Let’s start with an example, consider a manufacturer or vendor has issued a P.O. (Purchase Order) to its supplier for some kind of inventory. Upon receiving the PO, the supplier has made a mistake to fulfill the exact needs of the P.O. This has led to a chargeback as it gets rectified.
When a mistake like this occurs, it leads to a lose-lose situation for all parties involved.
The vendor loses time and potential profit from the customer.
The customer feels miffed due to the delay and difference in quality.
The supplier loses money to compensate for the losses faced by the vendor.
Chargebacks can be caused by innumerable reasons including human error and naturally, they can never be completely eliminated. They are unfortunately an accepted part of a supply chain.
However, in a resilient supply chain with end-to-end supply chain integration, chargebacks can be solved, reduced and prevented in the future to a great extent with the help of supply chain management solutions. Therefore, in this day and age of advanced AI (Artificial Intelligence) and supply chain analytics tools, it is simply not adequate to be able to solve chargeback issues when they arise.
A wise course of action: Take preemptive measures to reduce the probability of chargeback issues from arising.
Hybrid Integration Helps Prevent Errors in the Supply Chain
With the help of your supply chain analytics tools, you are made aware of an issue with the product the supplier has sent. The problem could be with the specifications of the product, the delivery times, the quantity, etc.
You know it too. It is important to find the root cause of the problem after which you can take the necessary steps to solve this problem. Through the use of current technology, you can make sure that this error doesn’t occur again. That is the power of a resilient supply chain.
This way you will always be one step ahead of any potential problems that could lead to chargebacks and maintain the flow of your supply chain.
With the help of visibility tools, you can be aware of the ins and outs of your operation and access all the data you need to keep your supply chain running smoothly.
Visibility Services to Gain Extensive Control over Operations
With the help of supply chain analytics tools and advanced AI technology, you will be able to gather an immense amount of data and use it to understand where and when a problem with the supply chain’s flow could arise before it even happens.
If any vulnerabilities in the system are discovered, essential measures can be taken to prevent these weaknesses from causing a problem that could lead to chargeback and subsequently a disruption in the supply chain.
If we consider a manufacturer who has implemented end-to-end supply chain integration to achieve complete visibility over every process and function, from the supplier end to the customer end, and that too on a single screen or dashboard. What benefits will the manufacturer have?
Extensive control over their operations and
The ability to predict a multitude of measures to maintain a streamlined workflow.
Since the entire operation is digitized, it significantly reduces human errors as there is no need for manual inputs at any point in the supply chain. Speaking of human error and POs, there is a need for programs and training to be held to educate and standardize the process of issuing and fulfilling a purchase order. Eliminating human errors like typos, misreading, etc. will directly lead to a significant drop in chargeback issues.
Analytics Tools to Improve Business Processes and Reduce Costs
With the exceptional power of supply chain analytics tools, you can prevent issues from arising in their operation. But not only this, analysing the immense amount of data collected and creating a vast number of scenarios of possible problems in the working of a supply chain can help you better understand and significantly improve your supply chain. This way, an already resilient supply chain can be improved even more to maximize efficiency and automation and reduce chargebacks.
With each refinement iteration, the process gets more efficient and effective and leaves little to no room for errors to occur. A process like this might feel costly at first but in the long run, it is proven to be sustainable.
Monitor Pro is here to Slim down Chargebacks
Implementing end-to-end supply chain integration with the help of Monitor Pro’s business solutions will allow you as a manufacturer to reduce PO errors and mitigate chargebacks that affect you whether you are a big conglomerate or small start-up company.
Some of the consequences of chargebacks are:
Negative effect on the bottom line &
Loss of sales
It is no surprise that these have to be reduced as soon as possible, for the business to progress.
We’ll be more than happy to get on a call and tell you about how we have been helping leading companies reduce chargebacks. We could also look at the issues your supply chain is facing and provide you a personalised consultation. Follow the link and book a consultation with our experts at your convenience!
It is time to reduce chargebacks and losses without losing real customers.