#1 Inability to handle the rising volume of compliance issues: Experts highlighted that retailers today have become much better at identifying compliance issues on the supplier’s end and charging them for them.
According to Kim Zablocky, most big-box retailers today have sophisticated inbound audit solutions that allow them to track compliance violations from suppliers more accurately. As a result, while these retailers were able to go after only 80-85% compliance deductions back in the 2000s, they can now spot almost 95% of all compliance issues.
HighRadius also found that many retailers give suppliers less time to resolve a compliance dispute. In contrast, the number of compliance deductions has significantly gone up at the same time.
#2 Lack of documentation to quickly resolve post-audit claims: Retailers leverage post-audit deductions to recover money they might have left by failing to claim funds due to the freight charges, the policies of the trade agreement, or shortages. Most big-box retailers have internal teams and third-party agencies looking for post-audit opportunities.
Since they typically take more than a year to audit after the shipment is received, post audits can be challenging to research and validate because suppliers may not quickly find the information needed to support or dispute the claim. Therefore,suppliers must have a strategy to resolve post-audits proactively.
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.