Deduction Management to Put You in Control
The full range of Smyyth Reconciliation, Accounts Receivable, and Profit Recovery solutions are custom-tailored for consumer goods companies. Our decades of service and experience in the field have demonstrated that tremendous profits are often lost as a result of inadequate software or skills to drive the auditing, resolution, and recovery of excessive customer deductions. Even in most well-managed companies, this continuous profit leakage is frequently budgeted as a “cost of doing business.” However, our experience teaches us that it doesn’t need to be this way. Cash recoveries can double while rooting out the repetitive, systemic causes of such infractions. Our team has the staff, skills, and unique Carixa software to help solve your problem of any scope or scale.
Deductions: Plague On Profits
The Consumer Goods Industry is a specialty here at Smyyth. Suppliers face enormous challenges resulting from large transaction volumes and industry trade practices, including returns, trade promotions, and vendor compliance issues. Handling and dealing with large retailers can be complex, especially considering the business rules that are mandated for billing and fulfillment.
The result of all this is significant revenue dilution caused by a myriad of disputes and customer deductions, constituting a substantial loss of profit for suppliers. The Smyyth business model and special Carixa technology are uniquely suited for Trade Promotion Management in this industry, as it provides the root cause identification, tracking, and collaborative workflow to maximize efficiency and recapture any erroneous deductions. Moreover, we are comfortable working with very large volumes.
Ship and Bill Correctly – Stop Errors, Deductions, and Compliance Penalties
By collaborating with the Retail Value Chain Federation, Smyyth is making available the Compliance Clearinghouse™. This is an expert, automated compliance alert service that alerts you to changes in EDI, On Time In Full (OTIF), labeling, packaging, billing, and shipping rules so that your operation can avoid billing, or shipping errors, as well as save the cost of the expensive compliance penalties and deductions.
CPG Returns Reconciliation
Our software, including Auto Cash, Deduction Management, and Returns Matching and Variance Reconciliation is specifically optimized for the consumer packaged goods industry to process major retailers autonomously, including Amazon, Target, Walmart, Kroger, CVS, and the rest
The difference between the customers’ debit memos for returns and what you receive often runs to a 10-15% overcharge between SKU, quantity, and pricing. Recently, we reconciled a year’s 1,000 returns totaling $20M from a key retailer and uncovered overcharges of almost $2M. This is typical.
We can deliver cash and recover deduction leakage due to reconciliation variances, including returns, trade promotions. Cash recoveries will result while uncovering systemic causes of repeat errors. We have the expertise and software to help solve problems of any scope or scale.
Chain Retail – Walmart, Target, Amazon Retailer Vendor Compliance Chargeback Penalties, and Fees
Major retail vendor compliance charges have been around for a long while but are now turning into a significant expense for suppliers, often amounting to 1-3 percent of revenues. These deductions, including OTIF penalties, amount to a lot of lost profits. After that, perhaps two years later, the retailer practice of hiring “post-audit” firms to find old invoicing, packing, or shipping errors in order to take more accounts receivable deductions can add up to a serious business problem for suppliers. Smyyth is your first line of defense to both recapture the invalid deductions and help you root out and correct the causes.
Benefits of our Deduction Management system include:
- Auditing CPG customer deductions to recover errors and root causes
- Consulting to improve the Deduction and Accounts Receivable process
- Comprehensive AR Outsourcing of Deductions
- Straightening-out purchase order compliance
- Deduction Management
- Cure projects for deduction backlogs
- Logistics claims and deductions
- Auditing Trade Promotions
- Massive Account Reconciliation
- Collections Automation
- Cash Discount management programs
- Returns matching and reconciliation
Our experience and expertise cover all aspects of the industry from food, CPG, and electronics to fashion goods and home entertainment.
In addition to Trade Promotion Management, Smyyth provides personalized services in:
- Deduction Management. Our best-practices deduction programs incorporate root cause analysis, research, and subsequent recovery of excessive deductions.
- Account Reconciliation Process. We automate reconciliation and repetitive matching routines and utilizing robotic processes automatically captures data from disparate sources and process it with configurable, multi-level rules for error-free results.
- Transaction Matching. With Carixa’s Matching Engine, many-to-many, one-to-many, or one-to-one relationships can be matched and reconciled.
Take Control Today
Are you interested in more information on what Smyyth’s Trade Promotion Management can do for your operation? Don’t hesitate to get in touch by calling our team today.