Within the O2C domain, dispute management always stands out as being a process that has huge dependencies on other departments, more complexities, and a major pain area for most clients. For dispute management analysts, the most common areas of dispute are around quality, quantity, logistics, and pricing.
In today’s business environment, dispute management process is an integral part of the after-sales service. This requires the dispute process to be highly customer centric and is strongly dependent on multiple teams for verification and validation. However, most dispute resolution activities are slowed down due to:
- Limited visibility on root cause due to fragmented operations
- Manual effort and time for collaborating within departments
- Technological inefficiencies.
Studies conducted on the above tell us that these challenges can result in:
- High volumes of disputes – Large volumes of disputes are either invalid or inaccurate with unclear information, which can consume 25–35% of FTE effort
- Extended research time – dependencies on inter-departments leads to longer dispute resolution cycles, with an average of 63 days
- DSO impact – 55% of clients hold up the entire invoice if a dispute is raised against it, which often results in a delay in cash realization
- High costs – the manpower cost to manage the volumes and 5% disputes are always unresolved and written off, which leads to revenue leakage
- Customer dissatisfaction – locked up customer credit can result in delayed orders. This can lead to the risk of losing customers to competitors and have a negative impact on the financial health of the company.
How does a blockchain ecosystem work?
In a blockchain ecosystem, systems are connected to each other, giving the client real-time status and visibility of the entire transaction at every stage of the order. From the time an order is placed, the client knows the pricing that was quoted against what has been invoiced, the quantity that was ordered vs. shipped, and the quality of the material during manufacturing and packing against the delivery, etc. This reduces to a minimum or even eliminates the possibility of the client disputing an invoice or product, as can be shown in Figure 3.