Distribution Management Systems

To function properly, the distribution chain requires different parties to meet their various obligations at each touch point. Together, manufacturers, wholesalers, retailers and carriers make distribution possible and ensure that customers receive shipments on time and undamaged.

Given the moving parts involved, there are a number of ways the distribution chain can go astray, one of which involves proof of delivery (POD) documents, signed by recipients. When they don't manage a proper POD system with their carriers, businesses have no way to defend themselves against claims that goods were not received or that they arrived damaged. The POD process needs to move quickly and remain organized or businesses could be unknowingly subjecting themselves to additional expenses.

OptiDoc's Distribution Management Systems, supported by Advanced Technology Services, have saved clients millions of dollars, as our solution reduces the delay between the time when a product is delivered and cash closing. As a leader in document management programs, Advanced Technology Systems has worked for 20 years to evolve our full suite of solutions to fit the unique needs of our clients.

The OptiDoc process for optimizing POD collection

At the heart of the OptiDoc's Distribution Management System is proven electronic document management technology, along with scanning and imaging services that have helped a number of our clients convert to paperless offices. We apply the same to end-to-end solutions to our Distribution Management Services, which we complete through the following process:

  • POD collection from carriers is automated via the OptiDoc POD generator
  • OptiDoc can accept data from PODs whether carriers have an existing document imaging program in place or if they manually scan their documents
  • Information is uploaded by the POD generator into the OptiDoc electronic document management system
  • POD information becomes available to all financial associates within the organization who access to the OptiDoc system
  • eports are accessible through the POD database in common standard formats, such as Crystal Reports or Report2Web.

The reporting function is particularly helpful to businesses, as it provides a comprehensive set of data, including:

  • Total PODs expected by shipment
  • Total PODs scanned (percentage of those expected)
  • Total PODs scanned incorrectly, along with error rationale
  • Carriers with outstanding POD submissions
  • Carriers with incorrect POD submissions.

How OptiDoc's Distribution Management Systems saved one client millions

Advanced Technology Services worked with one company to optimize the OptiDoc solution to its specific needs, saving it an estimated $1.4 million annually through A/R balance reduction. First, we reached out to the client's trucking carriers to request that they send signed PODs to the client's OptiDoc database. This allowed the company's collection clerk to collect all final proofs in the same system, where they are easier to access. Because of OptiDoc, the client reduced the amount of time from delivery to final proof from an average of 45 days to just under 14. The cost savings were considerable and immediate, including $13 million saved in the first year alone and $1.4 million each year thereafter. Annual savings were generated in the following areas:

  • $552,000 claims and POD sourcing annual expense elimination
  • $520,000 annual opportunity cost reduction based on reduced A/R balance
  • $324,000 through the elimination of the annual 21 percent payment to Creditek for collection of outstanding claims (reduction in current manual effort frees Deduction Management associates to manage claims internally)
  • $220,000 through the elimination of the expense of manual POD sourcing and paper-based copies (10,000 PODs per year at $22 per POD)
  • $7,500 through the elimination of temporary labor
  • One contractor (average billable hourly rate of $18) scanning PODs manually one day per week.

This example is just one of many that prove the savings that Advanced Technology Services and our OptiDoc solutions can help a business generate. Our Distribution Management System is just electronic document management system every business needs.