DealTrack Blog — Rebate Management

Managing SPAs, ship & debit, claimbacks, MDFs and more

Posted by Andrew Butt on November 7, 2018 09:22:42

Rebates, SPAs, claim-backs, contract support are all very similar and at the same time quite different to each other. In essence they are all terms for the money that wholesalers claim from suppliers and manufacturers for selling their products. Some of the key differences lie in how the agreements are formed, whether goods are actually ever handled by the wholesaler, and how the claims are made.

Collectively, they are sometimes referred to as “vendor monies”. It is estimated that, annually, these amount to $600bn in North America and perhaps as much as $500bn in Europe.

In a world where margins are tight, wholesale distributors across nearly 50 sectors rely so much on vendor monies that their absence would be a serious dent in their profit margin.

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Topics: Rebate Management

Buyers’ guide to rebate program management systems

Posted by Andrew Butt on October 29, 2018 16:01:21

Whilst many core business systems have some functionality to help monitor trading agreements that involve vendor rebates, most have neither the flexibility nor the extensive range of functionality that is needed to support the increasingly complex world of rebate management.

For many, that lack of functionality has resulted in missed rebates and poor accrual accounting.

But worse than that, if your business systems don’t support rebate management fully, then the whole purpose behind creating deals involving rebates – a means to influence business growth – is missed.

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Topics: Rebate Management, Rebate Accounting, Rebate Management System

Why wholesalers should invest in a rebate management system

Posted by Andrew Butt on October 17, 2018 16:07:29

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.

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Topics: Rebate Management, Industry Sector: Building Materials, Rebate Management System

4 things to stop doing in order to maximise your rebate earnings

Posted by Andrew Butt on September 27, 2018 17:22:05

Whilst working with a number of organisations across industry sectors such as building materials, buying groups and wholesale and distribution, we have seen a large variety of very complex supplier rebates and trading agreements.  These very often involve incredibly complicated performance-based calculations with seemingly endless permutations, and on top of that agreements are subject to periodic review and change.

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Topics: Rebate Management

Making every penny count: suppliers to the building industry

Posted by Andrew Butt on September 20, 2018 14:26:19

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.

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Topics: Rebate Management, Rebate Accounting, Industry Sector: Building Materials, Rebate Management System

10 reasons rebate accountants fail to claim 100% of rebate due

Posted by Andrew Butt on September 6, 2018 10:42:00

Failing to claim 100% of rebate due can have a large negative impact on the bottom line for businesses in industries where rebate agreements are commonplace.  Finding out why that happens and how to stop missing vendor rebate claims is at the forefront of the minds of rebate accountants and financial leads the world over.

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Topics: Rebate Management, Rebate Accounting, Rebate Management System

Managing complex trading agreements — 7 keys to success

Posted by Andrew Butt on September 4, 2018 11:07:00

With increasing global competition, ever-more complex trading agreements are being created.

Effective management and control of complex trading agreements that include supplier rebates is notoriously difficult. Most standard accounting and purchasing software packages will not cope with the variety and complexity of pricing strategies and rebate agreements.

But a solution that is disjointed or based on spreadsheets introduces the possibility of missing data, human error and inaccurate reporting.

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Topics: Rebate Management

How to choose a contract management system

Posted by Andrew Butt on June 18, 2018 10:27:34

The decision to choose a contract management system is often driven by a need to model complex purchasing agreements that cannot be met using spreadsheets or existing ERP systems.

The first decision to make is about the type of contract management system that you need.

Do you operate in an environment where complex discounts and rebates are prevalent?  If the answer is “yes” then you may actually need a Rebate Management System.

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Topics: Rebate Management, Contract Management

7 common problems with accounting for rebates

Posted by Andrew Butt on June 15, 2018 14:23:00

As experts in rebate management, we have come across (and fixed) many problems with rebate management processes.  Here are the 7 most common things that businesses need to fix in order to improve profitability and growth.

1. Problems capturing rebate agreements in core business systems

Companies tend to look for a specialist solution to rebate management when they reach a point where their core business systems are proven to be inadequate.  We have seen several scenarios:

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Topics: Rebate Management, IFRS 15

5 ways to improve your rebate management system

Posted by Andrew Butt on June 13, 2018 11:31:15

Due to the intricacies of most supplier trade agreements, rebate accounting is a notoriously complex operation. Many organisations still manage their rebates with spreadsheets or rely on their suppliers to make the calculations, despite this leaving them at high risk of errors and omissions that could lack audit compliance and lead to significant revenue loss.

To improve upon your current rebate management system, it’s necessary to take full control of the rebate process and the difficulties that arise from trade agreements.

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Topics: Rebate Management