In a perfect world, product deliveries would never arrive late, contain shortages, or be mislabeled. But we do not live in a perfect world. Customer deductions continue to be a problem across many industries for companies of all sizes. Discounts, late deliveries, mislabeled products, shortages and other chargebacks continue to erode the bottom line of companies causing burdensome back office workload and millions of dollars of deductions every year. The companies that can minimize the “self-inflicted” deductions and marginalize the “cost of doing business” deductions will experience less of these deductions diminishing their revenue and gross profit.
Jessica Butler, Principal at the Attain Consulting Group LLC, put together an educational benchmark survey called “Customer Deductions: 2015 Benchmark Survey.” Attain Consulting Group is a deduction management advisory firm dedicated to helping companies improve profitability by reducing and controlling chargebacks and deductions. The survey results provide information from over 500 companies of various sizes from various industries. The survey can help guide you in evaluating your current deduction management performance as well as developing best practices to take control of deductions.
To access the full 2015 benchmark study, click here.