Published November 21, 2019
The Nitty Gritty Behind DSO and How Electronic Delivery
Accelerates Cash Flow
One of the most effective ways to reduce DSO is to remove the mailing process entirely. Physical deliveries take time. Stuffing envelopes, whether by hand or at volume by machine, also takes time.
USPS standard mail and eligible bulk mail if your company uses third-party fulfillment to mail thousands of invoices monthly, are processed on a “time available” basis, or after the post-office has processed all first-class mail. For standard and bulk mail dropped off at the post office for delivery, the USPS will first process all first-class mail received that day. Your mail will be held for processing until the following day. That next day, the USPS will again process all first-class mail received that day, before attempting to process your standard or bulk mail from the day before, and so on until your mail can be processed.
At its most efficient, mail delivery is still delayed by weekends, holidays and the weather. Electronic delivery is the easiest way to circumvent the shortfalls of physical mail delivery.
Dynamic, smart e-Invoice solutions from the right technology partner ensure your invoices are delivered instantaneously by email or even by text. While electronic invoice delivery doesn’t ensure electronic payment, it does ensure cutting your DSO by as much as half and providing an electronic record of receipt.
Unified Commerce, NAW’s Trusted Partner for cloud-based AR Technology and Payment Acceptance Solutions in the wholesale distribution industry, was recently recognized as a “TOP 10 AR Solutions Provider.” Unified simplifies AR to help Enterprise and Mid-Market businesses accelerate cash flow, reduce costs and improve efficiency with digital solutions which can be incorporated easily into your existing workflows and processes with minimal disruption.
Ready to find out what a Smart e-Invoicing solution can do for your business? Click the “Contact Us” button at the top of the page or give us a call at (888) 440-0117 to speak with a Subject Matter Expert for a free AR consultation and savings analysis. For more information on electronic invoices, digital payments, and surcharging solutions check out our News & Resources page and follow us on LinkedIn and Facebook for updates.