Streamlined Distributor Claims and Settlement With FieldAssist DMS

The Importance of Claims Management

Few aspects of supply chain management are as important as the distributor claim settlement and processing. This one activity alone, if efficiently digitized and automated, is enough to make a technology investment like DMS worth it.

Your business is the result of multiple complex processes coming together – and indeed, countless people and organizations working together. Settling claims, consequently, is also a complex task.

For distributors in particular, it is important for claims to be settled

• as accurately as possible – to avoid fraudulent claims, avoid leakages, and ensure financial integrity and sanctity, and
• as quickly as possible – to keep “money in the wallet” i.e. keep maintaining and rotating cash flows. More cash means more distribution, more circulation, more business, and ultimately more profits. And more profits for distributors means more profits for brands.
  

Types of Distributor Claims

Most claims generally fall under the following categories:

• Scheme/Promotion claims: Schemes and promotions such as discount offers, coupon codes, and so on disseminated by the brand to increase product sales.
• Margin claims: Brands provide outlet margins to retailers via their distributors. FieldAssist DMS automatically creates equivalent margin claims for distributors, facilitating smooth approvals and refunds from the brand.
• Return claims: Products returned by customers or retailers for any other reason, such as damaged products, expired products, products returned by customers, wrongful purchases, and so on.
• Custom claims: Distributors can also create their own, customized claim categories, such as for internal incentives and bonuses, reimbursement for transport and other expenses, and so on. Maximum limits can also be set for each claim type.

Why DMS for Claims Processing & Management

Typically, without a digitized and automated system, organizations are forced to hire dedicated personnel and maintain separate teams to handle claims manually. These employees then spend hours and days sifting through the received claims – analyzing, verifying, and processing them – and then finally sending them up the approval chain via email.

However, with systems like a DMS, which can directly integrate with your accounting and billing systems, the entire process is automated. For any FMCG brand, a Distributor Management System is an essential part of Supply Chain Automation. Here are a few reasons why a DMS is indispensable for Claims Management:

For example, a typical set of tasks can include ordering certain quantities of a product, or placing products at certain places to achieve planogram adherence, getting a market pulse by filling a survey, and so on. All these simple tasks are backed by business driven advanced AI algorithms without even revealing the complexity to the sales reps.

1. Save time with Automated Claims Settlement: With a digitized system, claims are settled much quicker and with less hassle. This means more Money in the Wallet, and more revenue.
2. Maintain regular distributor cash flows (‘Money in the Wallet’): With a DMS-based Claims Management process, distributors have access to a high amount of liquidity. They can maintain regular cash flows and thus, increase their ability – and thus your ability – to keep satisfying market demand.
3. Almost no mistakes: Since everything is automated and cross-checked digitally, chances of human error or mistakes are negligible.
4. Almost no mismatch or leakages: Nearly 100% of all settlements are genuine. The possibility of a mismatch or inconsistency is reduced to almost zero.
   
5. Quick approval process: No more sending emails back and forth. With DMS, you can create pre-defined and multiple approval levels and hierarchies. Claims are then sent to different stakeholders automatically according to predefined rules for approval. Workflows are customizable as per your needs.