Electronic payments offer distributors increased efficiency and transparency. Combined, these two factors make distribution networks more robust and effective. Electronic funds transfer (EFT) payments can help alcohol distributors mitigate complex supply chains and address some key security challenges. Let’s take a look at exactly how electronic payments can increase security for distributors and their network of retailers.
Reduce The Amount Of In-Transit Or On-Premise Cash
Loss prevention is a serious issue in the alcohol industry. However, the risk of theft or harm to employees is still a legitimate concern when it comes to check and cash payments. While many businesses rely on armed personnel to transport money, findings by the FBI indicate that this only increases the likelihood of death or injury. With digital transactions, no human intervention is required except for authorizing payments, which happens with the swipe of a finger. The primary benefit for alcohol distributors is that neither they—nor their employees—need to carry around cash or checks.
Meet Compliance Demands In A Highly Regulated Industry
Next to tobacco, alcohol is the most highly regulated industry in the USA. As such, both retailers and distributors are required to keep records of sale intact for long periods of time. These records should include the date of sale, name and address of the purchaser, type and quantity of goods, and serial numbers of full cases. Managing this data in volumes can become complex for large distributors. The fact that selling alcohol on consignment is prohibited across the country only adds to this complexity.
Due to such high regulatory demands, alcohol distributors may unknowingly transgress certain state and federal compliance requirements. Electronic payments protect vendors and retailers from employee or management mistakes and facilitate immediate payments. By allowing retailers to settle or dispute invoices in real-time, deliveries can be dispatched considerably faster.
SEE ALSO: 4 Things Every Alcohol Distributor Needs
Increase Process Transparency
Payment security and loss prevention can be interpreted in many different ways. From the retailer’s point of view, electronic payments are attractive because they streamline receiving processes. There’s no need to handle money or write checks or money orders; the time devoted to these tasks can be re-directed to improving supply chain efficacy.
EFTs enhance payment security because transactions can be viewed, tracked, and monitored at any time. This reduces the propensity for fraud and minimizes human error. A single view of all payment transactions is also hugely beneficial—particularly during busy times—as cash flow calculations can be made at a glance without lengthy manual invoice reconciliations.
iControl Payment Solutions Safeguard Both Distributors And Suppliers
Electronic payments solutions are beneficial to both alcohol distributors and retailers, as they increase safety and promote payment security. They also streamline the receiving process, providing a convenient platform where all financial documents can be accessed from a single portal. This way of working also improves relations between supply chain partners who deal with the inherent risks of moving alcoholic goods in high volumes.
Chat with us to learn more about how our mobile payment solutions can help you streamline operations and reduce risk across your supply chain.