Robots and Real World Amazon Dispute Cases


Disputes are a part of life and processing them takes away a huge chunk of manpower and time. But things get complicated manifold when you have to adopt a complex workflow just for handling deductions from only one customer ? Amazon. Amazon has ties with quite a number of vendors. However, the Amazon Vendor Central is a nightmare for deductions analysts because of its cumbersome processes for resolving disputes.

Contents

Chapter 01

Executive Summary

Chapter 02

How difficult is it to raise a claim on VC?

Chapter 03

How Do Robots Fare Against Vendor Central

Chapter 04

Robots and Real World Amazon Dispute Cases

Chapter 05

Summary
Chapter 04

Robots and Real World Amazon Dispute Cases


1.Shortage Deductions

Shortage Deductions   Why do they happen

“86% of companies said that shortage deductions have increased in the past 6 months ? Amazon Deduction Issues/Findings, Attain Consulting Group”

How they are currently resolved

  1. Analysts login to VC and download each claim manually
  2. The ASIN number in the claim is manually matched with the invoice number in the ERP. The ASIN appellation of Amazon is complicated and modified repeatedly
  3. Analysts go through the claims individually and identify the shortage disputes
  4. Analysts collect backup documents from carrier portals, emails, paper
  5. Analysts open each dispute separately in VC and upload the relevant documents such as POD, BOL, claim
  6. Analysts key-in the relevant information in VC for each dispute

How does Automation help Shortage Deductions

2.Pricing Deductions

Why do they happen Pricing Deductions

“65% of vendors said that they experience pricing challenges with Amazon† ? Amazon Deduction Issues/Findings, Attain Consulting Group”

How they are currently resolved

  1. Analysts login to VC and download each claim manually
  2. The ASIN number in the claim is manually matched with the invoice number in the ERP
  3. Analysts go through the claims individually and identify the pricing disputes
  4. Analysts login to VC and download negotiated pricing document
  5. Analysts upload the pricing documents relevant to that particular pricing dispute
  6. Analysts key-in the relevant information in VC for each dispute

How does Automation help Pricing Deductions

3.Co-op Deductions

Why do they happen Co-op Deductions How they are currently resolved

  1. Analysts login to VC and download each claim manually
  2. The ASIN number in the claim is manually matched with the invoice number in the ERP
  3. Analysts go through the claims individually and identify the co-op disputes
  4. Analysts check product catalog and pricing agreement in VC
  5. Analysts go back-and-forth across Sales and Credit teams for deal sheets and trade documentation
  6. Analysts key-in the relevant information in VC for each dispute

How does Automation help Co-op Deductions

4.Vendor Chargebacks

Why do they happen Vendor Chargebacks Amazon will review your performance from the prior six weeks and issue Amazon Vendor chargeback fees based on the following criteria:

  • 2% cost of product: if the ASNs submitted have less than 100% compliance but greater than 95% from the trailing six weeks.
  • 4% cost of product: if the ASNs submitted have between 70% – 95% compliance from the prior six weeks
  • 6% cost of product:† if the ASNs submitted have less than 70% compliance from the prior six weeks

How does Automation help Audit trail

Robot
Robots track all forms of communication with vendor and stores all backup documents in one source for effortless disputing in case of invalid chargebacks

Auto- compliance

Robot    

  • Attaches all relevant documents for disputing
  • Eliminates errors due to manual keying in
  • Disputes as soon as a claim is raised

 

5.1 Bonus: Dispute Validity Predictor

Why auto-resolve disputes?

  Dispute Validity Predictor

What Robots can do? What Robots can do?

5.2 Bonus: Drill-down Capability Additional visibility with Reports

Robot

Robots provide real-time out-of-the-box and custom reports for end-to-end managerial view

What Robots can do? Robot

“It allows drilling down on inefficient sub-processes and applying speedy corrective measure”

  • Reports provide a view on the number of deductions and the type of deductions happening periodically for different geographies, warehouses, vendors and customers
  • Reports provide C-level Executives with visibility on cash flow and working capital metrics such as Deductions Day Outstanding, write-offs, volume of deductions, deduction values and more
  • Reports allow managers to track the productivity of analysts and take instant corrective actions on identifying process inefficiencies

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HighRadius Deductions Software acts as a powerhouse for proactive deduction management to prevent bottom-line erosion. It provides automation, process standardization, and a platform for cross-departmental and customer collaboration. It supports deduction management by providing some key features like back-up document capture which captures deduction data from customers and supplies the information required for resolution; auto-capture proofs of delivery (PODs), bills of lading (BOLs) from carrier portals & emails; structured deduction resolution, collaboration & approval workflows to streamline the communication and approval process; along with automatic deduction correspondence, and automatic data push to customer portals. The result is a proactive deduction management operation that recovers revenue normally lost to invalid deductions.