eConnectivity … Enhancing Contractor & Distributor Profitability

Recently we’ve spoken to a number of distributors about the operational aspect of their business. A recurring trend is the interest in improving cashflow. While a group of distributors have focused on better managing their inventory investments, many are looking at their billing processes as a means to reduce their DSO’s and strengthen their connections to their customers.

Some of the tools that they are using include:

• e-billing
• tightening credit limits and credit policies
• offering online bill payment
• e-invoicing
• outsourcing invoicing to reduce operational costs and get invoices to customers sooner
• direct connection invoicing with electronic payment
• “encouraging” small customers to use credit cards vs. extending credit to them
• Providing gift cards as an alternative to discount policies
• Providing billings via Quickbooks

Last year we conducted an initial benchmarking survey . Some distributors are currently using many of these tools and an electrical leader in this category is Billtrust, which has recently upgraded their EIPP system.

With leading distributors focused on improving cash flow and offering a variety of invoicing and payment options, we’ve decided to update our customer e-invoicing/connectivity survey and will be surveying contractors for their input. And since we’re asking them about “e”, we’ll also ask them what they desire as elements / information on distributor websites

If you would like to participate (and sending the survey to your customers) give us a call. If you would be interested in ordering the results for only $249, let us know.