It's Time to Take Back Your Revenue 😤

Hey Vendorville,

⬆️ This doesn’t have to be you

We all know losing money to deductions, fines, and supply chain issues is the worst—not to mention costly! Only 20-30% of deductions are ever disputed, even though an average of 5.6% of all invoices are lost to deductions. 😓

But here’s the silver lining: with the right approach, you can start reclaiming those lost dollars.

Your Game Plan 🕹️

…jk, it won’t be this complicated 😅

Recovering lost revenue starts with a strong plan. These five steps can help you take control of areas where your revenue is slipping through the cracks:

1. Form Your Team 🤝

Assemble experts from accounting, supply chain, operations, and sales to build a diverse recovery team. A well-rounded group ensures all aspects of revenue loss are addressed effectively.

2. Identify Key Responsibilities 📃

Assign clear roles to team members for tasks like deduction management, dispute resolution, and data analysis. Document responsibilities to streamline efforts, enhance accountability, and avoid missed opportunities.

3. Hold Cross-Functional Team Meetings 💻

Schedule regular meetings to foster collaboration between departments. Share data, insights, and best practices to identify loss patterns and develop a holistic recovery strategy.

4. Identify and Address Root Causes 🌱

Appoint project managers to tackle supply chain inefficiencies, pricing discrepancies, and compliance issues. Ensure they track progress, set timelines, and report outcomes.

5. Create and Track Key Performance Metrics (KPIs) 📈

Establish KPIs to measure success, identify improvements, and assess the impact of your recovery efforts on overall performance.

💡 Related Reading: Building A NextGen Revenue Recovery Team

If you’ve already got a revenue recovery strategy established, you can take your efforts to the next level with these best practices:

Adopt a proactive mindset: A proactive team is key to long-term success, as it anticipates and addresses potential revenue loss before it happens. This mindset also drives continuous improvement, encourages innovation, and helps your business stay ahead of challenges.

Use a 50/50 strategy: Allocate 50% of your time to disputing deductions and 50% to root cause analysis (RCA). Treat the source of the problem, not just the symptoms.

In Other Retailer News 🗞️

Forbes

Target Shares Tumble 18% After Earnings Fall Short

“Shares of Target dropped by 18% on Wednesday, pacing what would be the stock’s worst day in more than two years after the retailer announced third-quarter earnings and revenue that fell below analyst expectations.”

Supply Chain Dive

USPS plans 2025 rate hikes, including big Parcel Select increase

“The pricing changes, slated to take effect in January, aim to provide a revenue boost for the financially struggling agency.”

SPS Commerce

Supply chain performance monitoring: What’s at stake?

“Recent tech advances make it possible to track supply chain performance in real time by continuously analyzing data—and logistics leaders are taking notice.”

Rick’s Tips💡

“Walmart recently announced that there was an issue that affected the cost calculation for some items on invoices dating September 24 - October 17.

On the affected items, cost values were accidentally rounded to the nearest dollar, which ultimately impacted receiving value and subsequent payments to suppliers.

As a result, you may notice account deductions if overpayment occurred or additional payments if underpayments occurred during that timeframe.”

Let’s Circle Back ⭕

Are you doing any holiday traveling? ✈️One-Click Rick recently returned from an adventure in Seoul, South Korea! He's still daydreaming about the city’s vibrant streets, amazing food, and bustling markets.

🎄If you’re looking for a holiday getaway, Travel & Leisure named these U.S. towns the most charming spots to experience the magic of Christmas:

Aspen, Colorado
Ogunquit, Maine
Vail, Colorado
Nantucket, Massachusetts
Orlando, Florida
Bentonville, Arkansas*

Whether you're planning a trip or just cozying up at home, we wish you safe travels and memorable moments this holiday season.

* Okay we admit it, One-Click Rick snuck this one on the list, but we still think it's a pretty dreamy Christmas destination 🎄

Sincerely,

❤️ Your Friends in Vendorville