Rebates are prevalent in many industries because they can have a significant impact on a business’s bottom-line. A buyer agrees to purchase a certain volume, or value of a seller’s goods. Once the purchase has been made, the seller refunds a proportion of the price they’ve paid. But although they sound manageable, we have found that 4% of potential rebate revenue typically goes unclaimed which can mean many industries are missing out on hundreds of thousands of dollars each year.
DealTrack Blog — Industry Sector: Wholesale Distribution
As wholesale electronics gets more competitive, distributors must find ways to grow revenues and protect margin. Maximizing the value of supplier agreements should be a priority.
In a challenging environment, smart electrical distributors are finding new ways to drive profitable growth—not least, taking closer control of key trading agreements.
With over a thousand branches and hundreds of thousands of stock items, this business had a huge issue with managing rebates. Everything was being managed on spreadsheets, and they experienced many of the usual issues such as version control and human error.
They commissioned a firm of consultants to review their options and invited several software companies to tender for a solution.
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.
For spring / early summer we have a series of three webinars planned to share more detail about our 3 step approach to profitable growth through:
Mastering rebate accounting and maximising profit from rebate deals;
Being prepared for and executing on smarter supplier negotiations;
Collaborating with suppliers for mutually profitable growth.
Topics: Rebate Management, Procurement Excellence, Rebate Management & Compliance, Rebate Accounting, Industry Sector: Building Materials, Industry Sector: Wholesale Distribution, Rebate Management & Growth, Industry Sector: Retail, Industry Sector: Buying Groups, Rebate Management System
DCS Group (UK) is one of Europe's largest distributors of health and beauty products. Founded in 1994, the company has experienced phenomenal growth under the entrepreneurial leadership of Denys Shortt OBE. The company employs 320 and handles sales and distribution into selected markets for globally recognised brands such as Gillette, Colgate, P&G, Unilever and SC Johnson.
Landmark Wholesale Buying Group is a major buying group that provides a centralised trading and marketing operation on behalf of its members — leading independent wholesalers. The group represents members throughout the UK and has a turnover of £1.8 billion. One of their key roles is to organise the complex process of managing member overrider payments.
Enable is delighted to share the success story of one of its key partner clients by highlighting a remarkable period of recognition for distributor DCS Europe.
The company has been named in the Sunday Times Top Track 250 league table of Britain's leading mid-market private companies with the biggest sales. DCS ranked at number 220 with sales of £148.4 million.
The business was also given prominent place in the Design Council's special report Leading Business by Design, which sought to explore the current and potential role of design in business and education in collaboration with Warwick Business School.