![]() ![]() ![]() Rexel believes in a ‘train the trainer’ philosophy, meaning once internal staff are trained on the platform, they can advocate its value to customers.”Īnd this has resulted in great adoption numbers. ![]() After this, those staff members are ready to talk about the portal with their customers. He says that to provide support, Rexel first “holds training sessions with its internal team of 50 collections staff to build confidence using the Versapay portal. Rashid suggests businesses “help their customers along that journey” when asking them to embrace receiving and paying invoices online. That same wholesaler, Rexel, deals with a range of customers, “from the largest corporations in Canada to local contractors.” And each has different needs regarding their preferred rules of engagement. Instead, capture the pennies (and we’re sure there are millions and millions of them) you’re owed. So, for wholesalers looking to preserve more cash flow, we highly recommend diverting attention toward capturing revenue that should have closed months prior, as this likely accounts for a sizable chunk of change.ĭefinitely spend your pennies wisely, but don’t stretch your human resources or get creative to survive with less cash on hand. In fact, it’s touch and go for most businesses, who are finding their cash flows increasingly destabilizing due to unpaid invoices that should have been paid on time.Ī recent study of ours surfaced that mid- to upper-midsized businesses have approximately $4 million in outstanding invoices each month due to lapses in communication. ![]() Right now, delayed payments are compounding at an alarming rate. It’s a critical and costly issue for businesses of all sizes and industries, but especially so for distributors. Spend your pennies wisely (better yet, don’t let the pennies you’re owed, get away)Ĭash leakage is the concept of cash that you’re owed, but are on the cusp of writing off as bad debt. Understand your expenses, don’t hoard cash, and forecast well → Transform your accounts receivable through digitization → Incentivize customers to embrace paying invoices online → Transition away from traditional paper-based invoicing → Don’t let the money you’re owed get away → Oh, and since accounts receivable is sort-of our bread and butter, we’ve chosen to focus most of our suggestions in that area, and include some insights from our own wholesale clients on how AR automation software drives their business forward! Jump ahead to a tip of interest: Sometimes challenging situations force us to transform, and make operational changes that significantly benefit us long term. Knowing how important it is to be financially stable (and flexible) and understanding the importance of avoiding financial distress, we’ve put together a list of 8 ways wholesale distributors can face a slowing economy head-on, and come out the other side stronger and more prepared (and more profitable).Īfter all, just because something’s out of your control, it doesn’t mean it’s intrinsically bad. Throw in those elements distributors can control (yet aren’t necessarily easy to, like managing inventory) and it becomes quickly evident that any path that accelerates cash flow and drives efficiencies should be considered. Supply chain disruptions (49% of executives)Įither directly or otherwise, all of these outside factors impact wholesale distributors’ ability to preserve cash flow, and lengthen their liquidity runway. Here’s just a taste of the global challenges 1000 C-level executives say are currently causing headaches for their AR departments: And wholesale distributors are caught in the storm. Unfortunately, businesses today face some of the most challenging headwinds in decades. Because of how they’re uniquely positioned, when it comes to managing cash flow, some things are simply out of their-and their accounts receivable teams’-control. Wholesale distributors bridge the gap between manufacturers (who make products) and end users or customers (who need those products). ![]()
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