As a high-growth CPG, you know in-house deduction management isn’t just frustrating — it’s unsustainable. First, you’re stuck categorizing deductions line by line. Then comes the convoluted dispute process set by distributors like UNFI and KeHE. Before you know it, you’re burning hours a week that you don’t have to spare. And with revenue on the line, you can’t afford to play fast and loose with this mission-critical accounting function.
That’s why the savviest CPGs outsource deduction management to third-party solutions. But that begs the question: What kind of solution is best — a legacy software, an AI-only software, or a service?
Spoiler alert: none of the above. You don’t need software or a service; you need a powerful blend of both. In this guide, we’ll cover why standalone solutions fall short. Then, we’ll break down how to adopt that sweet, hybrid option to reclaim revenue and take control of your trade spend.
Standalone Deduction Management Solutions Break Down at Scale
As you expand your retail partnerships, the amount of top-line revenue tied up in invalid deductions translates to an increasingly high dollar amount. Winning it all back and keeping cash flow strong takes a bulletproof deduction management solution.
Many standalone options — from legacy SaaS tools to service-only providers — claim to deliver on this front. But most don’t live up to their lofty promises, leaving critical gaps:
Legacy Deduction Software Creates Manual Legwork
Many teams attempt to avoid operational disruptions by using familiar deduction management tools, like software 2.0 incumbents tacked onto TPMs. While these options might categorize some deductions, they rarely do it accurately — and always leave you with the full lift of transferring and acting on all this data.
Since most legacy solutions don’t directly integrate with modern accounting systems, you’ll have to move deductions data by hand in order to sync it back to your general ledger codes and create credit memos.
As for filing the disputes? You’re on your own. That means cross-referencing deductions with marketing calendars, manually gathering supporting documents (like purchase orders and bills of lading), and emailing distributors with all the evidence. And, if you actually want to make noise in their crowded inboxes, you’ll likely have to send multiple follow-ups.
These tedious processes increase the chances of error and slow your team down, causing you to miss dispute deadlines and leave revenue on the table. And working out of these tools will only become a bigger slog as you grow and deductions pile up.
AI-Only Software Operates Without Human Guardrails
For brands wary of adding manual overhead, trading in legacy tools for AI-only solutions might seem especially appealing. These tools claim to automate away their predecessors’ pain points by powering the entire deduction workflow — from categorization to dispute filing.
The catch? AI-only solutions are a little too automated, resulting in frequent misses. Let’s say a bill of lading includes a handwritten note. AI won’t be able to interpret that nuance and may erroneously classify a valid deduction as invalid, or vice versa. Since these tools jump straight from classification to dispute filing without human oversight, you risk filing weak disputes that get rejected.
AI tools are very powerful, but they’re not mature enough to operate without crucial human context. If you want to maximize win rates, you still need to loop in a team of human experts.
Service-Only Solutions Limit Control and Leave You in the Dark
Some brands choose to opt out of software entirely and delegate deduction management to a service-only solution. As they see it, putting the job in expert hands is a great way to recoup revenue while reclaiming team resources.
This route might be tempting in theory. But handing off your deduction management process to a service-only provider comes with a tradeoff: relinquishing visibility into your deductions and trade spend.
Lack of transparency into which disputes you’re filing and what you’re winning back may limit your ability to uncover patterns and opportunities to streamline the process. And without a full view of your trade spend, you’ll also forgo the chance to surface granular insights into line items like slotting fees and coupons. When you’re allocating budgets and evaluating your highest-ROI opportunities, you don’t want to resort to guesswork.
Service-only solutions don’t work because they silo deductions from the rest of your financials, denying you the holistic view you need to optimize your cash position.
Glimpse’s End-to-End Deduction Management Solution is the Full Package
Glimpse doesn’t ask you to make any concessions. With our AI-powered software and embedded team of analysts, you get all the benefits of a software and service wrapped into one neat package.
Plus, our cost-effective solution is purpose-built to grow alongside scaling CPGs. Our large team of experts is always available to transparently walk you through all the ins and outs of deduction management. Even better? We’re backed by $10M in fresh funding, which we’re actively investing in new tech and talent to help supercharge your growth journey.
With Glimpse, you’ll enjoy:
Deduction Categorization, Reconciliation, and Dispute Filing — Done For You
Glimpse’s tech stack-agnostic software and onshore analysts fit seamlessly into any existing workflow, tackling the entire deduction management process on your team’s behalf. No manual data movements, internal document gathering, or distributor nudging required.
To do this, Glimpse automatically pulls data from all your major internal and external sources, including distributor portals, internal trade documents, freight documents, and promo calendars. No more logging into multiple dashboards or manually compiling information across siloed systems. Then, our AI classifies every deduction and syncs it back to the general ledger codes in your accounting system.
From there, our team of experts reviews these categorizations, assembles all the necessary documentation, and directly files compelling disputes for you. And if we don’t get prompt responses, we’ll keep pinging until every dollar is back in your pocket.
Don’t believe us? Just ask buckwheat snack superstar Lil Bucks. While their team focused on scaling Whole Foods nationally, Glimpse recovered $23,000+ for them at a 91% win rate — all in just the first six months of working together.
Strategic Guidance From Industry Experts
Glimpse’s expert analysts don’t just work for you — they work with you, functioning as an embedded, EIR-style extension of your finance team. Each analyst brings 7+ years of industry experience and operates as your dedicated partner, overseeing every single step of the deduction management process.
In fact, our team always double-checks every line item to ensure you’re never filing an invalid dispute or letting a valid one slip through the cracks. Our analysts can interpret complex edge cases and niche, hard-to-dispute deductions, like incorrect early pay discounts, receiving errors, or split deductions. We’ve seen it all, and we’re equipped to help you win even the most uphill disputes.
We’re also ready and eager to advise on best practices. If, for instance, we notice that you aren’t applying off-invoice (OI) deductions, we’ll let you know so you can start reconciling discounts upfront.
And we won’t hesitate to give high-level forecasting tips either. Whether we see an opportunity to factor spoil allowance into your KeHE budget or build administrative and compliance fees into your UNFI budget, we help you improve your trade forecasts and align them with actuals.
360-Degree Deduction Visibility and Real-Time Cash-Flow Control
Even with Glimpse’s expertise and automation at your fingertips, you’re still in the driver’s seat. Our user-friendly portal provides a paper trail for every single deduction — valid or invalid.
Plus, you’ll get real-time visibility into all active disputes. That way, you always know what your deductions look like, which ones you’re fighting, and precisely how much you’re winning back. This intel lays the foundation for holistic financial decisions that keep your cash flowing and drive long-term growth.
Consider the case of the buzzworthy ramen brand, immi. By partnering with Glimpse, they gained both a better understanding of retailer deductions and a fuller, more granular view of their trade spend. Now, they can see which partnerships and promotional opportunities are paying off and why. The result? $50,000+ recovered to date and 9X ROI.
Ready to Put Your Deduction Management on Autopilot?
Join industry-leading brands like Lil Bucks, immi, and Supernatural Kitchen, who trust Glimpse to transform their deduction headaches into cash flow wins.
Want to see how much revenue our team can recover for you? Book a demo today!
