Deduction recovery can be a headache for many suppliers, especially when retailers impose chargebacks for discrepancies. But it doesn’t have to be that way. If you’re struggling with deductions or not recovering the full amount you're owed, it might be time to take a hard look at your deduction recovery strategy. Here are five signs your approach is outdated and why it's costing you.
1. You’re Relying on Manual Processes If your deduction recovery strategy still involves manually tracking and disputing chargebacks, it’s time for an upgrade. Manual processes are time-consuming, prone to human error, and inefficient. Relying on outdated systems can also cause you to miss vital trends, delay recovery efforts, and ultimately lose revenue.
What you can do: Invest in a deduction recovery platform or partner with an expert service like HRG that combines automation with human insights. This hybrid approach ensures faster recovery and allows you to stay on top of ongoing issues.
2. You’re Missing Out on Technology’s Power In today’s digital age, there’s no excuse for not using technology to support your recovery efforts. Software tools can automate tedious tasks, analyze deduction trends, and flag recurring errors for dispute. But if you’re not leveraging these tools, you're likely losing money.
What you can do: Integrate technology into your recovery process to automate repetitive tasks, flag discrepancies faster, and track chargeback patterns in real time. AI-driven solutions can speed up the initial stages of the dispute process, allowing your team to focus on high-priority cases.
3. You Don’t Have a Formal Dispute Process
A strong dispute process is crucial for effective deduction recovery. If you don’t have a structured, repeatable process in place to handle disputes, you’re essentially gambling with your recovery efforts. This can cause missed deadlines, incomplete documentation, and the failure to escalate cases when necessary.
What you can do: Develop a standardized process for submitting disputes, tracking progress, and managing outcomes. Clear guidelines will ensure you’re not only more efficient but also more successful in recovering funds. And remember, there’s power in having experienced professionals handle complex disputes.
4. You’re Not Tracking Recurring Deductions
Recurring deductions often signal systemic issues, such as incorrect pricing, miscommunication with retailers, or product discrepancies. If you’re not identifying patterns in these ongoing issues, you’re leaving money on the table—and not solving the root cause of the problem.
What you can do: Use data analytics to track recurring chargebacks and identify the root causes of these deductions. By pinpointing the source of the issue, you can take corrective action and prevent similar deductions in the future.
5. You’re Relying on Manual Reporting
Reporting is a critical part of deduction recovery. If you're still generating reports by hand or using outdated software, you’re missing the chance to gain real-time insights into your recovery efforts. Without adequate reporting, you won’t know which cases are at risk or what actions to prioritize.
What you can do: Switch to an automated reporting system that provides real-time insights into your deduction status. An effective dashboard will let you monitor ongoing disputes, track recovery efforts, and make data-driven decisions.
Conclusion: If your deduction recovery strategy is showing any of these signs, it’s time for a change. Technology and expert-driven recovery are the keys to maximizing your recoveries.
HRG blends cutting-edge tech with years of industry expertise to ensure you get the most out of every deduction.