Situation
Unified Door o Hardware Group is a value-add distributor of doors and hardware. Unified is a private equity roll-up with 15 companies across 28 locations. Unified continues to enhance its national footprint through acquisitions.
Challenge
- Unified believed they were missing out on Accounts Payable discounts from their more than 4,500 vendors by not paying within the discount terms.
- The lack of visibility into detailed data on each vendor, invoice and payment information, meant they were potentially leaving money on the table every month.
Action
- Compiled a detailed list of vendor terms for each entity then appended every payable transaction.
- Created both detailed and summarized views by entity comparing invoices and the corresponding payment dates to show how each item was being paid based on every vendor’s term, allowing the accounting team to prioritize payments where discount opportunities were available.
- Calculated the net impact on liquidity, discounts gained and lost, and days-to-pay by entity, vendor and invoice.
Result
$1 MillionYoY net increase to EBITDA
35% IncreaseIn discounts realized
“BUCS helped us recognize discount opportunities we were previously missing out on, and the net impact since using the model has added $1 Million to EBITDA.”
Matt Thompson
Vice President of Finance
Systems Integrated
25 QuickBooks Instances
2 Microsoft Dynamics NAV Instances
2 Housecall Instances
1 FieldAware Instance
1 FieldEdge Instance
1 SAMPro Instance
