CPG & Food/Beverage Companies: Improve Chargeback Management & Maximize Revenue Today With Supply Chain VisibilityBy: Pasquale Gatti | June 28th, 2022
If you’re a CPG or food and beverage supplier, how do you stop chargebacks from continuously taking a bite out of your profits?
It’s become a near impossible task for many and it’s largely due to the fact that supply chain data management and EDI have become more accessible for your customers. As a result, they can issue fines and fees more easily as they rely on fully automated systems to do so.
If you aren’t using an equally automated and intuitive supply chain platform, you’re not competing on a level playing field.
Let’s take a closer look at some of the issues you’re facing as a CPG/F&B supplier, how they affect your bottom line, and how you can put a stop to them.
Adhering to customer delivery requirements help ensure their shelves are continuously stocked and their costs are controlled. However, non-compliance can result in significant money lost for them, and in turn, their willingness to hit you with costly fines and chargebacks.
It’s estimated that the average CPG company is paying over $1.5M every year in chargebacks. An astonishing amount. What can your organization do with that extra cash in its pocket?
The harsh reality is that on-time/in-full (OTIF) delivery is no longer a nice benchmark to strive for, it’s becoming a necessity if you want to continue to grow and achieve long-term success. Not only does on-time/in-full delivery eliminate penalties for non-compliant deliveries, such as Walmart’s fine of 3% of the cost of goods sold, but it’s also become a clear differentiator for CPG brands (Supply Chain Brain).
ASN Compliance Issues
Another area you’re likely facing challenges is ASN compliance and consistently upholding your end of the bargain. An honest mistake like sending your customer an inaccurate, incomplete, or late ASN can lead to costly fines and fees. However, when you can utilize a supply chain visibility platform that allows you to work together with your customers it can be a game changer. For example, receiving a simple notification on ASN errors so you can correct them before shipments arrive can save your company many thousands of dollars per year.
You need to be able to process information at the speed of business today–and that’s lightning fast. You may be struggling to verify chargeback totals with your internal teams and partners and that can slow down the entire process and make disputing them virtually impossible. Additionally, if you don’t have a way to quickly share chargeback data across your organization then you’re even further behind the eightball.
We’ve come across companies who are working from such a disadvantage (non-human readable data, no way to easily share it, requires IT to interpret) that it’s no wonder chargebacks have and will continue to take a huge chunk out of their bottom line.
Lack of a Single Source of Truth
If your entire team isn’t on the same page, that can make fighting chargebacks even more of an uphill battle than it already is. You see, B2B/EDI transactions that take place with your customers happen across many silos. As a result, different data and information exist within various business units; thereby increasing the chances of human error and making operational efficiency nearly impossible to achieve.
It’s critical that you leverage a platform that consolidates information that’s scattered throughout multiple systems and makes it accessible for all the users throughout your organization–in all departments–without requiring IT staff or resources.
How Syncrofy Can Help You Level the Playing Field
With Syncrofy, you have the power to eliminate the fees and chargebacks your customers hit you with (typically in the vicinity of up to 2% of your top line revenue), save valuable time, and improve productivity.
How? Syncrofy proactively alerts you BEFORE chargebacks occur based on the rules you set with your customers. And since it’s designed for non-technical users, you can get everyone in your organization involved to create a culture of compliance and remove the burden from your EDI and supply chain teams. Syncrofy also provides high-level reporting and analytics so you can track trends and identify areas for improvement.
Syncrofy allows you to interact more closely with your supply chain data, allowing you to make faster decisions and avoid costly errors related to your B2B transactions. It also helps you reduce the time-related expenditures of IT by enabling you to directly interact with your data to expedite corrective action, drive more accurate communication, and ultimately reduce chargebacks.
With the right platform and a little bit of guidance, you can improve your chargeback management and start protecting your profits—and we can help.
Are you ready to start taking back control of your supply chain? Download our free eBook, “CPG and F&B Supply Chains: How New Visibility Tools Make Them Run Faster, Cost Less” now and take the first step towards creating a visible and agile supply chain!
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