What should Tom Sloane and U.S. Pharmaceutical of Korea do to improve collections from wholesalers?

To improve collections from wholesalers, Tom Sloane and U.S. Pharmaceutical of Korea can take the following steps:

1. Review credit terms: Evaluate the existing credit terms provided to wholesalers. Tom Sloane and his team should assess whether the terms are competitive and reasonable. If necessary, they should consider revising the terms to incentivize prompt payment.

2. Streamline invoicing and payment processes: Assess the efficiency of the invoicing and payment processes. Simplify and automate these processes as much as possible to minimize errors and delays. Utilize electronic invoicing and online payment systems to expedite the collection process.

3. Develop strong relationships: Build and maintain strong relationships with wholesalers. Regularly communicate with them to understand their needs, address any concerns, and ensure timely payments. Foster a cooperative and mutually beneficial partnership.

4. Analyze creditworthiness: Prior to extending credit or establishing credit limits, conduct thorough credit checks on wholesalers. Evaluate their financial stability, payment history, and creditworthiness. This information will inform decisions about credit terms and help minimize the risk of non-payment.

5. Implement a credit control system: Establish a system to monitor and track outstanding payments from wholesalers. Create a proactive approach to follow up on overdue payments. Set up reminders and escalation processes to ensure timely and consistent communication with delinquent accounts.

6. Offer incentives for early payment: Consider implementing discounts or other incentives to encourage wholesalers to pay their invoices early or on time. This can help accelerate collections and improve cash flow.

7. Seek legal assistance, if necessary: In cases of persistent non-payment or disputes, seek legal advice to enforce collections. Legal actions like sending a demand letter or pursuing small claims court may be necessary to recover outstanding debts.

It's important for Tom Sloane and U.S. Pharmaceutical of Korea to continuously monitor and evaluate their collections process, making adjustments as needed. Clear communication, efficient processes, and strong credit management will contribute to improved collections from wholesalers.

To improve collections from wholesalers, Tom Sloane and U.S. Pharmaceutical of Korea can follow the following steps:

1. Review the current collections process: Analyze the existing collections process and identify any inefficiencies or gaps in the system. This may involve evaluating the methods used to monitor and track payments, communication channels with wholesalers, and any existing agreements or contracts.

2. Set clear payment terms and conditions: Clearly define and communicate the payment terms and conditions to wholesalers. These should include details such as payment deadlines, acceptable payment methods, and consequences for late or non-payment. Make sure these terms are agreed upon and documented.

3. Implement consistent follow-up procedures: Establish a systematic approach for following up with wholesalers regarding outstanding payments. This may involve regular reminders, notifications, or periodic communications to ensure that payments are made on time.

4. Improve invoicing and documentation: Ensure accurate and timely invoicing is in place. Provide all necessary documentation and supporting details to wholesalers, making it easier for them to process payments promptly. Use technologies such as electronic invoicing or automated systems to streamline the invoicing process.

5. Establish strong relationships with wholesalers: Develop and maintain positive relationships with wholesalers. Regularly communicate with them to understand their needs, address any issues, and maintain open lines of communication. This can help foster a sense of trust and encourage timely payments.

6. Implement a collections tracking system: Utilize a collections tracking system to monitor and keep records of outstanding payments. This can help identify any patterns, outstanding accounts, or persistent late-paying wholesalers. By having a centralized system, it will be easier to manage and prioritize collections efforts.

7. Enforce consequences for late payments: Clearly communicate the consequences for late or non-payment, as defined in the payment terms and conditions. This may involve charging late fees or implementing stricter credit policies for consistent late payers.

8. Provide incentives for prompt payment: Consider offering incentives to wholesalers who consistently make timely payments. This could take the form of discounts, preferred pricing, or other benefits that reward good payment behaviors.

9. Seek professional assistance if needed: If persistent payment issues continue, consider seeking professional assistance from debt collection agencies or legal services that specialize in collections. They can help escalate the collection process and recover outstanding payments through legal means.

By following these steps, Tom Sloane and U.S. Pharmaceutical of Korea should be able to improve collections from wholesalers and maintain healthier cash flow.