Supply Savvy

Specialized News for Distributors
December 2010


Collections Strategies
Upcoming Events
Supply Results
You Can Say That Again





Trade Meetings


North American Foodservice Equipment Manufacturers Show on February 10-12, 2011 in Orlando, Booth 3902.

FEDA Annual Convention

Food Equipment
Distributors Association Convention
, Saturday, April 2, in Phoenix.


E-Commerce Best Practices

Collection Methods that Work

Contact ADS Solutions for Webinar details. What would like to hear more about?


You Can Say That Again

Success is how high you bounce when you hit bottom.

- General George Patton, U. S. Army General


The Check's NOT in the Mail because the Post Office was on Fire


Bob Tharnish, a 30-year veteran of the collections industry from ABC-Amega, offers practical tips for successfully handling accounts receivable in the latest ADS Solutions webinar for wholesalers. Bob has heard all the excuses for non-payment including, "I couldn't mail the check because the post office was on fire" and "I'm indignant so I don't have any money."

Professionalism breeds success according to Bob. He suggests gathering as much information as possible about the account, having notes on previous conversations in hand, and then asking for the owner or CFO of the company owing money. Use the "collector's voice" and keep in mind that your non-verbal body language can convey as much as 55% of what's being communicated - even over the phone.

Bob discusses the 7-step collection call and the importance of the "strategic pause" in determining the outcome. Your goal for each call is to collect in full with one call, to gather as much information as possible, and to leave the call with a common understanding and agreement for future action.

Using distribution software that enables you to fax or email an invoice or statement directly to the customer while you are on the phone is another aid to collections. Be sure to document all interactions with the customer in your distribution software system so you can remind the customer of his or her previous commitments.

The importance of timely collections can't be overstated. Don't let companies in arrears set their own timeline for payment. Studies have shown that three months after the due date 70% of overdue accounts can be collected. After six months, only 50% of debts are usually paid. After a year, the chances for collecting a debt, even when using an agency like Bob's, go down to 25%.

Bob's techniques can increase collection rates. Contact Greg Tognoli to participate in the next Collections Webinar.

Supply Results

Business Conditions Improving for Distributors

The unprecedented low inventory levels reported by wholesale distributors in April 2010 can be a factor in decreasing sales opportunities. McGladrey's 2010 Distribution Industry Report also indicates that 71% of distributors expect increases in health care costs to contribute to a significant rise in employee expenses.

This year's survey showed a 14% increase in the percentage of respondents who indicated that their businesses are "thriving and growing," a total of 23% of the 1,061 surveyed. All in all, 76% of distributors surveyed expect their businesses to recover in 2010 or 2011. McGladrey concludes that business conditions are improving for the first time in three years.

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About ADS Solutions

Long-Term Solutions for Distribution

ADS Solutions Advantage software has been helping distributors run their businesses for more than 25 years.

Our fully-integrated distribution accounting system simplifies complex pricing, commissions, and order processing.

ADS Solutions is committed to the lasting success of our customers. Contact ADS Solutions with suggestions or questions.



Supply Savvy is published by ADS Solutions Corporation. Contact with questions or for more information about ADS Solutions products and services.

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