Part of running a manufacturing company involves knowing how customer deductions work. Here are the benefits of automated deductions processing for your organization.
Manufacturing CEOs are among the many business leaders predicting continued volatility in 2022. To stay competitive, you need every possible advantage.
Have you examined your customer deductions workflow lately? Deductions aren't just a necessary cost of doing business. According to Attain Consulting, 90% of customer deductions are still invalid! Automated deductions processing can help your manufacturing company save time and cut processing costs. You can increase revenue and improve customer satisfaction.
Learn more about deductions processing and how an automated solution can benefit your business.
Types of Deductions
Deductions are part of your accounts receivable management. Deductions occur when a customer disputes or doesn't pay part of what they owe you. The two main types of deductions are trade deductions and non-trade deductions. iNymbus focuses on three deduction categories: Shortage, Compliance, and Pricing.
The Cause of Customer Deductions
Non-trade deductions are deductions that create a dispute. Customers may take deductions from an invoice for reasons including:
- Incorrect charges
- Improper Invoicing or Delivery Notification
- Packaging errors
- Damaged goods
- Incorrect shipping methods
If your company agrees with the customer, you have to deduct the amount from the bill or invoice and reissue it. If you disagree, you have to dispute the claim, normally through a portal.
You have to prove that a deduction isn't valid when disputing a deduction. Your employees have to research, dispute, and clear the claim.
Priorities in Deductions Processing for Manufacturers
Effective deductions processing is critical for your manufacturing business. It's important for your bottom line and customer satisfaction. You need your deduction management to accurately resolve disputes as soon as possible.
Disputing customer deductions should happen as soon as possible. The more time your employees spend researching and validating a dispute, the less time they have for other tasks. The revenue is in limbo as it awaits a decision.
Customers often become impatient if resolving their claim takes a long time. Some large retailers only accept claims disputes for a certain amount of time. If you miss the deadline, you lose the revenue. Consistently disputing claims with automation is a step toward improving your recovery rates.
Improve Customer Service
Resolving claims disputes quickly and accurately is good customer service. Customers want to feel like you're prioritizing their claims. An efficient process and clear communication help to improve customer satisfaction.
Reduce Revenue Leakage
An inefficient deduction management process means you don't collect some of the revenue your customers owe you. Even deductions that seem small individually will add up. A large volume of uncollected claims can affect your cash flow, working capital, and profitability.
Managing your deductions effectively helps you maximize your collected revenue. The automation solution you choose should process aging deductions, helping maximize your investment.
Reduce Future Deductions
Deductions give you information about your customers. Customers give you claim reasons and documentation for most deductions. You can analyze whether the deduction was in the budget, from a problem with compliance, or unauthorized.
This analysis helps you assess your internal operations. You can see where process changes can improve your results. Now that your teams are freed from the constant inflow of new deductions, you can focus on more impactful areas of the business.
Benefits of Automating Your Deductions Processing
Manually processing deductions can be complicated and time-consuming. After your business reaches a certain volume of deductions per month, you struggle to meet your goals.
To try to handle an increasing volume of deductions manually, you could hire more people. This increases your costs. It's only scalable up to a point.
You could outsource your deductions processing to a third-party company. This transfers the problem to someone else, but it doesn't address the real problem.
Deduction automation helps streamline the process. Automated solutions use the power of robotic process automation (RPA) with machine learning and artificial intelligence (AI).
You can process claims more efficiently. You get data to help you reduce the number of incoming claims while directly maintaining control of processes and business rules.
Automated deduction management significantly reduces the amount of time it takes to research and resolve deductions. iNymbus automatically extracts backup documents from carriers, EDI, and other sources. Eliminate the need to work out of multiple windows and tools by allowing bots to handle the research step.
Simplify the Process
Deduction automation simplifies your deduction management. You don't need to manually create tasks for employees to research and validate claims. An automation solution can validate invoice amounts and create a clear audit trail. All customer deduction information flowing through iNymbus is displayed on a single dashboard that we call DeductionsXchange.
Reduce Costs and Improve Revenue
Automated deductions processing reduces the number of employees you need to work on deductions. Staff across a range of departments have more time to devote to core tasks and value-added activities.
An automated solution helps you recover more revenue, especially with the ability to redispute claims. You are able to maximize the amount you recover per dispute and reduce the number of write-offs.
Get Better Insight into Deductions Causes
An RPA platform with AI automatically identifies the cause of deductions and disputes. It collects data from many sources, including emails, payments, and remittances. It uses rule-based logic with these comprehensive datasets to identify and categorize the cause of a deduction.
Deductions Processing with iNymbus
Deduction automation from iNymbus can eliminate manual retailer and shipper claims for manufacturers. A cloud solution with RPA and AI streamlines your process by:
- Automatically reading retailer portals
- Gathering and preparing the necessary documentation
- Packaging claims
- Uploading claims packets to retailer portals
Fully onboarding an iNymbus solution usually takes 6-8 weeks. Your IT department only needs to provide minimal support, leaving them free to focus on your other business priorities. You'll quickly start seeing the benefits of automatic deductions processing.
You can process claims 30x faster at a fraction of the cost of traditional manual processing. You'll win 80% of claims on the first pass. The iNymbus platform has redispute capability to automate follow-up for further recovery.
Start Improving Your Deductions Processing
Automated deductions processing from iNymbus brings significant benefits to your manufacturing company. You can process claims faster, reduce costs, and minimize future deductions.
We start with a detailed assessment of your business processes. Then we can determine the best automation solutions and robot integration points.
Contact us today for a consultation or demo and start improving your deductions processing.