In the supply chain and the rebate world, you will often hear the terms supplier and vendor used interchangeably when supply chain roles and duties are discussed. Even here at Enable we sometimes call supplier rebates, vendor rebates. They both supply goods and services, but there are certain attributes that make each one a distinct term in the supply chain world, which we will discuss in more detail below.
DealTrack Blog — vendor rebates
Firstly, if you’re reading this blog you will most likely to be familiar with what an ERP system (enterprise resource planning) is, but as a reminder it is a type of software that manages and integrates a company’s financials, supply chain, operations, reporting, manufacturing, and human resource activities into one system. Examples of ERP systems include NetSuite, Oracle, SAP, SAGE plus many more.
Multiple vendor rebates which are very often complex in nature can have a significant impact on the effectiveness of financial and procurement teams, profit margins and company performance.
The challenge for many companies who manage rebates not only with hundreds of suppliers but also multiple divisions of single suppliers is being able to see the complete picture when negotiating vendor rebates.
In business, procurement and finance are two separate departments, working alongside one another within the organisation. The procurement function is about spending the money well and driving more for less from suppliers, and the finance team is all about keeping the balance sheet in check and driving profitability.
The report that Tesco is returning to profit is good news for the beleaguered retailer, who have been hit with fierce competition from discounters Aldi and Lidl and the fall out of the supplier income scandal, which according to a recent article in the Sunday Times is still being investigated by the serious fraud office.