When supplying to multiple retailers, suppliers face numerous challenges. These include managing inventory, fulfilling purchase orders (POs) from each retailer on time, and ensuring compliance with each retailer's vendor regulations. When suppliers fail to meet these regulations, retailers issue vendor chargebacks.
In an industry where profit margins are slim, it is essential for suppliers to dispute every invalid chargeback. This task is easier said than done, especially when dealing with thousands of chargebacks from different retailers.
BestBuy is one such important retailer spread across the United States. There are numerous challenges when it comes to manually managing BestBuy deductions. These include:
Complex Retailer Portal
Limited options for outsourcing
Time-consuming and tedious process
In this blog, we will discuss in detail the problems that suppliers face when managing BestBuy deductions. We will explore whether outsourcing the deduction management process is ideal for suppliers and shed light on automation software.
Before one can start filing claims, one has to find the invoices for which deductions are issued. When you are dealing with numerous retailers this task becomes a real challenge. BestBuy is no exception; in fact, its portal is more complex than most retailer portals.
Best Buy will tag invoices with deductions based on the deduction type. For example, if a chargeback occurs due to a shortage, it will be tagged as DMQ - Debit Memo Quantity. Similarly, for situations where there are incorrect labels or missing ASNs, they will be tagged differently.
Burdened by thousands of deductions from various retailers with tight deadlines, the Account Receivables (AR) departments of most suppliers choose to outsource to manage deductions. They face several challenges in doing so, they are:
Difficult onboarding process: Most solutions present in the market take really long to onboard and start disputing for you, usually months. So now employees not only have to manage deductions but also have to coordinate with the outsourcing company, increasing their workload.
Inconsistent data transfer: Even if the onboarding is completed, regularly transferring data to the outsourcing company is another challenge. If the data from the EDI or ERP system doesn't get transferred not only do deductions pile up but one might even miss the deadline for disputing leading to heavy revenue loss.
Trade Partner not supported: This is the most common challenge faced by suppliers when they look to outsource chargeback management. Most solutions available in the market are retailer specific that is, they only support a few large retailers like Amazon and Walmart. So if you are working with other smaller retailers like BestBuy or Walgreens.
Discover how iNymbus accelerates the onboarding process, completing it within just a few weeks for some clients by prioritizing efficiency and customer service.
iNymbus was designed to address the challenges faced by suppliers of all sizes and industries. Our clientele supports that statement, as we serve clients with billion-dollar revenues working with 20+ trade partners, alongside clients working with just 2 or fewer smaller trade partners, perhaps making it the best deduction management software in the market.
Our deduction management software uses Robotic Process Automation (RPA) technology to automate this process of disputing deductions from end to end. By reducing manual effort and embracing automation our clients are able to achieve remarkable results.
Reduce Cost by up to 80%- By automating deduction management our software is able to process more number of deductions per day. This helps drastically reduce the processing cost.
Up to 30X Faster Processing- It takes about 15-20 minutes to manually dispute a deduction but with iNymbus you can bring down that time to mere few minutes. From writing descriptions to uploading required documents, iNymbus can handle it all.
Centralized Deduction Management- As mentioned earlier most solutions present in the market support only the big retailers like Amazon and Walmart. Leaving the suppliers hanging when they receive deductions from other smaller retailers like BestBuy or Kohl’s. iNymbus stands out by supporting over 25 retailers and offering the flexibility to add new retailers based on customer requests.
Check out this case study of how a giant supplier dealing with over 20 retailers tackled deductions with iNymbus. With iNymbus, the client was able to manage deductions from large retailers like Amazon and Walmart and automate disputes for smaller retailers like Lowes on Lowes Vendor Portal.