Fines & Chargebacks Slowing Down Your Supply Chain? Follow These 3 StepsBy: Pasquale Gatti | September 25th, 2020
Did you know that 2% of manufacturers’ and distributors’ top line revenue goes to pay supply chain fines and chargebacks from retailers? It’s a stunning reality that begins with a lack of visibility into the supply chain, flaws in the transaction process, and no real way to identify and fix the root cause of late or inaccurate shipments.
Fortunately, there are some simple steps you can take to start reducing the amount of chargebacks you see every year and create a more efficient supply chain.
1. Keep communication open with trading partners
Silence is deadly. It’s important to keep a constant line of communication open with both your partners and internal teams. You should invite your top partners to work with you to address the causes for any transaction discrepancies and make sure you’re conveying all of your issues thoroughly. An easy way to work hand-in-hand with your partner is to make them aware of your document processing schedule. This enables them to work with you to documents processed as quickly as possible, allowing purchase order acknowledgments and advance ship notices to be sent out in a timely fashion.
2. Document & assign accountability
Make it a team effort! Internally, ensure you’re documenting shipments in a detailed way and leaving a paper trail of comments on each document throughout the order process. You should also designate appropriate team members (get everyone involved) to take ownership and be responsible for specific action items. Having documentation on hand will help you dispute chargebacks with your trading partner if you determine one was sent in error.
3. Make an investment in technology
Get with the times! Investing in the right technology platform is the backbone in your fight against chargebacks. First, if you have the right tool you’ll be able to achieve visibility into your supply chain, monitor shipments, and prevent price discrepancies. It will also allow you to be proactive and see exactly where the issues are coming from and work towards solving them. Leveraging technology will also help you get everyone in your organization on the same page and create a more data-driven culture around your supply chain.
Like what you just read, but not sure where to begin? There’s a tool that can help you carry out the steps above plus so much more. It’s called Syncrofy for Supply Chain (SSC).
SSC is a real-time supply chain visibility software that helps you prevent chargebacks before they happen and makes it easier for your organization to implement a chargeback program to monitor obligations, prioritize initiatives, and carry out an improvement plan.
Want to learn more? Click here to get started.
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