3 Ways Rebate Management Software Can Help Increase your Profits
For any business to be successful, it’s vital that company profits increase, enabling continued success and to provide opportunities for growth and development. However, increasing company profits isn’t always as easy as it may seem. Once all the necessary expenses and costs have been paid out, its then essential enough sales have been made just to break even, let alone have anything extra to realize a company’s ambitions.
Although this can be extremely challenging at times, it’s also possible to increase company profits by spotting opportunities. Collecting rebate agreements on time, consistently and accurately could be one of these opportunities, which can be actioned with effective rebate management. This is the process of recording supplier agreements, tracking purchases and sales against those agreements, and managing accruals and rebate claims in a timely manner.
All of which can have a positive effect on company profits unlike traditional methods of rebate management that can eventually lead to missed rebates and poor accrual accounting.
For example, if you manage procurement contracts with complex supplier rebates, then you may have reached the point where your current ERP system or countless spreadsheets don’t provide the functionality you need. This is because they do not cope with complex vendor rebates very well and we have found that in a very complex trading environment the standard module is incapable of modelling all the product / price / branch / margin combinations that might be required. This is where a rebate management system comes in.
What is a rebate management system?
A rebate management system is a software solution designed to help businesses manage and streamline their rebate programs effectively. Rebates are incentives offered by manufacturers, distributors, or suppliers to encourage customers to purchase their products. These incentives are usually in the form of cash back, discounts, or other rewards, and they serve as a way to boost sales and customer loyalty. A rebate management system automates and simplifies the entire process of creating, tracking, and managing rebate programs. It provides a centralized platform for companies to design, implement, and monitor various types of rebate programs.
3 ways that Enable can help to increase your company profits:
1. Control and visibility
Every organization strives to gain complete control and visibility over its deals. The more control it gains, the better are the chances of generating higher company profits. With Enable you can specifically take control of retrospective income from your suppliers, manage receivables for rebates, special pricing agreements, and much more. Enable handles the day-to-day control that is needed for accurate rebate processing.
By being able to model all trading agreements accurately and gather data from disparate business systems, Enable can tell you exactly what rebate to claim, when and from whom. The more money you can claim in a faster amount of the time, the more your company profits will soar.
2. Maintain compliance
Being systemized, with all the deals, transactions, rebates and margins details held within Enable, auditing is made easy. IFRS 15 is driving auditors to review not only the amounts that are accrued for rebate income, but the process behind the calculation. Enable provides a compliant solution, with complete transparency of all rebate earnings and detailed drill-downs into the supporting data and calculations, increasing company profits has never been easier.
3. Facilitate growth
Enable takes care of all the detailed information and business processes needed in order to facilitate business growth through optimized rebate management. This can be achieved in three ways:
- Giving buyers full visibility of the information on volumes, pricing and targets to negotiate smarter deals;
- Providing the user visibility and automated alerts, such as when a target is about to be reached or is at risk of being missed. This means that smarter decisions can be made when making recommendations at point of sale;
- No more guesswork in terms of the impact rebate could have on company profit margins, sales people have all the information they need to avoid providing too high a price and losing the deal or too low a price such that the company profit margin is adversely impacted.
Start the journey to increasing your company profits today
If your business doesn’t support rebate accounting fully, then the whole purpose behind creating deals involving rebates to increase company profits, is missed. Enable provides a structured, intelligent approach to rebate management, with advanced analytics which allow your business to manage complex trading agreements reliably and efficiently, minimizing risk and uncertainty.
Enable is already proven, with leading organizations around the world experiencing an increase in company profits. Take a look at our customer stories to find out more.