In many instances, the credit issued by the manufacturer for product returns does not equal the actual credit due. Based on our experience, total manufacturer credit is undervalued by 200 to 300 basis points. We estimate this costs the industry $40 to $50 million annually in lost credit.
The return credit reconciliation is typically a very cumbersome, time consuming and manual process. Resource constraints do not generally allow for an internal post audit reconciliation function to be completed in a cost effective manner. As a result, most retailers simply accept the manufacturer credit as is without any further validation or post audit to ensure the proper amount of credit was actually received.
We developed a highly successful return credit reconciliation process that ensures your company receives the correct and appropriate credit for all returnable merchandise. Our detailed analysis is completed at the NDC and lot level. If it is determined that additional credit is due, KCA will coordinate and pursue the actual recovery effort directly with the respective manufacturers.