Heavy Industries

Manufacturing and heavy industries (e.g. industrial equipment, automotive suppliers, chemicals, construction materials) often operate with large order values, complex supply chains, and customers who themselves might be large corporations or projects. Cash flow is critical to fund operations and supply chain commitments. Typical payment terms are 30-60 days, but it’s common to see extended delays due to disputes, project delays, or client payment cycles. Many firms face high DSO (often 70-90 days) and significant working capital tied up in receivables.

Key Challenges:

• Long Payment Cycles & DSO: As noted by global studies, sectors like machinery and construction see some of the longest DSO averages (80+ days). This means manufacturers often wait months for cash, squeezing their ability to buy raw materials and invest in growth.
  
  
  

• Credit Risk in Supply Chain: Heavy industry suppliers might sell to customers in developing markets or to contractors with shaky finances. A single large default can be devastating. Yet, credit assessments are often done only at order time and not monitored continuously.
  
  
  

• Dispute Management: In these industries, payment delays frequently occur due to disputes (quality issues, delivery delays, documentation errors). Resolving these involves multiple departments and creates silos of information.
  
  
  

• High Operational Costs: Manual AR processes (calls, emails, escalations) are labor-intensive, and many manufacturing firms operate with lean finance teams.
  
  
  

How Vasul.ai Helps Heavy Industries:

• Credit-Infused Risk Monitoring: Vasul.ai continuously monitors the credit health of your customers post-sale. For instance, if a big project client’s credit rating deteriorates, you get an alert before the invoice comes due, allowing proactive action (like requesting partial payment, negotiating secure terms, or credit insurance).
  
  
  

• Prioritized Collections on Big Tickets: The platform will highlight high-value invoices and contracts that have outsized impact on cash. In manufacturing, 20% of invoices might comprise 80% of receivables by value – Vasul.ai ensures these are tightly managed.
  
  
  

• Dispute Workflow Integration: Our solution can log disputes and link them to AR items. E.g., if a $500K invoice is delayed due to a tooling defect claim, the system notes it and reminds the AR team to check with quality control. It can even integrate with ERP quality/SD modules to pull dispute status. This reduces the chance an invoice languishes unresolved.
  
  
  

• Case Study Snippet (Illustrative): “A mid-size automotive supplier ($300M rev) reduced DSO from 75 to 60 days in 6 months using Vasul.ai. They identified that 30% of late payments were from just 5 customers who had hidden credit issues. By focusing on those and adjusting terms (advance payments, payment plans), they freed $8M in cash.” (Note: use anonymized or composite data to sound credible.)