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Best Practice Guide

How to Reduce DSO

Days Sales Outstanding is the #1 working capital lever. Here's how enterprises cut DSO from 38 to 14 days with intelligent automation.

Cash Locked in Receivables

Every day of DSO locks working capital. For a $500M company with 38-day DSO, that's $52M trapped in receivables that could fund growth.

38 days

Industry average DSO

$52M

Locked working capital ($500M revenue)

23%

Invoices with disputes

5 Levers to Cut DSO

Automated Invoice Delivery

Invoices generated and delivered within hours of shipment β€” not days. Electronic invoicing reduces errors by 85%.

AI Dunning Strategy

Payment prediction scores determine the optimal collection approach β€” email, call, escalation β€” for each customer.

3-Way Auto-Match

94% of invoices auto-matched to POs and receipts. Exceptions routed instantly β€” no month-end backlog.

Cross-System Reconciliation

Payments from banking systems matched to ERP invoices and CRM accounts automatically.

Measurable Results

14 days

New DSO

$32M

Freed working capital

94%

Auto-match rate

-85%

Invoice disputes

Supported Systems

SAP FI/AROracle ReceivablesBanking APIsSalesforce

See How to Reduce DSO: Complete Enterprise Guide in action

Book a personalized demo and explore how DuluthPath delivers these results for your organization.