Rebate management is the process of recording supplier agreements, tracking purchases and sales against those agreements, and managing accruals and rebate claims in a timely manner. This blog and animation cover:
What is rebate management?
What is a rebate management system?
What are the benefits of having a rebate management system?
What types of company use rebate management systems?
A rebate management system allows you to accurately systemise and automate every element of a rebate deal:
- Recording any type of pricing agreement eg “ship and debit” “retrospective tiered discount”
- Automating the tracking of purchases and sales against those deals
- Automated accruals recording
- Automatic invoicing / supplier debits
- Reporting, forecasting and information for commercial team negotiations
The benefits of a rebate management system include:
- Simplified business processes due to automation
- Minimised supplier disputes and faster resolution (where needed) through accurate audit trails
- Improved cash flow through more timely rebate claims
- Improved margin through accurate rebate and pricing calculations
- Automation drives up the productivity of your commercial team
- Improved profitability and growth through better supplier collaboration
Businesses gain significant ROI for a rebate management system if:
- Their profit margin includes a substantial amount of rebate claims and/or
- The annual value of rebates claimed exceeds the equivalent of $US5,000,000
For more information about potential ROI, review our guide What is the financial impact of implementing DealTrack?