If you are a buying group that takes billing on behalf of your members then most likely you are operating like a bank, except you have a bigger credit risk. A big A/R write-off can affect the entire co-op and membership and could wipe out profits for the whole year.
Based on our 20 years of buying group experience we have seen the following.
- It is important to have tight credit controls on all members and also from the vendor angle have the ability to manage which orders get shipped to which members.
- Specials, trade show orders, extended terms and different exceptions at vendor, member and even product level adds a lot of complexity in managing the credit department.
- When orders are placed directly from a member to a vendor and the buying group first hears about it through an invoice from the vendor it may be too late to manage the credit.
Our Credit Management Solutions for Buying Groups take care of all these complexities.
These are the features of our Credit Management Solution:
- Using Reverse Purchase Orders (order acknowledgements) from vendors, the system creates a Purchase Order in the system which can then be credit-checked against a member’s credit limit and outstanding A/R (through data integration with your ERP/Accounting system), in-transit orders, credits and open claims.
- The system calculates payment trends, pay quality index (a proprietary credit rating system for buying group members) and alerts the credit manager about possible credit risks in the future.
- Manage “true” exposure to the co-op by adding open orders, credits and outstanding A/R.
- Match orders to invoices through an intelligent data mapping in the system which leverages AI to learn the order to invoice matching over time as more data is entered in the system.
- Maintain credit limits, credit watch and reach out to vendor credit departments and member A/P departments from the system.
- Set up approval system for orders using different rules and tolerance limits. Auto-approve orders and approve orders through your phone or web.
- A complete end-to-end Credit Management system for a buying group- the only way a Credit Manager at a buying group can truly manage credit for the entire membership.
Built using C# .NET, Microsoft SQL Server, Analysis Services, Crystal Reports, Power BI and can be hosted as a private, hybrid or public cloud service.
Integrate with your current Accounting system, website, ERP system.
Customize the solution to meet any business need for managing credits limits, cash and exposure to your Buying Group and your membership.
Can be installed on premise or in a “true” cloud environment so that the solution is highly scalable, secure and affordable.