Route Accounting Software for Distributors – Why you need to buy one

Route Accounting Software for Distributors – Why you need to buy one

Welcome back to the Laceup blog. Route Accounting Software for distributors and manufacturers is a computer solution running in mobile devices and computers in the back office that automates the delivery process in stores. The delivery person uses the mobile device to input sales, returns, cash receipts, and inventory transactions at the customer’s site. At the end of the day, the information collected is transferred either directly or by internet to the back office computer. From there it is transferred into the accounting system.

If you are a manufacturer, wholesaler, or distributor using the Direct Store delivery mode, there are five main reasons why you should buy DSD Route Accounting software.

Reason 1: Eliminate data entry time

If you don’t have Route Accounting software implemented, you need to input manually all the invoices and credit generated on the routes into your system, and that implies a lot of time and manpower. Just to give you an idea, suppose that you have 10 drivers generating an average of 10 invoices per day each and that your data entry personnel keys the invoice in 1.5 minutes. That means that this person will spend 150 minutes per day just transcribing information into the system. Using Route Accounting software will eliminate this wasted time so that your back office people could focus on more productive activities.

Reason 2: Eliminate data entry errors

There are two places where you can make errors when doing invoices by hand; in the field and the back office. Field errors are the ones made by drivers while generating the invoice in the store. They can pick the wrong item, place the wrong price, or make a mistake with quantities. This type of error not only affects your profits, since you will end up issuing a credit, but also the relationship with the customer.

The same type of errors that a driver can make in the field when issuing an invoice, can be made by the data entry person in the back office while keying the invoices: wrong item, price, or quantities. The difference is that now those errors are messing the inventory, distorting the balance sheet, and affecting your profits.

• Entering the wrong item or quantity will produce a shortage of that item and an overstock of the correct item leading to the expiration of products and order at the wrong time.
• Wrong prices will distort the company´s financials and affect collection. If the price that you entered is lower, you will be collecting less than you should have; on the other hand, if the price is higher, you will attempt to collect more, which affects the relationship with the customer.

Good DSD Route Accounting Software makes the invoicing automatic and synchronizes it with your accounting software or ERP.

Reason 3: Minimize the credits

Credits are generated when a store returns products. Besides errors made during invoicing or picking, credits are issued when a product is not moving on the shelf. Maybe the product is not adequate for the store’s clientele, or maybe you oversold it.  It could also be that your Warehouse Management software does not have a good FIFO policy. Credits stress customer’s relationships and directly affect your profits. So, one goal of DSD Route Accounting Software is to minimize the number of credits. This is achieved by a sound reporting structure. The system must report how many credits you have for a customer; what customers are moving any product and at what rate. In summary, you will have some insight to be able to determine whether you should continue to sell a product to the customer or whether or not you should pull the product out of the store.

Reason 4: Truck inventory tracking

If you have a suitable Warehouse Management System or a sound inventory control process, you will know exactly what is loaded on the truck. But if you don’t have DSD Route Accounting software, having visibility on what happens in the truck and the store is practically impossible. When the driver gets back, they have to calculate how much of each item was sold, credited, or damaged during transportation.  The formula is very simple:

Qtty on truck = Qtty loaded – qtty sold + returns + damaged

Imagine doing that for 100 items which is what an average DSD company normally moves per truck. You will never get the job done.  DSD Route Accounting software allows you to automatically calculate what went on the truck, what came off the truck, what was returned, and what was left over. So, instead of focusing on doing all the math correctly, you will be focusing on counting the inventory to make sure that the driver did not short or stole from you.

Reason 5: Get full control of the drivers

If you want to maximize productivity, you need to be able to track how much time the drivers spent at each customer and where they went during the day. With DSD Route Accounting software you will be able to view the movement of your trucks live on a map and the time spent in every store. The information gathered will give the tools required to evaluate the driver’s performance. For example, the time he spent at the store must justify the size of the invoice and the time spent between stores must be compatible with the route scheduling (assuming you have Route Management software) integrated with your DSD Route Accounting software.

I hope this article helps you decide to get into DSD Route Accounting software. In the next blog, I will tell you the features you should be looking for when selecting the most adequate DSD Route Accounting software for your operation.

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