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.

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?

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.

In our experience, many businesses that receive rebate revenue from suppliers, don't have the means to be able to check that it is correct. 

When people ask us about integration, the answer is simple.

DealTrack can accept data from anywhere so long as it is detailed enough.

We aren’t tied to any particular ERP systems or EDI providers, and we have over 20 years integration experience.

There probably isn’t a system or standard that we haven’t come across already.

Background

This business had used a bespoke system to manage rebate earnings for some time, but rebates were calculated at a very high level and were based on data provided by suppliers rather than their own data.

They reviewed the situation and estimated that by making calculations at a more granular level of detail, they could significantly increase the level of rebate claims within the existing deal structures.

If you manage procurement contracts with complex supplier rebates, then you may have reached the point where your current contract management system or ERP system doesn’t provide the functionality you need.  That’s where a rebate management system comes in.

Background

This business manages over 1m stocked items, the majority of which have some kind of associated rebate deal.  Within the first 12 months of operation they recognised a 200% return on their investment in DealTrack software.

They had previously built a rebates module as part of their bespoke financial system.  However, whilst this had been built to specification, over time it lacked the flexibility to manage every type of deal. 

For spring / early summer we have a series of three webinars planned to share more detail about our 3 step approach to profitable growth through:

1. mastering rebate accounting and maximising profit from rebate deals,

2. being prepared for and executing on smarter supplier negotiations,

3. collaborating with suppliers for mutually profitable growth.

Trading agreements involving rebates are prevalent in many industries such as building materials, lumber, HVAC, electrical distributors, buying groups of all types and other wholesale distribution businesses.

Rebates are used by suppliers to these industries to influence purchase decisions and drive profitable growth for both the supplier and the wholesaler.

Our Buyers' Guide is aimed at those wanting to choose a system to address the issues posed by managing rebate agreements.