Extended Accounts Receivable Days Due to Manual COD/Credit Verification

Definition

The beverage wholesaling market in Germany (€22.2bn, 2,857 players) relies on fast cash conversion to fund ongoing deliveries. COD accounts require immediate payment at delivery; credit accounts require payment within agreed terms. Manual processes: (1) Driver collects payment in cash or card; manually records amount and customer name in spreadsheet; office team re-enters into accounting system 1–3 days later. (2) Credit account customer sends check or bank transfer; payment arrives; staff manually matches to open invoice (often multiple invoices per account); 3–7 day delay if customer remits for wrong amount or references wrong invoice. (3) Dunning and collections are triggered via email or phone; no real-time visibility into which customers are at-risk. Result: DSO (Days Sales Outstanding) stretches from 15–20 days (target) to 25–35 days (actual) for COD, and 40–55 days (actual) vs. 30–40 days (target) for credit accounts.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Wholesale Alcoholic Beverages.

Affected Stakeholders

Accounts Receivable Specialist, Credit Manager, Collections Officer, Finance Manager (Working Capital), Delivery Driver (COD payment collection)

Related Business Risks