Supplier management is a critical discipline, especially for "goods for resale" businesses. Improving the visibility of an organisation’s purchase related data and systematising the associated business processes are essential factors in optimising revenue, reducing costs and managing risk in this area.
Establishing agreements for retrospective rebate payments from suppliers is a commonplace commercial method adopted by buyers. It is often a notoriously complex area to track and control, frequently creating administrative headaches for companies and absorbing valuable resource in the process.
Often rebate income is the difference between losing money and making money on the bottom line, so tracking the agreements to ensure on-target earnings is of critical importance. Having invested time and effort in establishing potentially lucrative deals with suppliers, companies face the arduous task of executing these in order to gain maximum benefit from those deals.
This can be a time consuming and expensive process. Rebate agreements by nature can be complex, ever-changing and therefore difficult to track. The risk to a company of not realising 100% of the agreed rebate escalates as complexity increases.