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[Distribution] Weathering the perfect storm

The distribution industry lies in the path of a perfect storm.

It’s always been a complex sector and, as business volumes grow, companies are feeling the strain of that complexity even more. At the same time, costs are rising and competitors are putting margins under pressure.

The sector is battling severe disruption from digital giants and disintermediation by new entrants from the manufacturing and retail sectors. Many companies are responding by digitizing their e-commerce, warehouse and transportation operations.

The risk is that, if they do not also modernize their financial processes, such as the order-to-cash cycle which is so critical to a company’s financial health, they may fail to realize the full potential of their digital investments.

Distributors who digitize their financial processes will have a competitive advantage. They will be able to differentiate themselves on the basis of superior customer experience. Providing modern online options for ordering, billing and payment will help them retain and grow their customer base at this intensely competitive time.

This paper shows that only by adopting accounts receivable automation can distribution companies secure the competitive advantage they need to succeed in the era of digital distribution.

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