Distributor of Flooring Products - Case Study Example

Mohawk Industries, Inc. is the leading producer and distributor of carpet, rugs, stone, vinyl, ceramic tile, wood, and laminate flooring, and all of the company's products are marketed under the most popular brands in this industry. Since the company has a lot of customers, this agreement is expected to enhance the effectiveness of the company's relations with them, i.e. facilitate the payment processes, as well as receiving and approving invoices and utilizing credits and discounts. Moreover, there will no longer be a need to print and mail checks.

The company's officials also hope the Harbor Payments system will boost the productiveness of their relations with their dealers, helping the latter be more profitable and efficient. It should not be overlooked, however, that Harbor Payments will obviously benefit from signing the agreement with Mohawk Industries, Inc., too.Mohawk Industries, Inc.'s decision to use the system offered by Harbor Payments will enable them to substitute the expensive and time-consuming process of printing and mailing invoices for delivering them through electronic channels which save both time and money; this way the invoices will be delivered to the customers on time, and it will be much easier for the customers to deal with them.

Mohawk is also going to increase the number of customers who pay via electronic channels by offering them early bird payment discounts. Not only will it be beneficial for the customers, but for the company as well, as during the years of effective work with a number of companies it has been proven by Harbor Payments than the practice of electronic invoice delivery has excellent results as far as the payment ratio is concerned, ensuring as much as 90% of payments.Invoice Harbor system allows to submit invoices, resolve disputes, and process payments electronically; and since the system is multi-channeled, supports various types of payment, has a unique data hierarchy model, and automatically distributes individual invoices, it is really able to boost the effectiveness of electronic billing, invoicing, and payments.

The Invoice Harbor system also supports many card types, e.g. ACH and wire.All in all, the outcome of using Invoice Harbor for Mohawk is expected to be very beneficial: it will "optimize working capital, streamline business processes, reduce payment processing costs, improve decision-making with real-time information, and move toward a paperless enterprise". Normally, when a company buys something from another company, it gets a paper invoice, often it happens even when purchasing online, and to process this invoice and make a payment several days or even weeks may be required.

Harbor Payments provides Mohawk with an excellent opportunity to issue invoices electronically, and consequently, Mohawk's customers are enabled to pay according to these invoices electronically as well, which reduces processing cost for both parties and allows to save time.