The hidden DSO guide

Your days sales outstanding is hiding something. Here’s how to find it.

Most distributors know their days sales outstanding. Almost none know their hidden DSO: the gap between the number in their ERP and the number they could hit if every manual break point in order-to-cash were gone. The guide shows you how to calculate yours and reduce DSO.

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Built from trends across ~$10B of AR managed on Suppli today.

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Trusted by leading finance teams in the physical economy

  • Dartmouth Building Supply
  • Fairbank
  • R.F. Fager Co.
  • Reichert Woodworks
  • Chaney Enterprises
  • Dunn Lumber
  • Hardman Lumber
  • Davis-Hawn Lumber
  • Capital Forest Products
  • Texas Wood Supply
  • Big Creek Lumber
  • Drywall Supply
  • Carolina Drywall Supply
  • OrePac Building Products
  • Colorado Drywall Supply
  • Cape Cod Lumber
  • MidSouth Building Supply
  • Carew
  • Golden State Lumber
  • Mid-City Supply Co.
  • RoMac Building Supply
  • Manatts
  • Builders Supply Co.
  • United Electric Supply
  • Schaedler Yesco
  • C&C Wholesale
  • B&B Concrete Co.
  • Detering
  • Industrial Supply
  • Mars Electric
  • Western Wholesale Supply
  • Eckart Supply
  • Harry Cooper Supply Company
  • Wholesale Plumbing Supply Co.
  • Granite City Electric Supply
  • Dakota
The problem

Your reported days sales outstanding is artificially high.

The number in your ERP reflects when customers pay. It doesn’t account for the days lost to a voicemail nobody returned, a check that sat in the mail for a week, a past-due reminder that never went out, or a dispute resolved over five emails.

Each one feels minor. Together they compound into multiple extra days of cash trapped in receivables: cash already earned, already owed, just not yet in your account. That gap is hidden DSO.

Agent Activity

Actions today

1,847

Collected

$412,905

Escalations

1

Midwest Building SupplyCompleteSent a payment reminder by text · #48201 · $8,420.00
Valley Electrical ContractorsCompleteRead a check and matched it to 3 invoices · $12,905.00
Summit IndustrialCompletePulled 3 trade references · recommends Net 30, $50,000
Northern Pipe & SteelEscalatedEscalated to Dana — freight disputed on $4,180.00
The math

What a single day of DSO is actually worth.

Take your annual revenue and divide it by 365. That’s your daily AR value — the cash that lands one day sooner every time DSO drops by a single day.

$200MAnnual revenue÷365Days in the year=$548KFreed for every day you take off DSO

Key takeaways

What the guide covers.

  1. 01

    Where hidden DSO comes from

    The specific manual break points in a physical-economy order-to-cash process: payment collection, cash application, collections outreach, dispute resolution. Each one quantified.

  2. 02

    How to run the math

    Daily AR value × estimated hidden DSO days. Most distributors find 15–20% of current DSO is recoverable.

  3. 03

    How to build the case

    The working-capital and interest math to take to leadership, plus what changes for the credit team: fewer days on the line of credit, capital freed for growth, time spent on judgment instead of manual entry.

About Suppli

$10B+ in physical economy AR under management.

Suppli is the AI-native AR platform for distributors and manufacturers. Collections intelligence trained on $10B+ in open AR. 20+ ERP integrations. AD Preferred Service Provider.

Finance teams are seeing the working-capital impact in month one.

R.F. Fager Co.
“Suppli lets me do the job I was hired to do. It's taken our credit process from reactive to proactive.”
Lisa FaketeCredit Manager
Big Creek Lumber
“Suppli has helped us so, so much. It's really unbelievable how the adoption has gone. Our customers love it.”
Mary AllenCFO

See what your hidden DSO is actually worth.

The guide walks through the math in 15 minutes. Most distributors find the number larger than they expected.