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DistTech Success Story

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SHIPS Back Office Business Process Management Solution Leads to Improved Cash Flow and Better Accountability

Founded in 1932, DistTech Inc.  is an industry-leading Dedicated and Common Carrier providing logistics services and returnable container management, primarily for liquid bulk commodities. DistTech combines a modern, secure fleet with the latest technology to offer customers such value-added services as real-time satellite tracking and communication, electronic load tendering, and computerized dispatch. Headquartered in Newbury, Ohio, DistTech operates more than 25 facilities and a fleet of 550 tractors nationwide. The company’s core capability of merging reliable transportation service with real-time information technology is the foundation upon which DistTech has built its growing and loyal customer partnerships.
 

challenge

 
DistTech processes more than 80,000 documents a month to manage the billing and settlements of the over 7,000 monthly loads delivered.  Personnel manually gathered, scanned, and validated every supporting document separately.  DistTech was faced with nearly doubling its administrative function with the addition of a new customer contract.  To support billing and settlements, new processes had to be put in place to efficiently manage all of the paperwork that went along with this growth.  DistTech knew the organization needed a paperless system to replace the current manual process that would automate the document flow, speed up the processing, and position the company to  reduce the billing and settlement cycle time.  DistTech’s past two imaging systems provided basic store, retrieve, and print functionality, but did not offer any of the automation or integration capabilities that would help DistTech realize the efficiencies it was striving to achieve.
 

solution

DistTech quickly determined EBE Technologies' SHIPS enterprise business process management solution would meet its objectives. DistTech implemented SHIPS Accounts Receivable and Payable modules which completely automated the billing and settlements processes and integrated tightly to DistTech’s dispatch system, TMWSuite. A clerk at each of the 23 terminal locations scans the drivers’ trip folders with all of the supporting documentation to DistTech’s headquarters in Newbury. Once received, the documents are indexed and then immediately entered into a workflow queue of the billing clerk responsible for that particular customer. The billing clerk is instantly notified that a load ready to be billed is in their queue. The billing clerk then quickly accesses all of the documents associated with the order number from TMWSuite and Microsoft Dynamics GP accounting system. Once the order and documents are verified, SHIPS rendition printing capability automatically gathers all of the supporting documentation for each order and sends them along with the invoice to the shipper via fax, email, internet, or printed and mailed.
 

results

Since January 2006, when DistTech implemented SHIPS Accounts Receivable and Accounts Payable modules, the company has realized benefits beyond its expectations. “We’ve doubled our document volume and haven’t had to add any additional processing personnel to support it. We support all terminals with only two processing clerks. There is no way we could have done this without EBE SHIPS imaging and back office workflow solution,” said John Hazenfield, DistTech’s Chief Information Officer.

Reduced Billing Cycle, Decreased DSO and Improved Cash Flow
Since all documents are scanned and processed through SHIPS, DistTech no longer needs to wait for the physical documents to be received at its headquarters to begin the billing process. This has reduced the billing cycle time dramatically; in some cases, where terminals are located across the country, the billing cycle time has been reduced from 9 days to 2 days on non-EDI orders. DistTech’s cash flow has improved along with a reduction in DSO of  2 days, which is equivalent to a 1% increase in revenues.

Improved Productivity and Accountability
DistTech has also seen an increase in productivity and accountability.  Clerks are not spending hours manually gathering and sorting documents and matching them to orders.  Instead, the rendition printing capability consolidates all of the documents automatically.  Billing clerks now complete their billing in less than 2 hours.  And, since the system automates the routine tasks, they now only need to manage 20% of the transactions that may be flagged as exceptions as opposed to 100% of the workload.  SHIPS has also encouraged more accountability within the department and throughout the organization.  A supervisor has access to the activity and workload of his or her complete department.  At any given time, he or she can quickly identify where there are lags or overloads and reassign work accordingly.

Improved Accuracy Leads to Increased Customer, Driver, and Employee Satisfaction
With the implementation of SHIPS, DistTech has enjoyed improved customer satisfaction because bills are more timely and accurate. Drivers are happy with the system because they know that as long as they get their paperwork in the system by a specific date, their settlement checks won’t get held up.  And finally, employees are more satisfied because they spend their time more productively.
 

future

Driver Reimbursements and Human Resource applications are currently in process while Vehicle Maintenance, Safety, and Driver Recruiting solutions are scheduled to be implemented soon after.
 

DistTech, inc.

CHALLENGE

DistTech was faced with doubling its administrative functions with the addition of a new customer contract

SOLUTION

SHIPS Accounts Receivable and Accounts Payable for billing and settlements

RESULTS

Reduced DSO by 2 days, equivalent to a 1% increase in revenues 

Reduced billing cycle for non-EDI orders from 9 days to 2 days

Doubled document volumes with no additional processing staff

Increased employee productivity by 150%

Improved cash flow

Improved accuracy and timeliness of billing

Improved customer, driver, and employee satisfaction

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