5 ways to mitigate supply chain risks with rebate management software
Today’s global and fast-moving supply chains are getting more and more complex. Therefore, they are almost inevitably subject to greater disruption and risk. In the aftermath of the recent global pandemic, protecting supply chains is more important than ever.
Some organizations were better prepared than others to mitigate the impact of COVID-19, due to implementing supply chain risk management and business continuity strategies, or by diversifying their supply chains geographically. Others were left scrambling for an effective response. According to a report by accounting firm KPMG LLP, 90% of Fortune 1000 companies say they suffered supply chain disruptions.
As a result, organizations are questioning how to assess, manage, and reduce these supply chain risks and prepare their supply chains accordingly. One way to increase profits, form more strategic partnerships, and access more accurate data is by implementing a rebate management system. The software is designed to give you control over even the most complicated of supply chains by automating processes and increasing visibility into your trading partners and agreements.
Below, we explain five ways in which rebate management software mitigates supply chain risk.
1. Accessible and trustworthy contracts
At the very beginning of a supplier relationship, getting them under contract is a key step to prevent the injection of supply chain risk into an organization. However, research shows that more than 10% of contracts are lost or misplaced. Obviously, it’s hard to monitor a supplier’s performance when you can’t even find the contract.
Moreover, even contracts that are not lost are often not monitored properly. For example, an organization sometimes has numerous contracts in place with one supplier, but if they are not kept together or are not known to an employee who is working on the deal, suppliers can be overpaid or judged on the wrong deal criteria.
With rebate management software, all your contracts are uploaded and digitally stored in a central repository. This means no more lost or misplaced contracts. The right employee can find any contract with a quick search and discuss all the finer details, keeping a secure audit trail of any conversations. Therefore, disputes are avoided further down the line and trust in your relationships improves.
2. Supplier collaboration
To handle supply chain risks and keep supply chains operating efficiently, organizations need to collaborate more effectively with their internal teams, external suppliers, and trading partners to keep all deals in check. However, for supply chains relying on manual processes, fragmented systems, and a lack of real-time information sharing, communication and coordination limitations make collaboration difficult to achieve. In fact, 47% of supplier collaborations fail.
That’s why a collaboration platform is needed to assist with the mutual exchange of information. With both parties being able to report problems, they can then work together to ensure that any supply chain risks are eliminated. Collaboration promotes trust, responsiveness, and a sense of shared responsibility that ultimately strengthens supplier relationships and business outcomes.
3. Eliminate human error
Human error is a leading cause of supply chain risks for many businesses. Even the most skilled employees are prone to the occasional slip-up, which can impact revenue. Alternatively, it could even be down to the tools they use; it is reported that nearly 9 out of 10 spreadsheets (88%) contain errors. This is not good news for finance teams who need to accurately represent their deals.
Automation can help reduce human involvement in repetitive tasks, thereby reducing the potential for human error. With all your key information stored on one platform, repetitive everyday tasks can be taken over with precision and accuracy. Your team can then focus on driving important initiatives and not have to worry about the risks associated with human error.
4. Single source of data
Supply chains have an enormous amount of data to leverage, which is critical for organizations that want to better understand their business challenges and opportunities. However, data can rapidly become stagnant and inaccurate, resulting in poor insights which can further increase supply chain risks and prevent supply chain stakeholders from taking timely action. A report from the Economist Intelligence Unit (EIU) found that 37% percent of companies reported that their visibility had been impaired by internal siloes, a lack of data-driven information, and an over-reliance on their own internal data.
Rebate management systems can help minimize supply chain risk by allowing your organization and your suppliers to import all your data, therefore providing a single source of data. With data-backed insights, your organization can make more informed decisions that drive deal performance.
5. Keep a close eye on how your deals are performing
Pricing is constantly changing throughout the supply chain, which means you need to keep your finger on the pulse to get the best deal possible. Constant performance analysis can help your organization identify gaps and areas of strength, as well as allow for more effective supply chain risk assessment.
Rebate management software enables you to keep an eye on your deals by showing you opportunities to reach the next rebate tier or telling you where your deals could be at risk. All of this can be done with the Enable Watchlist App and suite of reporting capabilities.
Start reducing supply chain risks today
Mitigating supply chain risks is a big task, but you don’t have to tackle it alone. With increased visibility and collaboration, you can predict and reduce supply chain risks that could potentially affect your product availability, revenue generation, and even bring deal negotiations to a halt.
It’s important to know how to protect your organization from supply chain risks while enhancing the company’s ability to thrive. Moving your rebate management to the cloud could be one of the best ways to reduce any concerns, enabling transparency and increased operational efficiency for all parties involved.