Electronic document distribution refers to the management and punctual distribution of a company’s service statements, customer invoices and associated dunning letters. Its automation of such tasks, along with ability to reduce costs and increase document security means that electronic document distribution is a significant threat to the postal service.
Businesses all over the world are converting to electronic document distribution as their primary means of sending invoices or statements. The development of simple business invoicing and document management computer programmes means that the task of using electronic document distribution is easier than ever before. This fact is enhanced by companies acting as go betweens for businesses and their clients, to whom the electronic document distribution and document management tasks can be outsourced. A good example can be found on the Netsend website. Netsend are a company who specialise in electronic document distribution and are experts in document management.
Good document management includes the ability to balance customers who receive invoices, statements and dunning letters via electronic document distribution with those who do not. Electronic document distribution is not for everyone, and this is where the post office’s ray of hope appears. It is highly likely that older or poorer business customers may not be in possession of either a computer or an internet connection. A company with enforced electronic document distribution would lose these customers, and for this reason many companies accommodate a diverse client base. As Netsend will show, there is still an impressive market for paper document distribution and document management.
When customers fail to pay their invoices, the process of contacting them and acquiring the owed money can be painstaking. Electronic document distribution uses computerised technology to automate the process of sending follow up letters to those failing to pay an invoice.
Electronic document distribution relieves the human need to chase late payments as it electronically registers when an invoice has been paid. The document management software will then be able to automatically send dunning e-mails at regular intervals if the invoice remains un-paid. After a set period of time electronic document distribution will acknowledge that no dunning letters have been followed up with payment on the part of the client and the company will be notified.
Electronic document distribution triumphs over conventional postal methods of dunning because of its speed. When a company is awaiting an invoice payment they are losing money in the form of interest. Therefore the faster that money can be obtained, the more efficient that company will be.