Scanning Solution Realizes 1.5 Million for Food Distributor

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Client: Mid-sized Food Distribution Company in a Major Metropolitan Region.

ILM Contact: CFO

Problem:

Poor cash flow due to outstanding accounts receivable from clients who received partial or incorrect shipments.

When delivering goods to merchants such as supermarkets, drug stores, and discount retailers, the receiving clerk signs the bill of lading or packing slip. This document is then submitted with the invoice for payment to the supplier. Sometimes items delivered are damaged, incorrect, or missing and clients withhold payment of the invoice until resolved. Once the discrepancy is resolved, the invoice is resubmitted with the signed bill of lading. The bill of lading is filed with the copy of the original invoice.

Under this system, the client generated thousands of invoices per week. Tracking these invoices and bills of lading were both time and labor intensive as each document needed to be copied and then attached to the revised invoice for payment.

It was determined that it would be more cost effective to simply scan all of the invoices and bills of ladings, index them based on several key fields, then use a pull report generated from the accounting system to then print back the invoices and bill of ladings from the images.

ILM Solution:

We scanned and indexed the documents, printed out the invoices and bills of lading from the pull report.

Results:

Better cash reserves to smooth out cash flow problems by collecting over $1.5 million dollars in outstanding accounts receivable.