23 replies to this topic

[TRIP]

Is our (distributors)credit info being accuarately tracked on UPIC? Since no suppliers seem to ask for your UPIC code I wondered if that tracking mechanism works. If UPIC wants to offer the same type of credit service as asi does the upic identifiers need to be used.

Conversely, are there any suppliers looking at upic for credit info on distributors?

[3Koi Maui]

I picked NO because at most only 1 or 2 suppliers have reported to UPIC. That's virtually nothing in my book.

[Allan]

I, too, selected "no" because I was informed that the ASI credit is used by the supplier that I was working with. I shoudl get a copy of the files, though, as the supplier put me on cash terms because I order small quantities from many suppliers.

I order what my customers want. But I am punished for it, I guess. Cash up front is ok but when neither of the two parties have ever danced before, why does the supplier have all the trump cards? I sure would like some recourse if the supplier fails to deliver.

[indietermined]

I picked "yes" because 7 suppliers have submitted a rating to my UPIC credit history within the past year. Not sure is that is considered "many" or not but I based it on the fact that my supplier "universe" is quite small (10-15 suppliers used on a regular basis) so I figured that is about half, not a bad percentage reporting correct?

Actually I am confused how suppliers report credit ratings. Can someone enlighten me? Does UPIC/ASI contact suppliers to get data on payment history? Or is automated? Would suppliers need to know my UPIC or ASI number to submit credit rating or just name? :confused:

[TRIP]

That was my question too, no suppliers are reporting info on me to UPIC so I wanted to know how it worked.

[Chris Miller]

I've had about 6 or so report in the last year. Not as many as I anticipated, but it's a start. I do put my UPIC on everything - I believe in this system and hope it goes somewhere.

[KelseyPromo]

Chris Miller said:

I've had about 6 or so report in the last year. Not as many as I anticipated, but it's a start. I do put my UPIC on everything - I believe in this system and hope it goes somewhere.

Chris

How about having the UPIC show, along with our names and company, with every post on the left here.

[indietermined]

So then if I wanted to increase the possibility of suppliers reporting to UPIC about my credit info I should promote my UPIC number on all my communication to suppliers? Will do if it helps...but really would know how it works.... Seems like the ASI system would be automated since it promotes itself as the most accurate and reliable source of credit info....then again suppliers won't be able to report on or find me cause I don't subscibe to ASI... Seems like UPIC would need to proactively reach out to suppliers to offer their credit reporting services... Does is sound like this is happening?

[Chris Miller]

indietermined said:

So then if I wanted to increase the possibility of suppliers reporting to UPIC about my credit info I should promote my UPIC number on all my communication to suppliers? Will do if it helps...but really would know how it works.... Seems like the ASI system would be automated since it promotes itself as the most accurate and reliable source of credit info....then again suppliers won't be able to report on or find me cause I don't subscibe to ASI... Seems like UPIC would need to proactively reach out to suppliers to offer their credit reporting services... Does is sound like this is happening?

I think simply giving your UPIC when you signup for an account, and nothing else would be a big help. They do need to tell more suppliers about it though. It's catching on, but taking a lot longer than some expected for whatever reason.

[TRIP]

I'd like to hear what the suppliers on DT think about it and if they are using it. Seems to me they are doing the driving here.

[indietermined]

I agree, I notice a lot of account applications ask for other association numbers, I cross them out and write UPIC in.... Plus my UPIC name is on the top of my PO's.... And, of couse when questioned, say we are certified with UPIC.
Taking a lot longer? I see a UPIC Credit Services webinar is coming soon...Anyone know when was the UPIC system was established?

Chris Miller said:

I think simply giving your UPIC when you signup for an account, and nothing else would be a big help. They do need to tell more suppliers about it though. It's catching on, but taking a lot longer than some expected for whatever reason.

[sdmillar]

This supplier's point of view...

The UPIC credit program is not something that many suppliers have gotten on board with. Ther eason so many are aprehensive is that ASI's Credit Connect system is well established and has worked very well for suppliers. It is a good (not perfect) tool for suppliers to deterrmine credit worthiness of many distributors. I know many might say, "If suppliers started providing their credit histories to the UPI system it would be as good or better than ASI's." You are correct. The problem is that for many suppliers it is a lot of work compiling this data and sending it to these credit bureaus and if when you go there as a supplier to check he credit of a distributor you get next to no info on them, how long can you expect them to keep providing their data.

I think if PPAI can get UPIC to be the more recognized industry identifier than the ASI number, you will start to see suppliers give the UPIC credit program a try. PPAI should get the UPIC established and then publicize to suppliers that they are asking for a 6 month commitment from the suppliers to input the credit data and use the service and if it flys, we suppliers will come back to it every day. If that does not get it off the gound, then I am afraid it was not meant to be.

Distributors that are not listed with ASI is that it does make it more difficult to do a quality credit check. Filling out a credit app for a new account is cumbersome for the distributor and the supplier. Trying to get credit references to return calls and faxes requesting information today is darn near useless.

PPAI needs to come up with a financial incentive in the beginning for suppliers to spend the time and money to jump start this credit program or it might not happen. Maybe a rebate of X percent of your supplier dues if you provide credit data for the first 6 months of the program to make sure that data is there for searching suppliers to make credit decisions on. We pay a lot of money to PPAI in dues and I wish I could point to a few more of the benefits we get from those dollars. I think the rebate idea would be one that I could point to as a necessary strategy to get that credit bureau populated with data.

