A Closer Look At Collections & Dispute Management Solutions In Order-To-Cash
Collections Dispute Management Solution
Having sound collections dispute management solution is key element to establishing an effective order-to-Cash (OTC) process. An OTC-oriented solution with powerful collections dispute management capabilities can help organizations move priority invoices faster, increase the number of payments received, reduce the time and manual effort associated with DSO calculations, and importantly, quickly address customer disputes before it negatively impacts the customersupplier relationship.
For executives in finance evaluating OTC solutions, it is vital to understand the intricacies of collections dispute management system and the corresponding workflow process from start to finish. With that in mind, we have crafted this guide which offers an overview of collections dispute management solutions and how they fit into an OTC process.
How do Collections Dispute Management Solutions Work?
The first step in the collections dispute management process is for customers to send disputes to the dispute manager. This is typically achieved through web portal or an email drop-box. The dispute manager is then responsible for process automation of dispute handling. This includes validating the dispute, confirming the client?s identity and authenticating invoice related data. Here, the validation process can ensure accuracy and eliminate any fraudulent activity. It also involves analyzing the data, cross-referencing it with customers and service providers, and understanding the dispute conversation history.
Once the data has been validated and the dispute is submitted, the dispute manager sends an automated notification to the customer who sent in their dispute. This serves as reminder and can be used as an invitation to further review and discuss the matter, or call to action if necessary. Simultaneously, the system sends alerts, notifications, and reminders to staff members whose help might be required in the dispute resolution process. This automation, and the fact that the system can be accessed from any device, drastically speeds up the dispute resolution process.
After the notifications have been sent, the dispute manager and staff members can review the dispute and start line of communication with the customer over their preferred channel. This typically includes emails, chats, and phone calls. Through the communication process, both parties can compare notes, agree upon resolution strategy, and securely share documents.
Once an agreement on the resolution has been reached, the dispute manager can use the solution to generate dispute resolution statement. This statement is then shared with the customer to accept or reject, and ensures that both parties recognize the resolution of the dispute.
Benefits of Collections Dispute Management Solution
? Accelerated cash flow: Disputes can slow down or even halt the payment process, which can lead to expensive late fees and interest. By resolving disputes quickly and efficiently, organizations can reduce delays and ultimately increase the speed and accuracy of payments.
? Improved customer relationships: Automating the dispute resolution process helps to ensure that all disputes are resolved fairly and in timely fashion. This improved customer experience can help strengthen customer relationships and ultimately, increase customer loyalty.
? Enhanced visibility: The integrated dispute platform captures all dispute related data, including conversation history and supporting documents, to maintain an ongoing audit trail. This provides enhanced visibility into the dispute resolution process and allows staff to quickly identify any potential risks, reduce processing time and time to collect.
Conclusion
A collections dispute management solution is crucial aspect of an effective order-to-cash process. By automating the dispute resolution process and providing the ability to securely communicate and collaborate with customers, companies can reduce the risk of disputes and accelerate the payment process. This, in turn, answers puts organizations in better situation to maintain healthy customer relationships and steady, reliable cash flow.
