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Attempting to Address an Increasingly Serious Issue in the Moving Industry for my blog post this month

  • 1.  Attempting to Address an Increasingly Serious Issue in the Moving Industry for my blog post this month

    Posted 10-25-2018 09:36
    Attempting to address an increasingly serious issue in the moving industry

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    Mark Oakeshott
    Principal
    Mark Oakeshott Consulting LLC
    Petaluma CA United States
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  • 2.  RE: Attempting to Address an Increasingly Serious Issue in the Moving Industry for my blog post this month

    Posted 10-25-2018 12:39
    I have received a tremendous amount of feedback from trade associations and moving companies on this article.  The majority of moving companies are blaming themselves for being scared to report overdue invoices for fear of losing the relationship?  What's your view?

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    Mark Oakeshott
    Principal
    Mark Oakeshott Consulting LLC
    Naperville, IL United States
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  • 3.  RE: Attempting to Address an Increasingly Serious Issue in the Moving Industry for my blog post this month

    Posted 10-26-2018 10:28
    Hi Mark,

    It's an issue.  To some degree, the industry is segmenting into bookers and service providers.  Of course, we switch hats at a moment's notice but when it comes to corporate or government work, the bulk of it is still controlled or booked in a few countries, and increasingly by a smaller number of companies.

    The service providers want the business from the bookers so they are sensitive to balancing the requests for payment versus losing their goodwill.  Some bookers use this situation to their advantage and I have even seen messages that state that the booker is not able to pay the service provider until the corporate or government account pays them.  This results in the service provider being forced to finance the business of the booker, in a way.  But we have known this for a very long time...

    The Professional Cooperation Guidelines may offer a partial answer.  The document which the FIDI Global Alliance developed and has shared with the IAM is well written and not only contains a section on the rules of engagement for payment between industry trade partners, it also provides clear guidelines for many of the issues that often result in disputes between trading partners that affect prompt payment.

    So, here is an idea of how we could address the situation.  Please note that this is a discussion.  The IAM has not endorsed these ideas and it is simply presented here to prompt discussion and member input.

    • Encourage all IAM members to adopt the PCG and sign the acknowledgement document.  This will place the PCG logo in their company profile in IAM Mobility Exchange so that you can easily spot members who voluntarily adhere to the PCG.
    • Validated members can upload their scanned acknowledgement document as part of their validation process.
    • Encourage the IAM to develop an automated online dispute resolution and arbitration system based on the PCG guidelines using IAM Mobility Exchange.

    Here's how an IAM Dispute Resolution & Arbitration System (IDRAS) might work.

    1. In order to file a dispute, both the company lodging the dispute (disputer) and the company receiving the dispute (respondent) must be PCG compliant as documented in IAM Mobility Exchange.
    2. The disputer may select the respondent from a search in IAM Mobility Exchange and click an icon to initiate a dispute.
    3. The automated online system would require the completion of a checklist which would include referencing the relevant PCG guideline, uploading relevant documentation and making a specific demand for resolution.
    4. A dispute would not be eligible for submission until the checklist of requirements is complete.
    5. Once complete, the disputer initiates the dispute by pressing the submit icon.
    6. The respondent is alerted with an e-mail which would provide a link to the online dispute.
    7. The workflow of IDRAS would start a 15 day clock.  In this time frame, the respondent must:
      • Agree to the resolution or...
      • Disagree with the resolution
      • If the respondent takes no action within the 15 days, IDRAS will automatically register a decision in favor of the disputer
    8. If the respondent agrees, IDRAS will note this and keep the dispute open until the disputer acknowledges satisfaction with the resolution (acknowledges receipt of payment, or other completion of the relevant resolution)
    9. If the respondent does not agree, IDRAS starts a 15 day clock.  During this time:
      • The disputer and respondent must try to resolve the dispute between themselves
      • If resolution is reached between the parties, go to step 8
      • if resolution is not reached within 15 days, IDRAS moves the dispute to arbitration
    10. IAM will appoint an arbitration panel of 10 IAM members
      1. From this panel, 3 random arbiters will be selected who have no relationship to the parties in the dispute
      2. Any arbiter who has a relationship with one or both parties must recuse themselves and a new arbiter will be selected
      3. IDRAS will start a 10 day clock within which the arbiters will rule on the dispute
      4. The ruling of the arbiters will be final and binding on both parties
    11. During each phase of the dispute, IAM Mobility Exchange could use a system of small color coded icons which will display in both the disputer's and the respondent's company profile.  This will reflect the number of disputes and phase of each dispute resolution.  
      1. This would provide an incentive for both the disputer and the respondent to resolve their dispute amicably and promptly.  It may not be in a company's interest to show that they have multiple disputes in progress.  
      2. It would not be in a company's interest to have multiple disputes in progress against it.
      3. The information about the details of a dispute would be absolutely confidential between the two parties unless it moves to arbitration at which time, the arbiters would be permitted access
      4. Once the parties resolve their dispute amicably, no record of the dispute will be displayed anywhere including IAM Mobility Exchange.  No record of the dispute details will be retained in any database.

    At this point, this is just a concept and a discussion.  The IAM has not endorsed any aspect of this concept.  I present it here for discussion purposes only.

    Ray






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    Ray daSilva
    Mobility Exchange, LLC
    Washington, DC 20002
    E-mail: rdasilva@mobilityex.com
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