THE EXTRAORDINARY COST OF DEDUCTION DISPUTES

The inefficient and inaccurate process of resolving deduction disputes wasted in millions of unnecessary dollars spent every year.

We surveyed Fortune 1000 retailers and uncovered some alarming facts:

  • High Staffing Costs: Up to 30% of customer deductions are disputed by suppliers and can total tens of thousands of queries. Manual processes, piecemeal workflow and disparate systems require companies to assign significant personnel to resolve deduction disputes and approve reversals — an effort that provides no value back to the organization.
  • Lack of Accuracy: Manual processes are error-prone, resulting in a low degree of confidence that disputes are resolved correctly. Companies routinely spend millions of dollars in unnecessary deduction repayments
  • Supplier Relationship Impacts: With lengthy response times and low confidence in outcomes, service levels can take a real hit, degrading the supplier/customer relationship.
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MORE THAN DOLLARS & CENTS

Large Companies and their suppliers go to great lengths to minimize the impact of deduction disputes. It not only affects their bottom line, but also can severely impact their ability to operate on a day-to-day basis.

Profit Losses

Millions in needless repayments are made in an effort to minimize internal costs and maintain relationships.

Broken Process

Suppliers receive payments with deductions but no backup, resulting in dispute cases, many of which 
are preventable.

Disparate Systems

Lack of visibility and access to all supporting documents and multiple data sources unnecessarily complicate the process.

Resource Drain

Significant staff and management resources are required on both sides to support resolutions.

Vendor Abrasion

Frequent disputes can lead to supply chain interruptions, lost negotiation leverage, credit holds and more.

Limited Cash Flow

With payment delays, suppliers may struggle to meet daily cash requirements.

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A SINGLE SOLUTION FOR CLIENTS & SUPPLIERS

PRGX Deduction Management streamlines and simplifies the deduction dispute process to save time, resources and money for clients and suppliers.

  • Client Portal
  • Supplier Portal

Centralizes inquiries and disputes into a single tool with custom workflow routing, streamlining the process and providing greater visibility by:

  • Reducing avoidable repayments across many deduction categories
  • Reducing incoming supplier disputes by requiring supplier self service
  • Reducing operational costs of dispute resolutions
  • Reducing manager attention to resolutions
  • Improving supplier relationships

Consolidates all required documentation to make workflow more efficient and simplify communication with clients:

  • Reducing operational costs of dispute resolutions
  • Allowing for self service
  • Reducing manager attention to resolutions
  • Providing real-time visibility into the Client’s dispute resolution process
  • Reducing strain on client relationships

TURN TO THE INDUSTRY LEADER

For more than 40 years, PRGX has been helping the world’s largest retailers improve their financial performance and manage their risk.

Serve 75% of 
the top 20 global retailers

Deliver more than 
$1 billion in cash flow improvements

Analyze more 
than $2 trillion 
in spend

Create actionable insights from over over 
6.2 petabytes of data

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An Expert Opinion on Simplifying Deduction Management

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