Electric Distributor Improves Efficiency with Deluxe Receivables

This case study outlines the experience of McNaughton-McKay Electric Company, an electrical and automation product distributor, in enhancing its accounts receivable (AR) processes through the implementation of Deluxe Receivables. The company faced significant challenges in managing a diverse range of payment methods, leading to inefficiencies in cash application and increased days sales outstanding (DSO). Amy Cook, who manages the credit and AR portfolio, highlights the difficulties in matching remittance information to incoming payments, which resulted in unapplied cash and manual processing burdens. In February 2022, McNaughton-McKay adopted the Integrated Receivables solution provided by Deluxe, facilitated by their banking partner, Comerica. Concerns regarding data security were addressed through the secure platform, allowing for confidence in the solution. Post-implementation, the AR team reduced its cash posting staff from 2.5 to one person and decreased payment processing time from eight hours to two hours daily, significantly improving operational efficiency.