This is what logistics companies should look out for when choosing their receivables management software


The choice of software for receivables management is difficult and is based on many criteria such as company size, orientation or industry. In the transport and logistics industry, liquidity plays a major role due to the high level of fixed assets. Companies in this sector that manage to reduce their days sales outstanding (DSO) gain an advantage. Modern software solutions can help. Below you will find an overview of the factors that logistics companies should keep in mind when choosing their software solution.

Implementation process

The implementation of new software usually starts with a so-called blueprint session. Here, workflows adapted to the company are individually defined and functionalities, templates and templates for e-mail, letter post and other channels are set up. Make sure that adjustments can be implemented easily and unproblematically in your own company with just a few clicks, even after the Blueprint Session.

Whether in finance and accounting, controlling and human resources or supply chain management – especially in the logistics sector, different ERP systems usually have to be linked with each other. In addition to industry-specific solutions, applications from SAP, Oracle, Exact or Microsoft Dynamics are often in use. A modern software solution should therefore necessarily have API interfaces in order to be able to connect receivables management with data management.

The time of implementation of a receivables management software always only represents the status quo. Look into the future: Can the system easily add new users and administrators? Can company locations be expanded and individual email templates easily set up by the users themselves?

Communication

A trend in receivables management is the so-called “friendly dunning”. Its philosophy is that solutions are worked out together and in harmony with the debtor. Modern software solutions can do this. Individually adapted communication, but also the choice of channels, plays an important role here. The standard way of communicating with debtors is still via e-mail or the classic postal service. It is better to adapt communication to the habits of your debtors. Younger business partners may be more likely to talk via messenger. Make sure that communication always takes place at eye level with the respective stakeholder.

Another advantage is if the e-mail communication is already integrated into your software solution and automatically synchronised with Outlook, for example, thus making it obsolete to jump back and forth between the programmes.

Collenda’s solutions in receivables management

We offer you optimisation of the entire receivables management process – from the first demand for payment and instalment plans to the judicial dunning process and enforcement. Improve liquidity and DSO. We offer the following benefits depending on your requirements with our Open Credit Debt Management and S4Dunning solutions:

  • Improve your recovery rates thanks to solution-oriented measures and functions.
  • Increase your recovery success through dunning processes tailored to your customers.
  • Save time and costs through administrable or automated workflows.

Automation

Due to the relatively large fixed assets – e.g. vehicles, buildings or machines – many transport and logistics companies have a high capital commitment. For this reason, liquidity and equity ratio are often under pressure. Experience shows that companies that optimise their workflows and processes and map them digitally dramatically improve cash flow and days sales outstanding (DSO).

In contrast to receivables management via Excel spreadsheets, the outstanding advantage of a professional solution is that often even complex processes can be automated. Personnel resources can also be saved through automation. When choosing your solution, make sure that dunning intervals can be automated individually.

Mobility

Mobility is the foundation of every transport and logistics company. This should also apply to receivables management. Modern software solutions offer apps that enable the administration or viewing of the dunning process even when on the road. This functionality is very interesting for employees from the sales department, for example, as they are often out of the office and can check current customer data on the road with their smartphone.

Structure (location, business areas, company constructs)

Professional receivables management is essential, especially for logistics companies that operate from different locations. If payment reminders have to be printed out for each location and decisions have to be made per case as to which document goes out and when, this quickly leads to chaos. Receivables data should therefore be structured according to location and possibly business area and collected and sent in a targeted manner at the push of a button or as a workflow. This is not possible with an Excel spreadsheet.

It becomes even more difficult when not only different locations but also different company constructs are involved. A modern solution should allow these to be mapped via different administrations – i.e. different “invoice-writing companies”. It may also make sense to separate B2B and B2C workflows.

Monitoring

A good overview of the receivables portfolio is the be-all and end-all for successful receivables management. This should be possible via a clear dashboard that creates transparency at all times and serves as a basis for decision-making. In addition, a modern solution should include the option to draw individual reports. After all, the famous sentence of the management mastermind Peter Drucker also applies here: “You can’t manage what you can’t measure.

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