High sales volumes lead to high profitability. Gross margins on many units sold will firstly recover your fixed establishment expenses like office rent and depreciation, and then generate surplus profits.
And good document management software can help you achieve higher sales volumes. We look at some specifics of how this becomes possible.
Significance of Document Management to Business Operations
In a business of more than a few employees, numerous documents (of varied kinds) are likely to be generated in the course of business operations. Unless these are organized and stored efficiently, subsequent retrieval becomes a highly time-wasting exercise (if not an impossible one).
And time is very valuable in business. You have to go after sales, economic sources of supplies, shipping arrangements, cash collections and so on. A small business is more than likely to be pressed hard for time. If that precious time is wasted in searching for unorganized documents, you will indeed be harming your business.
Good document management software allows you to capture all documents efficiently, store them in a central computer and make them retrievable in seconds from workstation computers. You will then be able to locate any document whenever it is needed.
Searching and retrieval are reported to be the most-frequently carried out document management operation. This is not surprising because it's information that is the key input needed for making business decisions and taking business actions. And search and retrieval provides just that; it provides relevant information.
Therein lies the significance of document management software for successful business operations.
How DMS Helps Sales Volumes
Sales volumes are achieved through organizing an effective marketing setup, timely deliveries, prompt attention to customer care requests and constant monitoring to identify fast and slow moving merchandise.
All these tasks are document-intensive. Correspondence and contracts are essential components that go into organizing a good marketing setup.
Correspondence, e-mails, invoices and shipping documents are integral to the day-to-day marketing operations. You must be able to retrieve any document immediately to ensure that good customer relations are maintained.
For example, a major distributor might call you and complain about the non-receipt of a shipment he had requested more than a month ago. If you can't immediately retrieve the details of the relevant shipment, you will fumble in attending to the complaint. And that could mean losing a highly effective distributor to a competitor.
A good document management system will capture all the relevant details, invoices, shipment documents (even images of paper documents) and store them under the distributor's name or ID. You can retrieve full details in a minute or so, and respond to the complaint with full information.
A DMS will also enable you to get in touch with the relevant carrier and find out what happened to the shipment. A DMS might even provide the tracking number so that you can find the status of the shipment yourself.
It's actions like these, and not accounting reports, that maintain good customer relations and contribute to higher sales volumes. Your document management software helps you take informed actions, as clearly illustrated above.
A regular stream of such informed actions can help achieve much higher volumes of sales than would be the case otherwise.
Conclusion
Good document management systems are essential for effective marketing operations. You should be able to retrieve relevant documents in a minute or less, on a consistent basis, to satisfy today's customers. This is what good document management software helps achieve. It captures all the documents, both paper and electronic, and makes them retrievable in seconds.
The result would be a great improvement in customer relations, and create much higher sales volumes.
