Financial Performance

The management of supplier-to-customer claims requires a high degree of competence. It begins with their identification across all phases of the lifecycle of the products, their quantitative and qualitative assessment, and their classification into contractual or negotiable claims. The preparation of the interactions with the customers includes the definition of objectives, the evaluation of risks and the development of strategies and tactics. Execution focuses on implementing the released strategy and handling customer objections. It emphasizes proactive leadership and appropriate communication. Intermediate and final results are documented, lessons learned are formulated and exploited.

Negotiating claims may require the involvement of motivational or consequential levers to ensure that satisfactory results are achieved. These may include the reconsideration of financial parameters such as price agreements or payment terms. But they can also involve operational aspects such as flexibility and delivery conditions, or strategic aspects such as cooperation arrangements. Other resolution options, e.g. third-party mediation and/or arbitration, can also be addressed, usually with the aim of finding ways of avoiding them, in the interests of both parties. The various levers suggested highlight the importance of the flexible, strategic alignment and proactive management of such negotiations.

Processing modifications to products and/or their production processes, whether they originate from customer or internal requests, should never be seen as a routine task essentially handled by the technical departments. On the contrary, it requires a strategic approach that calls for cross-functional collaboration in which the sales department plays a central role, far beyond the simple submission and negotiation of quotations. Sales leadership must, in active coordination with all the functions concerned, ensure that risks are eliminated and opportunities fully exploited. The change management process represents an additional opportunity to improve the company's competitiveness and profitability, while satisfying customers.