The COVID-19 pandemic caught companies and whole industries off guard, as they experienced dramatic and sudden changes in demand and revenue.
Enable Blog — Industry Sector: Wholesale Distribution
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.
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 typical trading relationship, we have three main parties: the manufacturer, distributor and the end user who is the customer. The relationship we are focusing on today is between the manufacturer vs distributor.
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.
The worldwide building materials sector is buoyant at the moment. According to StrategyR the global construction materials market is expected to grow to $US1.1 trillion by 2020. The biggest growth area is expected to be AsiaPac, closely followed by the US.
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.
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.