Chargebacks is an ugly 11 letter word, but unfortunately, they are becoming more and more prevalent in today’s modern world of fast moving goods.
Join B2BGateway and DSI on February 16th for a webinar to learn how your organization can be better prepared to avoid the dreaded chargeback!
In the 1970’s there was a huge rise in the large retail chain marketplace. Retailers like Walmart, Target, Best Buy and others recognized that their future success would depend largely on moving large volumes of inventory through their supply chains with maximum efficiency. So, these box-store groups began to invest heavily in automated warehouse and sophisticated systems that allowed the product flow from supplier to store to consumer with minimal human intervention.
When a non-compliant shipment comes in from a supplier, let’s say boxes with labels that cannot be scanned correctly, it becomes an exception that requires the manual intervention of the retailers staff and naturally added cost to the retailer to sort out.
Chargebacks became the retailers answer to controlling these exceptions and keeping their supply chains running as efficiently and smoothly as possible. When a supplier does not meet the terms of a retailer’s contract and the correct procedures are not followed, retailers can issue a charge back to cover the cost of the inefficiencies caused by an out-of-compliance-shipment. These chargebacks can be as much as 15% to 20% of an invoice.
To learn how you can put best business practice in place and avoid costly chargebacks which could be detrimental to your business join B2BGateway and DSI for a webinar on February 16th at 1pm EST. Full details and registration here.