Today, manufacturers and suppliers are dealing with a silent malaise that is spreading amongst their retail partners. These are called 'chargebacks'. Now consider this scenario - suppliers take an inordinate amount of care in packaging and shipping products only to later find that their retail partners have discovered that the products were incorrectly packed, the label was not as per standards, shipping windows were missed, there were errors or delays in advance shipping notices and finally, the invoicing was inaccurate.
The list of supplier-compliance is becoming long and is difficult to be managed for all products. And failure to comply with any one of them can cause not just serious monetary implications for retailers but also disputes between suppliers and retailers resulting in mountains of paperwork, long legal wrangles and a waste of millions of dollars.
The underlying problem is that many of the compliance and SLA-related processes in retail are paper intensive. It is difficult to track the paperwork and ensure it can later be identified and sorted in the event of a dispute over chargebacks. In addition, suppliers and retailers use diverse legacy systems for various internal teams to track shipments. The chaos and confusion can be substantial, especially as structured and unstructured data finds its way into various systems.
What suppliers and retailers need is IT that can replace ineffective and inefficient legacy systems with Managed File Transfer (MFT) platforms. These platforms provide complete control over how documents (structured, unstructured, B2B/EDI communications etc.) are managed along with transparency and visibility which are very useful in enhancing traceability. Coupled with this, add the ability of generating pro-active alerts and rectification processes, you then have a practical treatment for the chargeback headache.