The role of a credit guide app in the supply chain
Goods and services are vital to our day-to-day activities, mostly fast-moving goods. They move through supply and demand at a speed that might be difficult to trace at times for small wholesalers and retailers. You can either make profit or loss within the supply chain as a manufacturers, wholesalers, marketers, and retailers, none is exempted.
On each level of the supply chain is the marketer or distributor whose job is to bring products to wholesalers, mini wholesalers, and retailers. These marketers and distributors are like the connectors of the supply chain; therefore, a lot can happen within this system without the “onsite” supervision of the Managers. And despite the efforts to ensure that distributors can make informed decisions when approaching wholesalers and retailers, most of the time these decisions are flawed because they are either made from instinct or relationship. Making business decisions through such system is not effective and most times money gets lost within this approach.
In today’s technologically inclined world, there are many ways to make a more informed decision, and Emerald Rating, a global credit rating company has created an easy-to-use credit guide application that works on android phones and laptops. This application will ensure that marketers and distributors can make a more informed decision while approaching their customers.
Credit facilities and credit rating innovation.
Credit facility plays an important role in the supply chain; most times, goods or products are distributed with the supply chain on open terms. Most of these decisions are carried out by marketers and distributors who know the buyers, (most wholesalers and retailers); they have created a relationship with these buyers and often supply them based on the information of demands and goodwill.
Having a credit guide app can help them improve their process of making such decisions and also prevent them from making wrong decisions and losing money while at it.
What is a credit guide app?
A credit guide app is a Robo adviser, which acts as a financial adviser for marketers and distributors with moderate to minimal human intervention. The work of the app is to provide digital financial advice based on mathematical rules and algorithms.
For instance; if a distributor or a marketer approaches a retailer or wholesaler that has become a regular customer of their business and the customer makes some product demand, e.g. (fast-moving goods like noodles), asking for 50 pack of noodles, with or without a pending debt to the distributor. In most cases, the distributor will only consider the debt owed to him or her, and some other common factors such as relationship over the months or years (this can be considered as goodwill), before deciding to supply the customer with a 50 pack of noodles.
The process of this decision-making cannot be considered as effective for financial growth and optimization; which is why money gets lost within this process.
In another case, if the distributor has the credit guide app, he will be able to ask financial related questions such as:
- Current asset
- Liabilities
- Equity
- Total asset
- Last period’s profit
The above questions will help the distributor or marketer make a more informed decision, the app will indicate if the risk of offering a 50 pack of noodles to that customer on open terms is low or high and also indicate the credit limit and payment term and tolerance that can be given to such customer.
The Emerald Rating credit guide app
The credit guide app is a “free” user-friendly mobile phone tool, created by a Switzerland-based company Emerald Rating. This credit guide app aims to help businesses, distributors, and finance personnel make a more informed financial decision. It is not hard to use, and it’s self-explanatory for everyone who deals in money and sales. The company is founded by Danny Kaltenborn, the author of the book ‘Credit Risk Management – Code of Best Practice’.
The app is created to simplify financial decision-making while mitigating credit risk, and maximizing profits. Emerald Rating also has other robotics process automations (RPA) that can help solve more complex financial problems and that can ensure a better credit rating for all companies.
Other credit rating products by Emerald rating:
- Trade Finance Applications
- Customer risk evaluation
- Supplier risk evaluation
- Going concern valuation
- Asset management application
- Share price evaluation
How can you get the Credit Guide App?
You can download the free credit guide app here, or go to www.emeraldrating.com, you can also download the credit guide excel app for your laptop, smartphone or tablet here. To use this excel app, you need to first download the latest Microsoft Excel from App Store, and then install the credit guide excel app on your laptop and enjoy the app for free.