Leveraging Technology To Streamline A Dispute And Deductions Management Process
Disputes Deductions Management Service
Before selecting service, it is important to understand the objects and processes associated with DDM. Key components of DDM include:
? Disputes Deductions Documents: Disputes and deductions documents (DDDs) are documents sent by customers when billing data is incorrect and when payment is not received in its entirety.
? Disputes Deductions Claim Types: Disputes and deductions are categorized into several classes including rebate claims, overpayments, chargebacks and returns or allowances.
? Account Document Workflow: Workflows of both DDMs and customer accounts must also be mapped. This entails confirming the number of accounts in dispute and the many tasks associated with dispute resolution.
An in-depth understanding of these core components of the service is fundamental to the success of DDMs in order to cash processes.
Step 2: Establishing Key Performance Indicators (KPIs)For management and optimization of dispute, billing, accounts receivables and claims processes, key performance indicators should be established. Delineating KPIs helps to identify areas of improvement and allow management teams to set performance objectives. Examples of these metrics include time to resolution, deduction amount versus disputed amount and percent accuracy of deductions. By aligning KPIs to process objectives, managers can identify trends, areas for improvement and quickly address any problem areas.
Step 3: Assigning Core Responsibility for DDM ResolutionRetaining ownership of the DDM process is paramount for successful resolution. It is necessary to assign specific roles and responsibilities for departments such as order to cash, credit and inventory team and sales team. This can be done by increasing awareness, hosting training sessions and setting process objectives.
Step 4: Automating Data Collection, Processing AnalysisAcquiring DDM service with automation tools is essential for data collection, processing and analysis. Automation is the key to creating efficient processes, including electronic document archiving, electronic distribution and data mining for dispute and deductions trends.
Step 5: Implementing an Automated Dispute Settlement ToolThe manual handling of disputes can take days or weeks, depending on the process and the amount of data. To minimize dispute resolution time, settle disputes quickly and increase accuracy of settlements, automated dispute settlement tools can be leveraged. Automated dispute settlement tools allow customers to communicate the details of dispute before submission is even initiated electronically.
Step 6: Leveraging Dashboards ReportsWithout the proper tracking and monitoring tools, managing and improving DDM processes can be challenge. Dashboards and reports can be used to quickly pinpoint any issues, leading indicators and correlation with other process KPIs when compared to targets or performance objectives.
Step 7: Formulating Effective Workarounds Best PracticesOnce DDM service is selected, tested and implemented, identifying best practices and developing workarounds will be paramount to successful resolution. DDM processes are complex and require data pertaining to customer accounts, product information, employee productivity, industry related news and events and operator workflows. In addition to best practices and workarounds, brainstorming sessions and team collaboration should be utilized to develop processes that are effective and sustainable.
By carefully following the steps discussed in this guide, organizations can acquire powerful DDM service to manage customer deductions and issue resolution. Doing so will help increase the speed of dispute resolution, limit reduction of cash flow, and create long-term cost savings.
