What a year, we will all remember 2020! It has also very tough for most of our customers.
The food and Retail industries have the most negative impacts
Our customers in the Food and Retail industries are in the middle of a perfect storm. In some cases, they have lost 50 to 70% of their business but the worst part is that the remaining customers are also taking more time to pay.
Cash is king and everybody is trying to preserve it. One of our new customers is a Vegetables distribution business and they saw their DSO triple in April and May. They deployed Troveworks in June and started collecting money right away. Their goal is to bring back their DSO to where it was prior to the Covid crisis.
High Tech boost stays strong
Have you tried to buy a webcam or a keyboard lately? well good luck, the Logitech website has been out of stock for months. How is it possible? There was an initial boost at the beginning of the crisis but now that the initial surge has passed, we continue to see high demand.
The move to work from home is here to stay, most families are investing to make the switch. But it is not always good news for our customers in the high tech sector. We recently saw DSOs increase by 50% due to cash preservation that everybody is practicing. The supply chain costs have also surged to meet the higher demand and our customers are stuck between slow payment and higher costs.
We have been busy in May and June deploying our accounts receivable software to all these customers. They tend to use the Enterprise Edition because it gives them the ability to have multiple collection agents working together and balancing the workload thus reducing DSO automatically.
My favorite sector positively impacted by COVID-19: Kitchenware
We have all experienced this, less dining out means more kitchen time. And we have seen strong sales in the high-end kitchenware market. Wüsthof or Henckels knives anybody?
But with new sales channel, replacing the traditional Macy’s retail stores, our customers have to educate their new sales channel that paying on time is important. New collection workflows with reminders, notification of past due invoices are critical to set the new sales channel on track. Therefore by using AR automation software you can keep track of invoices and due payments.
Stay safe everybody and don’t hesitate to share with us your COVID-19 experiences.