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Chargeback Analysis and Collection
The single biggest avoidable drain on a company's
profitability are deductions by its customers as a result of compliance
violations and a slow response to resolving chargebacks. Hundreds of millions
of dollars get deducted by retailers at various stages from the payables to
their suppliers. Retailers have made deductions a profit center with large sums
of money that never get cleared and eventually taken by the retailer. Small to
medium sized manufacturers, importers and wholesalers run on tight budgets. As
margins are squeezed on selling prices, compromises are made on operations to
keep down overheads. The chargeback department is one of the departments which
is often neglected. Most often clerical level staff is used to perform this
work and in most instances the staff is hard pressed to keep up with the volume
of the work thus creating a backlog. The backlog as it builds results in
delayed resolution to deductions most often making it uncollectible.
Chargebacks in most situations require a lot of effort to put together before
these can be analyzed.
IGO understands the various issues that affect the
process and has developed solutions with Factors to make the execution of the
procedures as transparent and seamless as possible. The following is a summary
of the steps performed by IGO on a regular basis:
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Web based
application directly imports chargeback data for a client directly from the
Factor onto the IGO server.
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Corresponding scanned documents are
received from the factor and the client electronically which are attached to
each deduction.
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Data is analyzed by the IGO professionals
who determine the completeness of the transaction. The necessary research in
initiated and request for other documentation is made either to freight
companies or from our client.
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IGO application shows chargeback status at
each stage and is available 24/7 on the Internet.
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Client can run multiple custom reports for
Management Information and notify IGO of any additional information on line.
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Month-end summary analysis report per your
G/L codes
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