We are delighted to announce that Enable will be presenting its rebate management software at the NAHB International Builders’ Show in Las Vegas from January 21-23.
DealTrack Blog — Industry Sector: Building Materials
SPAs (Special Pricing Agreements) are a common vendor program in many industry sectors. The program gives a special product discount for verified sales to an ultra-competitive event where in-stock discounts can’t secure the order.
SPAs trace their roots back to the 1970’s but have shown significant growth in the past decade. As B2B e-commerce now counts for an estimated 15% of all orders and grows at 8% per year, SPAs have grown significantly as price and availability are easily and quickly researched.
SPAs are now used by 77% of all distribution firms in North America; second only to volume rebates which are used by 90% of distributors.
Topics: Rebate Management, Rebate Accounting, Industry Sector: Building Materials, Industry Sector: Wholesale Distribution, Industry Sector: Retail, Industry Sector: Buying Groups, Rebate Management System, Special Price Agreements SPAs
SIG is a leading European provider of specialist building materials, with close to £3bn of annual revenues and around 9,000 employees across the UK, Ireland and Mainland Europe. As a specialist distributor, SIG plays a critical role in the construction supply chain, bringing value to its customer base across major European markets.
Companies tend to look for specialist rebate management software when they reach a point where their core business systems are proven to be inadequate.
This particularly affects builders' merchants, plumbing distributors, electrical distributors, HVAC distributors and others who operate in the building materials industry. These businesses usually have to deal with a large number of complex trading agreements involving rebates, special pricing agreements, retrospective discounts, over-riders and more across many thousands of stock items.
If you’re a builders merchant in 2018 you’ll know how essential it is to ensure every penny counts in terms of your bottom line. So, it’s even more crucial than ever that you don’t miss out on any of the, often significant, sums due to you through rebates.
Indeed, profitability for suppliers to the building industry is often very closely dependent on the amount of rebate they can negotiate and claim and many businesses across this sector tell us that the sheer volume of categories and the complexity of rebate deals means that administering rebate claims is a mission critical element of their business which can be the difference between a decent year and a great one.
100% of our customers have identified previously missed rebate claims after implementing our Dealtrack system and we have even seen cases of missed rebate claims amounting to 7 or even 8 figure sums.
Enable has formed the Building Materials Industry Advisory Group to inform our development team as we continue to create software products to solve industry-wide challenges that are not easily addressed by existing IT solutions.
The early versions of Enable’s flagship software product, DealTrack, primarily focused on allowing companies to manage supplier rebates.
The software is aimed at those companies in which rebate income makes up a significant proportion of profit, and it provides functionality for both finance and commercial teams – enabling deals to be accurately systemised and visible to all relevant parties, and rebates calculated at a very granular level of accuracy.
This building materials supplier was struggling to reconcile rebate information in their unwieldy spreadsheet-based system. They also had an issue around extracting detailed and summary data across all branches and categories prior to the negotiation.
They felt that they needed to gain control over rebate income and at the same time find a solution that would help them to improve their supplier negotiations.
With insufficient accurate, consolidated information at their fingertips, the procurement team could only negotiate on price. They knew that by understanding the projected volumes and product mixes required at a branch / product level they could include delivery, quality and other measures into their negotiations.
This business had used a bespoke system to manage rebate earnings for some time, but rebates were calculated at a very high level and were based on data provided by suppliers rather than their own data.
They reviewed the situation and estimated that by making calculations at a more granular level of detail, they could significantly increase the level of rebate claims within the existing deal structures.
This building supplies company has over 50 branches and is growing. They recognised that having smooth business processes would be an essential foundation for their growth plans, and whilst most parts of the business had been systemised, the area of rebate management remained an anomaly.
They were using spreadsheets because their core ERP system (Kerridge) did not support their requirements.
They approached Enable to discuss the suitability of DealTrack to their needs and were keen to discover whether a quick return on investment was possible.
This business manages over 1m stocked items, the majority of which have some kind of associated rebate deal. Within the first 12 months of operation they recognised a 200% return on their investment in DealTrack software.
They had previously built a rebates module as part of their bespoke financial system. However, whilst this had been built to specification, over time it lacked the flexibility to manage every type of deal.