Posts Tagged ‘payment’

Halt Next Day Delivery And Increase Your Business Cash Flow

June 18, 2010

by Doug Smith, President, The Woodhaven Group

It’s the little things that can blow a hole in your business cash flow.

Take for instance next day delivery.  As much as I like and am impressed by the efficiency of FedEx and UPS to deliver a letter or package overnight, I see too many businesses that still spend extra cash overnighting documents that can be sent using less expensive options. You should take time to identify how much this expense is costing your company annually.  You will be surprised how high it is.  

My suggestion is to establish a written policy of what documents must be overnighted such as a proposal that must meet a deadline in order to get an important sale.  Instead of overnighting a check for the payment of an invoice, use an ACH payment process if it absolutely has to arrive by the next day. 

Other correspondence can be sent by regular mail and should arrive in 3-5 days which, I have found, is sufficient for most business transactions that has to arrive as a hard copy.  In most cases business correspondence can be sent by fax or email attachment.

Don’t underestimate the potential cash savings by doing this.  If your employees still overnight documents instead of the less expensive options available, then you may find there are thousands of dollars that can be put to better use growing your market share.

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