Rebate management system “delivers value at every level” for XLVets

Rebate management system “delivers value at every level” for XLVets

Posted by David Hunt on 03-Feb-2016 16:20:00

Founded in 2005, XLVets is one of the UK's leading veterinary groups sharing experience, knowledge and skills whilst providing economies of scale for member practices. On behalf of its members, the group establishes deals for pharmaceutical supplies and accessories with manufacturers and wholesalers. It also works alongside academic bodies and commercial research and manufacturing companies to place its members at the forefront of veterinary science.

Group statistics:

  • 49 members

  • Over 150 premises

  • More than 500 vets

The business challenge

XLVets required a rebate management system that could provide its members with accurate and timely purchasing, pricing and rebate earnings information, removing the overhead and duplication of each member calculating the same information themselves.

The supplier rebate management solution had to be flexible enough to accommodate the group's growing list of member practices, and sophisticated enough to incorporate wholesaler discount deals and manufacturer rebate deals, with the added complication of many deals being based on aggregated group turnover.

The solution

In order to address its specific requirements, XLVets chose to engage with DealTrack who conducted a detailed analysis of the group's business processes and trading terms and defined a solution to fit.

As a result of this analysis, DealTrack was commissioned to build XLVets “Purchases Information System”.

"By understanding our business model, our aims and objectives, the team has provided a system that truly delivers value at every level".

On behalf of each member, the solution calculates net and net-net prices, purchase volumes and values, and rebate earnings. These calculations are based on invoice transaction information from wholesalers and rebate deal parameters from manufacturers.

The results are published seamlessly to member practices, and the rebate management system also provides a margin analysis tool that allows practices to see the net-net margin for a selected product.

The results

XLVets' members now have increased visibility of accurate, up-to-date net-net pricing and rebate earnings, which improves their financial control and supports their judgement of resale prices in order to be highly competitive whilst remaining profitable.

Improved visibility of purchases and rebates across the member practices has also benefited XLVets as a group, providing it with information that empowers its negotiations with manufacturers and allows it to deliver ever-increasing value to its members.

In the client's words:

“It is an incredibly comprehensive system and as such it enables us to deliver against our mandate, both as a group and to our individual members. The solution has not only delivered against our brief but, by understanding our business model, our aims and objectives, the team has provided a system that truly delivers value at every level”.

— Andrew Curwen, CEO of XLVets.

Conclusion

The “Purchases Information System” gives XLVets a better and more efficient approach to working in partnership with members, wholesalers and manufacturers, with all parties gaining from the improved business relationship. In addition, XLVets members are able to better judge resale prices to ensure profitability on all sales.

Andrew Curwen, CEO of XLVets, was a guest speaker at a DealTrack webinar. To listen to Andrew and DealTrack’s rebate management experts as they discussed,  'How to increase profit and improve cash flow with an automated rebate management solution’, click below.

DealTrack Video How to increase profit and cash flow with automated rebate management

Topics: Client Stories, Industry Sector: Buying Groups, Rebate Management System