Every year, companies spend countless hours managing deduction disputes and paying back millions they shouldn’t. PRGX’s Deduction Management simplifies the process for large companies and their suppliers, saving money and improving outcomes.
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.
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.
Millions in needless repayments are made in an effort to minimize internal costs and maintain relationships.
Suppliers receive payments with deductions but no backup, resulting in dispute cases, many of which are preventable.
Lack of visibility and access to all supporting documents and multiple data sources unnecessarily complicate the process.
Significant staff and management resources are required on both sides to support resolutions.
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.