Rebate management blog - Page 13 - Enable

Many industries around the world have complex pricing practices. These tend to become more and more complex as the industry becomes more and more competitive. Many creative programs have been created by businesses and their trading partners in order to provide maximum benefit to both parties involved and improve their competitiveness in the market place.

One solution to allow for trading partners to become more competitive and gain market share is back-end rebate or BECs. There are many examples of variables in these agreements, with some based on growth over a certain specified period, volume of product, value of product, certain locations or even a specific SKUs!

Sadly, we don’t have time to cover them all here, but examples of rebate agreements have been covered in detail in another of our blog articles.

6 min read

How distributors manage ‘ship and debit’ rebate agreements

What are ‘ship and debit’ agreements?

Ship and debit is the term for an agreement between suppliers and distributors where specific products are distributed (shipped) to customers at a lower price than usual. The difference in price is then claimed (debited) from the supplier to protect distributor margins.

A ship and debit agreement enables suppliers to sell their goods at a uniform price, while distributors can react to local market conditions and lower the price they use to sell to customers without the risk of losing their profit margin. Once the sale is made, distributors can debit the supplier who usually credit the amount back as a rebate.

An example

Ship and debit is widely used in the technology and electrical supplies sector. If an OEM sells laptops at $1000 and has agreed a $100 rebate for every unit sold, the distributor will pay $1000 per laptop to bring them into stock, and for every unit shipped, they will debit the OEM $100. In other words, they will claim $100 back from their supplier.

7 min read

Firstly, if you’re reading this blog you will most likely to be familiar with what an ERP system (enterprise resource planning) is, but as a reminder it is a type of software that manages and integrates a company’s financials, supply chain, operations, reporting, manufacturing, and human resource activities into one system. Examples of ERP systems include NetSuite, Oracle, SAP, SAGE plus many more. Many ERP systems already have a way of recording contract information and a vendor rebate module...Continue reading

August’s update introduces some exciting new concepts including simplified scheme PDF branding, copying proposals and the ability to sign off schemes on other users’ behalf. Enable is committed to ensuring our software is constantly being updated and improved. To achieve this, we release a new DealTrack update every six weeks.

Each DealTrack update is carefully constructed from a combination of invaluable client feedback, research on current market demands and technical recommendations from our experienced development team. This means we learn from any past problems, look ahead to future trends and make the most of the latest technological advancements.

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On Saturday, July 13, our employees and their partners celebrated another year of success and innovation at the Home Guard Club in Tiddington for our third annual summer party!

Summer parties have become increasingly popular for companies over the years, with the huge appeal giving employees the opportunity to bond and help people from other departments get to know each other a lot better. These types of get-togethers are also an excellent opportunity to give our exceptionally loyal and motivated employees recognition for the hard work that they are doing and rewarding them for it. Retention is something that Enable prides itself on as we expect to grow to over 100 employees by the end of 2020.

The social group

One of Enable’s top priorities is to provide a positive environment for all of our employees to work in — this is reflected in our excellent Glassdoor employee reviews.

3 min read

At Enable, we carry out rigorous testing to ensure that we achieve quality throughout our applications. We use manual testing, particularly at the later stages of development, to observe the functional behavior and full user experience. However, automated tests also play a key role when building a complex application, from simply verifying that behavior meets the specification to reducing costs and undesired bugs throughout an application’s life.

While automated testing is crucial to ensuring quality in any software product, it is often harder to immediately appreciate from the outside. Provided the software is meeting the current specification why should our clients care how we got there?

11 min read

In our experience with businesses managing complex rebate agreements, we have come across multiple different styles of rebate deals. Some of these deals are rather self-explanatory, such as a fixed monetary amount or a fixed percentage of total turnover over the term of the deal.

However, as the area of rebate grew, rebate agreements became more complex and specific in order to provide maximum benefit for everyone involved. Why get a low rebate rate on all products (some of which you may never stock!) when you can negotiate a higher rebate rate on one of your most traded products?

Incentive rebates explained

What are they?

Incentive rebates are used to encourage purchases across a specified group of products. The incentive offered by the manufacturer or supplier means that the more you trade with this partner over the course of the deal, the better the rebate rates you receive. This helps to promote loyalty with certain trading partners and protects the supplier from the risk of their trading partners engaging with the competitors about similar products.

6 min read

There are two sides to the customer rebate story: the customers’ side where, historically, retailers and distributors have not always been paid the full value of the rebates they should have received; and the manufacturers’ side (those who offer the incentives in the first place). When the old enmities are laid to rest, though, customer rebates can be the best thing since sliced bread for customer success. Customer rebates have a bad reputation In the past, those giving away rebates were accus...Continue reading