AI for increased profitability in the wholesale industry

Wholesalers face unique challenges, especially when capital costs rise. The finance department must contribute to efficient workflows throughout the organization, and nothing opens more opportunities than artificial intelligence (AI).

After numerous interest rate hikes in the past two years, the era of "free" money is over, and this might continue for some time. This is a concern for wholesalers who often face tight margins and large volumes. It will become even more critical to maintain control over logistics, ensuring fast customer payments and even requesting prepayments when the risk is high.

However, credit terms and capital costs involve much more than just the payment deadlines you offer customers. Few wholesalers have survived the past decades without continuously working on operational efficiency. While most have invested heavily in procurement systems, logistics, and inventory management solutions, fewer have focused on digitizing the finance department.

This is unfortunate because it limits the company's ability to develop efficient processes in other parts of the organization. Fortunately, this is where AI can create significant improvements. Below are three specific ways in which AI can boost efficiency for wholesalers (and other businesses with similar challenges):

1. Automatic data capture

Many wholesalers deal with suppliers from outside Scandinavia, often handling foreign-language and non-standardized PDF invoices. As a result, a significant amount of time is spent on manual invoice processing. While many systems claim to offer automated invoice processing, they are often limited to extracting data from the invoice header.

AI platforms like SEMINE, can read and extract data from all invoice line items, currencies, and relevant data points, including those from international invoices. This reduces manual workload and minimizes the risk of errors, streamlining the entire process.

READ MORE: Why is the finance department refusing to save one day per week?

2. Automatic handling of cost invoices

Processing cost invoices manually can delay approvals and result in late payments. By implementing AI for AP automation, invoices can automatically be coded, routed to the appropriate approvers, and processed seamlessly. The system integrates easily with existing ERP systems, offering features like PO matching and automatic coding of non-PO invoices. This reduces the risk of human error, ensures timely payments, and helps negotiate better terms with supplier

3. Efficient Exception Handling

Another important aspect is the workflow triggered when what is delivered does not match the order.

With SEMINE, discrepancies in invoices can be quickly identified at the line-item level and automatically sent for review by the purchaser for further action. It's also possible to send an email directly to the vendor from the solution to highlight and address any discrepancies

LES MER: This is how easily the focus can be shifted from punching to analysis.

My Challenge to You

I know that every software provider is full of praise for their products. But if you find yourself thinking, "It would be great if we could achieve just one of these improvements in our organisation," I challenge you to do two things:

1. Download the Webinar Recording

We recently hosted a webinar on the practical use of AI for wholesalers. Our customer, Jensen & Co, shared their AI journey and how SEMINE helped them solve both industry-specific challenges and broader business issues.

2. Contact Us for a Hands-On Demo

Give us the opportunity to show you how our solution can address the challenges and pain points your organisation faces.

Now is the perfect time to take action in the finance department to secure efficiency gains. It could strengthen your company’s competitiveness for years to come, and most importantly, it will provide a more engaging work environment for everyone in the finance team.