processes

Using distribution ERP software, you can track inventory levels across multiple locations. Done manually, this is a painstaking job that could easily lead to errors. By automating inventory management, tracking is effortless. Your company can easily see excesses and shortages and respond proactively. Using standard processes and automation, you can:

• Create sales orders and allocate inventory to each one

• Email notifications to customers to update them on product availability as it changes

• Replenish stock when it gets low and track receivables

• Automate invoicing based on updated inventory

Legacy or generic ERP systems may not have the customization you need to keep up with current operations. This means that your team may not be using the most efficient means of doing things. Our industry-specific distribution ERP solution comes equipped with the best features that can help your company forecast demand and streamline supply chain management.

Reducing Errors

Once the data has been entered into the ERP, the probability of human error disappears. By automating processes, communications are streamlined, productivity is improved, and manual data entry is eliminated. Unlike spreadsheets, which can be rife with errors, ERP software identifies invalid entries and warns you of any discrepancies.

As you know, the cost of keeping inventory is formidable. You pay the carry costs, and you pay for shipping and receiving. By automating these processes, a distribution ERP helps you minimize the carry costs of your inventory.

Aptean Distribution ERP gives consumer goods importers and distributors a birds-eye view of their business. In today’s market, you need access to instant information. All your data is integrated into one platform, which means that you will know—from minute to minute—how your business is doing.

Streamlining Communications and Automating Invoicing

When you are shopping for a Distribution ERP, be sure to look for one with a built-in EDI. EDI is leveraged by both retailers and suppliers to streamline communication and exchange information. A distribution ERP with built-in EDI, allows you to automatically import orders and key information, improve collaboration and streamline transaction and payment processes.

From a savings perspective, using a distribution ERP with integrated EDI will save you on basic expenses. Gone are the days of printing, mailing, and filing invoices. Studies have shown that eliminating paper-based processes can save you 35% per transaction. Since you can conduct a transaction in minutes, your business cycle speeds up, and you have more cash at hand.

But where a robust EDI really shines is in streamlining the invoicing and accounts receivable processes. With EDI, invoices are sent electronically to your customers, removing any manual processes or keying of information. This means that invoices are generated instantly and are visible to all parties.

Standardization with defined criteria ensures accuracy, and then automated confirmation verifies that the other party has received that invoice. With a distribution ERP with built-in EDI, invoices are received and processed in a timely manner. Now your company has more cash flow coming in.

Integrating Payments

How are you getting paid right now? Check or bank transfers? Maybe you’re using a digital payments platform, but it’s not integrated into your ERP. Accordingly, you have to wait for your accounting team to process the payment and then add it into the system.

With integrated payments, you don’t have to wait for customers to make bank transfers or send checks. You don’t have to wait for your team to recognize a payment and add it. Customers pay invoices directly in your platform, with reconciliation happening simultaneously. You can also complete a pre-authorization, letting you know that a potential customer has the funds, before committing to the costs of international shipping.

You don’t waste time chasing down slow-paying customers. And when those slower customers are ready to pay, you can make it as simple as possible for them with automated payments on their terms. If there is an issue with an order, an integrated payment system like Aptean Pay lets you issue refunds or dispute chargebacks.

Your payments system will send out notices automatically, and lets you know when you’ve been paid. Auto reconciliation confirms that you have the cashflow you need. You see patterns in your cash flow and can optimize and control fluctuations.

As a consumer goods distributor, you want to increase the efficiency of daily operations, while saving money, time, and resources. You want to maximize profit and minimize waste. You want to reduce inefficient processes and reveal growth opportunities. Find out how Aptean can help–talk with one of our consultants today.