September 11, 2023

1/5 of All Direct Store Delivery (DSD) Invoices Have Errors

By: Jake Ahle

Category: Invoicing

Why it’s a problem and what you can do about it

Direct Store Delivery (DSD) distribution is complex, and managing invoices is one of the biggest challenges. After processing millions of invoices, we’ve found that 1/5 of all DSD invoices have errors. These errors have a significant negative impact on DSD businesses.

Why invoice errors occur:

• Incorrect item quantities: Invoices may list incorrect quantities, and drivers may accidentally deliver or pick up the wrong number of items.
• Incorrect Prices: Prices may be incorrect due to entry errors, complex pricing structures, or outdated price book information.
• Missing or incomplete information: Invoices are often full of missing or incomplete information, such as the customer’s address, the order number, or the product descriptions.
• Duplicate invoices: Invoices may be accidentally duplicated, which can lead to retailers being overcharged or refusing to pay altogether.

Invoice errors lead to a number of problems:

• Incorrect billing: Billing discrepancies can lead to retailers being overbilled for delivered items or distributors receiving payments below their due amount.
• Delayed payments: Manufacturers and distributors may receive delayed payments from retailers due to invoice errors.
• Cash flow concerns: Delayed payments can impact cash flow for manufacturers and distributors.
• Increased workload: DSD businesses need to spend time and resources identifying and correcting invoice errors, reducing efficiency.
• Damaged relationships: Retailers may become frustrated with manufacturers and distributors that repeatedly send incorrect invoices. These errors can damage relationships and lead to retailers switching to other vendors. Additionally, when a retailer pays slowly or disputes invoices constantly, distributors may stop servicing their stores.

How to reduce invoice errors:

• Automate invoice processing: DSD businesses should invest in automation tools to streamline invoice processing and reduce the risk of human errors.
• Use standardized pricing structures: DSD businesses should simplify their pricing structures to make it easier to reflect prices on invoices accurately.
• Implement quality control procedures: DSD businesses should implement quality control procedures to review invoices for errors before they are sent to retailers.
• Use technology solutions: Several technology solutions, like Acuity by Tactiq, are available to help DSD businesses reduce invoice errors and streamline payment processing.

By taking these steps, DSD businesses can reduce invoice errors and improve their overall efficiency and profitability.

How Acuity by Tactiq helps: Consolidated Invoicing and Price Book Enforcement

Acuity by Tactiq provides consolidated invoicing and price book enforcement, so invoice errors are eliminated, consistent price books are maintained, and invoices are processed faster.

How does Acuity work?

1. When product gets delivered to stores, Acuity processes the invoices and puts them through a rigorous validation check.
2. Once invoices are validated, Acuity consolidates them into one EDI transmission for easy handling and review by the retailer.
3. After retailers pay, all parties have easy visibility and tracking to follow the payment progress for fast and effortless payment.

Invoicing and paying invoices no longer need to be a headache! Acuity makes it simple and easy and makes you more efficient and profitable.

With Acuity, you develop stronger and more profitable relationships with your DSD partners with better communication and payment processes.

If your business needs help with DSD product invoice errors, Tactiq can help. Inquire about Acuity today.

Final Note

For further insights, refer to similar content on Tactiq's insights page.