As the CPG business landscape remains conducive to valid trade promotion discounts & compliance issues, manufacturers like Church & Dwight persistently try to recover every penny of the non-trade deduction claims raised by customers. But with the existing ERP capabilities at Church & Dwight, most of their deductions lay unidentified. The deductions team faced trouble investigating & prioritizing the recoverable dollar amounts, and the dispute resolution process failed to make any headway.
Multiple disparate systems plus frequent to-and-fros across several teams led to delay in closing the disputes. Without any automation, the deductions team had to submit to the ordeal of extensive manual processes. The team had to manually gather all the backup documents and data relevant to every dispute raised across several different sources like ERP, TPM, emails, customer portals, etc.
Like most other CPG companies, Church & Dwight had a policy of writing off any deductions under a threshold value of $100. Due to frequent low-dollar value short payments claimed by the large retailers, Church & Dwight wrote off deductions worth ~$5M every year under this tolerance. As a result of broken visibility, low-dollar value deductions emerged as a significant pitfall because it was hard to track them down and gauge their overall impact on the bottom-line.
Church & Dwight Co., Inc. is one of the fastest-growing CPG companies. With a revenue of $4.9 Billion, they are a leading producer of baking soda. ARM & HAMMER™ brand is a highly trusted trademark for a broad range of consumer & specialty products.
Consumer Packaged Goods
Tracking or identifying any payment discrepancy was effortless, and hence the deductions team could rather drive more of their focus toward resolving the non-trade deductions. Augmented visibility into the different categories of deductions helped them identify the recoverable amounts and prioritize their efforts toward resolving them.
By automating their deductions process with the help of HighRadius, Church & Dwight witnessed a significant reduction of manual & repetitive tasks. The solution helped the team do away with the manual research, aggregation & linking of backup documents like PODs, BOLs, etc., from multiple sources like emails, customer portals, and TPM, saving work hours. The solution also ensured 100% deductions to be automatically coded at the source.
A centralized repository helped keep an eye on all deduction line items, including disputes raised and resolved. A single, consolidated source of truth for all the deductions related data helped fix accountability and visibility.