DistTech Success Story
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.
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.
DistTech was faced with doubling its administrative functions with the addition of a new customer contract
SHIPS Accounts Receivable and Accounts Payable for billing and settlements
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