Teaching Old Dogs New Tricks

The Birmingham manager was complaining about spending money to pay for someone to scan invoices, delivery receipts and quotes. It seemed like a waste of time and money. If a customer needs an invoice copy or a proof of delivery, they can call the branch and someone, a cashier, a clerk, an order taker, whoever may have some spare time, will go in search for the document. They’re kept in some sort of order in boxes out in the warehouse. Once they find it, they will fax it to the customer and then, put it back.

This is how business was done back before computers, but the Birmingham manager saw no reason to change. Scanning the documents, the credit manager explained, creates an image in the computer so that when a customer asks for it, the collector can bring it up and e-mail it to the customer while they’re still on the phone. The Birmingham manager was dubious and the credit manager was extolling the benefits of “modern” technology. Little did the credit manager know that there are now programs that allow customers to retrieve invoices and other related documents on line, twenty four hours a day seven days a week without ever calling the vendor. These documents are created at the time of billing, so there is no need for a scanner.

Technology is offering so many new possibilities at a rate so fast that it can pass you by in minutes rather than in days or weeks.

Today’s market conditions demand that every credit sale be made. There just are not enough sales possibilities out there to turn any down. Yet the risk of loss is very high. The more controls the credit manager has, the better. However, good controls are not meant to restrict sales, but to manage risk and the better the controls, the more risk that can be taken on. Recent innovations can greatly enhance a credit manager’s ability to control and therefore manage credit.

The businesses that are going to succeed during this recession are the ones that efficiently manage their account receivable and are able to go out on a limb, because the they have the technological resources to do so. Their information about the customer’s debt, payments and credit status will be up to the minute and communication to and from the customer will be instantaneous. They will be no waiting for a check to arrive in the mail, no searching for documents that may not have been properly scanned, no waiting for month end to see recent billing. Credit managers will manage with a complete dash board of data. This allows them to take chances the competition is afraid to take. In today’s world, good credit management is a sales advantage.

Strategic Credit Management Solutions can help you find those resources. Contact us at patrickpowers@sbcglobal.net and see our website at http://powerscredit.com/. Your comments are welcome.