Many suppliers believe they have the majority of their credit questions handled just fine now.

Sorry this was so verbse, but someone had to say it and I am glad that suppliers were asked to chime in. Any other suppliers concur or disagree?

TRIP said:

I'd like to hear what the suppliers on DT think about it and if they are using it. Seems to me they are doing the driving here.

[jimknecht]

The simple truth of the matter is that UPIC credit reports have little or no value to me. Yes, I looked into their system....I believe they call the sales pitches webinars or something similar. The package sounds nice but the problem is that next to no suppliers are submitting distributor activity. For example, if I checked credit on a medium sized distributor UPIC might show only 3-4 reports while ASI might show 100. That makes it a no brainer...at least for the time being.

[Allan]

Does it cost for you to submit to either ASI or UPIC? If there is no additional cost, do you submit to both? Some distributors are not listed with ASI, so they have no access to that system if there is a error or other issue.

jimknecht said:

The simple truth of the matter is that UPIC credit reports have little or no value to me. Yes, I looked into their system....I believe they call the sales pitches webinars or something similar. The package sounds nice but the problem is that next to no suppliers are submitting distributor activity. For example, if I checked credit on a medium sized distributor UPIC might show only 3-4 reports while ASI might show 100. That makes it a no brainer...at least for the time being.

[TRIP]

What do suppliers do when the distributor is not ASI?

It looks to me like there may be fewer distributors signing/renewing with ASI so what next?

Since I am not ASI, am I to be penalized by suppliers because they cannot get credit info on me?

Is that the compelling reason to join ASI, just to get your number and allow suppliers credit departments to go the easy route?

There must be another way other than having to pay hundreds of dollars to join ASI in order to establish credit within the industry.

[Chris Miller]

I have only found one supplier (wink wink) that uses ASI credit services exclusively. I have been able to get credit with all the others by giving my UPIC, and / or providing references.

[jimknecht]

Allan said:

Does it cost for you to submit to either ASI or UPIC? If there is no additional cost, do you submit to both? Some distributors are not listed with ASI, so they have no access to that system if there is a error or other issue.

Yep, it costs to use either system. The way they work is that you pay to receive the credit info & a stipulation of the deal is that you must report back your credit experiences. With ASI we send a report showing every distributor that is past due, then every 6 months we send a complete report on each distributor we have dealt with.

Keep in mind every supplier is different...we don't all have degrees from Supplier Univ. We are the one company Chris (wink wink) works with that uses ASI exclusively. When UPIC "grows up" I would love to offer that system also. Since the vast majority of our jobs ship within 3 days (Chris, if I remember right you needed 24 hour service), credit aps don't work for us...even if I wanted to use the 5 companies you listed. Now if I was an importer & had weeks to deliver, I would probably change our procedures.

Here is my 2 cents worth...credit is not a RIGHT, it is a privilege. Terms are set up to simpify a business transaction...not give you working capital. If you are running your business where you operate off of supplier's money (terms), you are in trouble. We have been doing this for 44 years, have outstanding credit (pay EVERY bill the week it comes in) & yet I still have to prepay with certain vendors. I don't throw a fit. If they are the best, then I live with it. I still can't figure out why you would even want my terms...all you get is 30 days (hopefully) of free money. If you use your credit card, you get the same 30 days, plus you get to fly for free. The only logical reason I can come up with is that you know the credit card companies are going to stick you with a severe penalty if you don't pay within terms...most suppliers don't. That implies you want more than 30 days of credit...without paying a penalty.

Sorry if this offends someone, but I will always give you my honest opinion...even if it means you will never do business with us.

[sdmillar]

Chris,

I don't know any supplier that would turn away the possibility of credit to a distributor that was not listed with ASI. The reality is as Jim Knecht said, the information in the UPIC Credit system is just not there at this time. I can run your credit )If you are listed with ASI) and come back with dozens of reporting suppliers data that you have done business with in a matter of seconds. If you are not listed with ASI, I can check UPIC and if very little data is there to go on, I need to have a credit app filled out. What I recommend to distributors is to come up with a CREDIT INFORMATION SHEET. This should include all the of requested information that most credit apps have on it, it just saves you a ton of time. One better, list references that you have check with the credit manager on what they do with faxed credit requests from other suppliers. Some suppliers do not take the time to fill out these credit requests they get from other suppliers.

Here is what I am going to do... Since it has been a while since our company has looked into the status of where the UPIC particpation of suppliers is, I am going to do some research myself. I will see how automated their reporting procedure has gotten and what their current program costs are for doing searches is currently. I hope that in all regards it has gotten stronger, as like someone said earlier, if many distributors are not renewing their ASI number, this will be an issue for suppliers and these distributors on keeping updated credit info in the pipeline.

As suppliers, all we want to know from information like this is that we are not stepping on to a land mine when we extend credit to someone. We want to know that they have some history out there of doing business responsibly, as the vast majority do. The challenge is to make sure you avoid the minority of those that don't.

Will report back after I have done some more current research on this.

Chris Miller said:

I have only found one supplier (wink wink) that uses ASI credit services exclusively. I have been able to get credit with all the others by giving my UPIC, and / or providing references.