05 January 2022
Technology is key to maintaining a healthy cash flow
companies have seen profits take a hit during the pandemic despite being busier
than ever. Unfortunately, it’s often an adverse cash flow scenario that’s the
culprit with customers consistently making pay late payments.
Technology can play
a key role in accelerating the invoicing process and ensuring clients
consistently pay by the due date.
What are the consequences of delayed payments?
For many UK logistics
organisations, inefficient ERP, WMS & TMS legacy systems prevent the
optimisation of key processes with a direct impact on productivity and
profitability. Invoice automation
is an obvious area where immediate efficiency gains are possible.
is still largely a manual process within the organisation then significant time
delays are generally the norm. There could be delays caused by the processing of
paperwork by the internal finance team, adding to the negative experience of
deliberately slow paying customers. The adverse effect on cash flow may negatively
impact and constrict businesses in a variety of ways
- Constrain the ability to acquire and serve new clients
- An inability to meet daily running costs
- Inhibit business expansion plans
- An inability to pay your own suppliers
- An inability to maintain external loans & other sources of finance
In the current
business climate, dominated by the additional challenges imposed by the pandemic,
core financial health is critical to business survival. Against this background
it is logical to consider investment in systems that can greatly enhance key
business parameters such as cash flow.
Since the beginning
of the pandemic, the incidence of delayed and unpaid invoices has increased
dramatically. Businesses can counter the adverse impact on their bottom line by
digitising their invoices.
Modern delivery management software, such as
Touchstar’s PODStar package, are equipped with a front-end app that drivers can
use from remote locations. The app enables drivers to instantly generate an
electronic proof of delivery the moment they’ve completed the delivery. This
information is transmitted in real-time to the back office allowing
instantaneous generation of invoices.
Creating invoices automatically
also eliminates the potential for human error via inaccurate re-keying of data.
As a result, customer disputes are also drastically reduced and invoices more
rapidly signed off and the payment process initiated in a timely manner. Digital invoicing also
saves on back-office costs and time by reducing or eliminating labour-intensive
pressures endured by logistics organisations are likely to continue beyond the
current pandemic as companies strive to move beyond survival mode and to
re-focus on growth. Regardless of the background economic climate, any viable
business should consider streamlining its financial processes with a view to
optimising cash flow. For those organisations with a delivery element to their
operation, electronic proof of delivery (EPOD) technology allows the
elimination of paperwork and the optimisation of the delivery and subsequent
invoicing processes. Investing in a modern state-of-the-art software system
like PODStar and digitising your invoices will directly improve your bottom