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The Deal Economy

Our products drive profitable growth with your trading partners. We’re rethinking the way the deal economy works.

Supplier collaboration in the building materials sector

The Deal EconomyDecember 12, 2018

We learn about collaboration from an early age. As children we quickly learn that we need to collaborate with teachers, classmates and team players in order to be successful. "There's no 'i' in 'team' is a common mantra in sports and work teams. And "supply chain collaboration" has been a hot topic for decades. Despite that, there are very few systems that enable wholesale distribution companies and their suppliers in the building materials sector to truly collaborate on their trade agreements....Continue reading

Managing special pricing agreements is linked to higher margins

The Deal EconomyDecember 4, 2018

SPAs (Special Pricing Agreements) are a common vendor program in many industry sectors. The program gives a special product discount for verified sales to an ultra-competitive event where in-stock discounts can’t secure the order. SPAs trace their roots back to the 1970’s but have shown significant growth in the past decade. As B2B e-commerce now counts for an estimated 15% of all orders and grows at 8% per year, SPAs have grown significantly as price and availability are easily and quickly rese...Continue reading

Seven key elements of successful trade negotiations

The Deal EconomyNovember 27, 2018

The phrase win-win is probably over-used, but I am going to use it anyway to describe the situation where both parties come out of a negotiation feeling like they have won. Let’s be honest. If you think you won and the other party (your supplier or your customer) feels they lost, then it’s not really a good situation. Price is important, but (particularly in industries like building materials distributors and grocery retailers where margins are tight) time to market, supply chain reliability, in...Continue reading

From counting to measuring and managing vendor funds

The Deal EconomyNovember 20, 2018

Vendor monies that support reseller sales are big business. US-based research conducted in October 2018 estimates that, at top performance levels, distributors, dealers, and retailers use $600+ Billion (USD) in vendor funds. Projections from the EU find that approximately €500 Billion (EU) in vendor funds are similarly spent. These funds are found as four primary types including: SPAs — Special Pricing Allowances used by sales to compete with a competitor’s special pricing to a customer MDF --...Continue reading

SIG selects Enable’s DealTrack rebate management software

The Deal EconomyNovember 13, 2018

SIG is a leading European provider of specialist building materials, with close to £3bn of annual revenues and around 9,000 employees across the UK, Ireland and Mainland Europe. As a specialist distributor, SIG plays a critical role in the construction supply chain, bringing value to its customer base across major European markets. SIG enjoys strong partnerships with many of the world’s leading producers of building materials. It has purchasing arrangements with many suppliers, which include a...Continue reading

Managing SPAs, ship & debit, claimbacks, MDFs and more

The Deal EconomyNovember 7, 2018

Rebates, SPAs, claim-backs, contract support are all very similar and at the same time quite different to each other. In essence they are all terms for the money that wholesalers claim from suppliers and manufacturers for selling their products. Some of the key differences lie in how the agreements are formed, whether goods are actually ever handled by the wholesaler, and how the claims are made. Collectively, they are sometimes referred to as “vendor monies”. It is estimated that, annually, the...Continue reading

Buyers’ guide to rebate program management systems

The Deal EconomyOctober 29, 2018

Whilst many core business systems have some functionality to help monitor trading agreements that involve vendor rebates, most have neither the flexibility nor the extensive range of functionality that is needed to support the increasingly complex world of rebate management. For many, that lack of functionality has resulted in missed rebates and poor accrual accounting. But worse than that, if your business systems don’t support rebate management fully, then the whole purpose behind creating dea...Continue reading

Best practice — systematising rebate & special pricing deals

The Deal EconomyOctober 22, 2018

In this blog, we are going to focus on the system requirements for configuring, storing, monitoring, reviewing and operating rebate deals or special pricing agreements. For the sake of efficiency and audit tracking, and to avoid unnecessary disputes, all elements of pricing agreements should be stored in one place. A cloud based solution is ideal for multi-centred operations. Accessible for all The software should provide a central repository that (with appropriate security settings) is accessi...Continue reading

Why wholesalers should invest in a rebate management system

The Deal EconomyOctober 17, 2018

Companies tend to look for specialist rebate management software when they reach a point where their core business systems are proven to be inadequate. This particularly affects builders' merchants, plumbing distributors, electrical distributors, HVAC distributors and others who operate in the building materials industry. These businesses usually have to deal with a large number of complex trading agreements involving rebates, special pricing agreements, retrospective discounts, over-riders and...Continue reading

Twelve things your rebate management system must do

The Deal EconomyOctober 11, 2018

We have a buyers' guide that outlines everything you should look for in a Rebate Management System, but I wanted to outline my top 12 features in this blog. 1. Complete solution The system should cover all aspects of your trading relationships from contract to claim. 2. Integration to anything Systems consolidation with any kind of system should be built in — be that ERP integration, EDI, CSV or other types of transfer. A rebate management system is data hungry, requiring information to be pass...Continue reading

How distributors manage “ship and debit” rebate agreements

The Deal EconomyOctober 3, 2018

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 losing all of their margin. 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 deb...Continue reading

Four things to stop doing in order to maximise your rebate earnings

The Deal EconomySeptember 27, 2018

Whilst working with a number of organisations across industry sectors such as building materials, buying groups and wholesale and distribution, we have seen a large variety of very complex supplier rebates and trading agreements. These very often involve incredibly complicated performance-based calculations with seemingly endless permutations, and on top of that agreements are subject to periodic review and change. In the building materials sector for example, there are further complications wh...Continue reading

Making every penny count — suppliers to the building industry

The Deal EconomySeptember 20, 2018

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 comple...Continue reading

Ten reasons rebate accountants fail to claim 100% of rebate due

The Deal EconomySeptember 6, 2018

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. Some ERP systems have functionality for recording rebate agreements, but often lack the granular level of functionality needed to carry out detailed matching of actual purchase...Continue reading

Managing complex trading agreements — seven keys to success

The Deal EconomySeptember 4, 2018

With increasing global competition, ever-more complex trading agreements are being created. Effective management and control of complex trading agreements that include supplier rebates is notoriously difficult. Most standard accounting and purchasing software packages will not cope with the variety and complexity of pricing strategies and rebate agreements. But a solution that is disjointed or based on spreadsheets introduces the possibility of missing data, human error and inaccurate reporting....Continue reading

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