P21 helps distributor cut AR days

Staff -- Industrial Distribution, 8/1/2005

Two and a half months after meeting with a Prophet 21 Application Consultant, distributor E.F. Bailey Co. saw accounts receivable days drop by 31 percent, and profit points increase by 1.5 percent, according to the distributor and Prophet 21. One of Prophet 21's Professional Services offerings, application consulting helps distributors streamline daily operations by providing insight into how they can best use their solutions.

The Application Consultant worked with employees to understand their processes, and suggested ways they could get the data into their solution most efficiently. E.F. Bailey employees now automatically import prices as soon as they receive them, instead of waiting weeks or months. The consultant also worked with purchasing and warehouse staff to improve the company's stock classification structure as well as explained the impact of outstanding receivables on the company's bottom line. As a result, employees worked with the consultant to develop processes that ensure employees intervene when an account reaches a certain number of days outstanding.