Our Impact

Success Stories

Company: $1+ billion – Interactive Software

Business IssueActions TakenResults

Business Issue:

  • Company experienced on-going deductions from key customer due to unresolved EDI and labeling issues
  • Another key customer deducted over 6,000 individual claims which were felt to be invalid, but needed to be researched
  • Deduction reporting from company’s financial software was limited and did not provide management with visibility to the information necessary to understand recurring issues, or evaluate deduction performance.

Actions Taken:

  • Created and managed cross-functional team to resolve compliance issues.
  • Worked together with trading partners to create & execute recovery strategies / settlements.
  • Redesigned reason code structure and implemented Business Intelligence software to provide robust, user-friendly reporting and “data mining” capabilities without manual reentry.

Results:

  • Collaboration between company and trading partners led to over $1.5 million in settlements as well as improved customer relationships
  • The open deduction balance > 90 days was reduced by 80%.
  • Improved visibility to deduction information – weekly and monthly Flash Reports & Scorecards prepared for senior management.

Company: $1+ billion – Educational Toys

Business IssueActions TakenResults

Business Issue:

  • Company had experienced large chargebacks from key customers due to shipping problems at a new warehouse
  • Certain open chargeback balances were quite aged, due to difficulties in resolution and cross-departmental cooperation across multiple departments
  • Chargeback reporting from company’s financial software was limited and did not provide management with visibility to the information necessary to understand recurring issues, or evaluate deduction performance.

Actions Taken:

  • Redesigned reason code structure and implemented Business Intelligence software to provide robust, user-friendly reporting and “data mining” capabilities without manual reentry
  • Created and executed resolution / recovery strategies for key customers, through cross-departmental involvement.
  • Created a Claims Department to focus on chargeback prevention / resolution
  • Increased accountability by developing and documenting task lists.

Results:

  • Focused efforts by cross-departmental team led to the recovery of over $2 million from key customers within the first 8 months
  • The open chargeback balance was reduced by 80%.
  • Improved visibility to chargeback information – weekly and monthly Flash Reports prepared for senior management.
  • Improved relationship with key customers due to open dialogue and joint “clean up” efforts.

Company: $100+ million – Home Furnishings

Business IssueActions TakenResults

Business Issue:

  • Insufficient deduction reporting resulting in poor senior management visibility to recurring deduction issues.
  • Limited accountability and cross-functional cooperation leading to minimal prevention efforts and ineffective recovery strategies.

Actions Taken:

  • Developed improved deduction reporting using company-owned reporting tools. Focused on top / recurring deduction issues & customers as well as tracking performance over time.
  • Created cross-functional steering committee to focus / prioritize improvement efforts and foster ownership and accountability.
  • Developed recovery and prevention strategies for key customers, including preparation of settlement meeting packages, negotiation training and identification / resolution of key issues.

Results:

  • Initial settlement meetings with key customers resulted in recovery in excess of 100% of disputed deductions (due to partial recovery of valid deductions where “fixes” can be shown).
  • Implemented revised allowance policies which can reduce deductions by >$500K.
  • Reduced the time it took to process and research deductions by 75%
  • Implemented process changes to “fix” recurring deduction issues which had resulted in >$250K of chargebacks during previous 12 months.

Company: $600 million – Apparel

Business IssueActions TakenResults

Business Issue:

  • Company had ineffective processes & procedures in place to resolve and manage deductions. It took up to 1 month after a deduction was received for reason code to be identified and entered into the system
  • Deduction reporting was limited and did not provide management with visibility to the information necessary to understand recurring issues, or evaluate deduction performance. In the COO’s own words: “I don’t sleep at night because I don’t know what kinds of deductions are out there.”

Actions Taken:

  • Developed detailed policies and procedures by reason code for collectors to follow when researching deductions. Provided improved policies and training on identifying and classifying deductions.
  • Implemented Business Intelligence software to provide robust, user-friendlyreporting and “data mining” capabilities without manual reentry

Results:

  • Focused efforts by senior management using improved reporting capabilities led to the recovery of over $1million within first year
  • Reduced the time it took to identify unknown deductions and get them properly coded in the system by 50 – 95% (15 – 30 days)
  • Revised policies and procedures reduced collector workload 30-40% by eliminating non-value added activities.
  • Visibility to information vastly improved. In the COO’s own words: “I don’t sleep at night because I know exactly what kind of deductions are out there.”

Company: $125 million – Apparel

Business IssueActions TakenResults

Business Issue:

  • Company had over $3.3 million in open deductions
  • Limited visibility to issues – 66% of open deductions were coded as “unidentified”
  • Minimal reporting capabilities to track and manage deductions

Actions Taken:

  • Redesigned and remapped reason codes for deduction information electronically received from factor
  • Implemented Business Intelligence software to provide robust, user-friendlyreporting and “data mining” capabilities without manual reentry
  • Facilitated cross-functional group review open deductions by reason and develop specific recovery and prevention strategies.
  • Developed collector procedures for reviewing and analyzing new deductions.

Results:

  • Using improved reporting information, over $100K in delivery related deductions was recovered within the first 3 months of implementing improvements
  • Root cause analysis resulted in process improvements which prevented close to an estimated $50K in ASN deductions annually.
  • “Unidentified” deductions were reduced to 3% of open deductions

Company: $150 million – Consumer Electronics

Business IssueActions TakenResults

Business Issue:

Large volume of chargebacks > 120 days. Initial review identified the following:

  • Chargeback reporting was manually prepared and too limited to allow for adequate tracking and root cause analysis – losing $ on potential recovery & prevention
  • Cycle times to process physical returns were often 90+ days
  • Only 1/3 of allowances and “program” discounts were processed at cash application requiring non value-added follow up for approval

Actions Taken:

  • Implemented Business Intelligence software to provide robust, user-friendlyreporting and “data mining” capabilities without manual reentry
  • Facilitated cross-functional returns team to identify & implement process improvements including RMA pricing and customer “keys” to facilitate matching
  • Identified opportunities to increase “same-day” clearing of allowances and programs

Results:

  • Open chargebacks > 120 days were reduced by 60% within the first 3 months of implementing improved reporting, due to visibility of information and focused recovery efforts. Ability to easily create standard and ad hoc reports.
  • Reduced cycle time to process physical returns for key customers to < 30 days. Allowed faster follow up / recovery of pricing discrepancies.
  • “Same-day” clearing of allowances and program deductions increased to 85%. Invalid program deductions quickly identified and resolved. “Cleaner” A/R