The ability to manage chargebacks efficiently is critical, according to electrical distributor Summit Electric Supply CIO David Wascom. In a recent MDM webcast, Wascom said Summit processes about 145,000 chargeback documents per year, and the company has roughly 2,000 chargeback agreements active at any given time. Summit has 30 vendors with chargeback agreements.
“It’s simply not possible to expect that to be handled efficiently through some sort of non-automated solution,” he said.
Before moving to a new system, Wascom says the company’s chargeback process, based in a legacy system that was more than 20 years old, involved too much manual review. “It was inefficient,” he said.
Wascom said automating the process with software from Vistex and SAP helped Summit to take advantage of as many chargeback and rebate programs as possible. It has also freed up employee time to manage customers better or seek additional rebate income. “We’ve seen significant ROI in terms of our investment,” he said.
One of the most beneficial aspects of Summit’s new chargeback process, he said, is that the system creates records and documents separate from the billing process. For more from Wascom, watch the webcast free on demand.