Providing resolutions to various types of disputes

4. Provide resolutions to each type of disputes

Different dispute types require different resolutions. Therefore, you reach out to others besides your team. For example, a pricing-type dispute can be solved by sales, while an administration-type dispute can be solved by sales administration or credit administration.

Collaboration with others, especially sales, is critical at this stage of dispute handling. Because dealing with customers' disputes is also part of selling, as well as maintaining trade relationships. If a customer's dispute is resolved quickly, the customer's satisfaction level is likely to be higher than one where the dispute is neglected.

It is important to set a timeline for resolving each dispute type. Quality-type disputes typically take more time to resolve than pricing-type disputes. Some disputes may require tailored approaches, which are more time-consuming than the standard resolutions of their dispute types.

It is also equally important to set a limit to how far you would like to resolve disputes. An example is whether you would pursue litigation over certain disputes. Besides incurring high costs, legal action does not always guarantee success. You will need to manage the customers well, too. Because lengthy litigation is known to have adverse effects on trade relationships.

Establishing boundaries of the time and resources you can allocate for dispute resolutions also helps determine when you should extend your collaboration. You can utilise the strength of strategic partners with specialist expertise to resolve disputes that are over your set limit. More information on this in the guideline "6. The key to successful collections of disputed invoices".

Next: Adjust your collections to the dispute handling progess