Healthy profits at DCS using DealTrack Rebate Management Software

Rebate Managment System helps DCS to improve profitability

Posted by Andrew Butt on 18/04/16 09:22

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.

DCS also owns and manufactures the international Enliven range of health and beauty products, and has a new contract manufacturing plant in Stratford-upon-Avon.

 Company statistics:

  • £186 million annual sales
  • 320 employees
  • 50,000 retailers supplied through 300 wholesale delivery points
  • Exporting to 70 countries worldwide

THE BUSINESS CHALLENGE

As the UK's largest distributor of toiletries and household products, carefully negotiated rebates and retrospective discounts play a crucial role in the successful and profitable running of DCS Group.

“INVOICES ARE AUTOMATICALLY GENERATED AND READY TO EMAIL OUT TO SUPPLIERS THE FOLLOWING MORNING”

But as the success and size of the company has grown so has the difficulty in keeping track of the many complex and varied deals that attract retrospective payment across a high number of product lines and customers.

Using spreadsheets to track all these deals posed an increasing risk of lost revenue and disruption to valued suppliers.

THE SOLUTION

DCS needed to find a solution that could automate the generation of invoices to suppliers for the retrospective payments (along with supporting transaction information) and ensure the maximum possible income from each retrospective discount agreement.

As DCS' core business system was unable to handle the complexity of these retrospective discounts, Enable's experience made them the natural choice to create a solution to address this vital area.

The subsequent DealTrack solution provided DCS with automated billing of all retrospective payment claims, as well as verification and approval of profit margins across all sales order lines based on the agreed retrospective discounts in place to support those sales.

THE RESULTS

The outcome of implementing the DealTrack rebate management system has been significant, measurable and wide-ranging.

Key statistics:

  • 5,000 invoices with a total eight figure value raised in one year;
  • More than £1 million in accelerated cash flow due to time saved in data extraction and quicker invoice creation;
  • Tens of £1,000s saved in bank interest each year;
  • As much as 10 times the opportunities for DCS to buy and turnover stock each year;
  • Administration time reduced by two weeks out of every month.

IN THE CLIENT'S WORDS

“Automation of the system has certainly catapulted DCS into a league of its own when it comes to rebates. The new DealTrack system provides profitability reporting to ensure complete transparency across the company and, with a warning model, any deals sold below cost are flagged up immediately. Everything is checked by the system eliminating risk and, as it updates overnight, invoices are automatically generated and ready to email out to suppliers the following morning.”

“The flexibility of the system is such that it will also continue to grow with the company as numerous variables can be added over time.”

— Denys Shortt OBE - Founder and CEO at DCS Group (UK) Ltd

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Topics: Client Stories, Industry Sector: Wholesale Distribution