Is a process in which the company plans, implements, manages payment and reimbursement of claims from clients, partners, or customers.
In the supply chain industry, Principals usually work with several distributors where trading activities are carried out through complex channels and processes. Transaction complexity can increase with the higher number of distributors, making it difficult for the principal to manage all claim processes by themselves (from documents, submissions, to budgets).
Claim and budget management carried out by the Principal are usually related to trade marketing activities or trade promotions.
A principal can run multiple kinds of trade promotions, all at the same time with different variations on the type of product being promoted or program type. From securing strategic shelf location in retail stores, point-of-purchase display material, merchandise gifts for every purchase, incentives for stores, etc.
Each type of program can have different budgets, terms, and conditions. Therefore, implementing systems such as Distributor Claim Management can help Principals to manage claims while also help distributors to claim prizes.
Principal Constraints in Managing Trade Promotional Claim
Trade claims can take 8-12 weeks to process due to a large number of communication layers, document checking stages, and paper-based approval processes.
Why Is it Important to Have a System?
1. Ensure Claim Processing to Run Smoothly
In addition to increasing Return on Investment (ROI), the system can assist Principals in ensuring that all important requirements have been completed before claims can be reimbursed, rejecting claims if they are not in accordance with the terms and conditions, and also monitor expenses to stay below the budget. Distributors can also monitor the progress of their claim status in a transparent manner through the portal.
2. Follow the Proper Tax Rules
Taxes are a complex yet very crucial thing in the billing and budget reimbursement process. The taxation requirements for each type of promotional activity may vary.
Advotics Distributor Claim Management
Is an Indonesia-based SaaS startup that specialized in supply chain management systems. Advotics system can facilitate distributors in claim submissions and help principals in managing claims. Distributor Claim Management solutions allow companies to shorten their claim processing cycle down to ¼ of the manual processing time, thereby reducing operating costs.
After distributors submit claims on a self-service basis platform, the principal can monitor, validate, settle the claims, and also identify claims that are invalid or duplicated. The approval matrix can also be adjusted to the principal company rules so that the validation process can flow automatically. Information related to all claims is stored in a centralized manner which allows users to accurately access the progress status of the review process, remaining budget, and other metrics.
The claim disbursement process is carried out in the client or distributor system. After going through the disbursement process, the claim status will change to ‘disbursed’ if it has been successfully disbursed or rejected if the claim is rejected. If a claim is successfully disbursed, user can enter proof of disbursement and proof of withholding tax (WHT slip).