In today's world, effective rebate management relies heavily on fostering cross-functional collaboration in the workplace. This approach entails bringing together individuals from diverse job functions, such as finance, sales, marketing or procurement to work cohesively towards a shared objective.
The goal of cross-functional collaboration is to leverage collective expertise to address challenges and implement process improvements. In rebate management, one of the most difficult obstacles is the transfer of financial information and rebate agreements between different departments and teams. Our State of Volume Rebates Report 2022 revealed that only 44% of purchasing and senior management are familiar with their rebate programs.
In this blog, we look at where cross-functional collaboration plays a crucial role in facilitating continuous improvement.
- Reduce data silos
The issue of silos persists in rebate management, as departments or teams often store data in separate locations, creating data silos that restrict access to information for other groups within the organization. These data silos often take the form of numerous spreadsheets.
To execute rebate processes efficiently, finance, procurement, sales teams and other departments require access to a significant amount of information. However, data silos impede their ability to access the necessary information, causing delays and inefficiencies. To mitigate this challenge, organizations must implement strategies that foster cross-functional collaboration that encourages the sharing of information across different departments and teams.
- Boost rebate performance
The act of sharing information about rebate programs within an organization can yield significant benefits. By providing more transparency around the program's structure and requirements, teams can better understand what actions are required to achieve specific goals.
Additionally, by tracking performance over time, rebate teams can identify trends and make data-driven decisions. For instance, if a supplier consistently falls just shy of a particular rebate threshold, the team might consider offering incentives to encourage the supplier to increase their purchases and reach that threshold.
- Close deals faster and more efficiently
Companies that fail to effectively manage their rebate agreements risk losing out on opportunities to increase their value and revenue. Sales and procurement teams are two important players involved in the negotiation of deals. While sales teams concentrate on closing the deal, procurement teams focus on the deal itself.
To ensure that negotiations are concluded efficiently, both teams need to collaborate. This approach enables all parties to track the progress of the contract negotiation stage by stage. It also allows for quick identification of what requires approval and what has been mutually agreed upon.
- Prevent late payments to suppliers
For procurement to establish successful strategic relationships, it is critical to ensure that suppliers are satisfied. However, operational issues often disrupt these relationships, with late payment being the most significant contributor.
If finance is deliberately prolonging payment times, procurement can identify which suppliers can handle the delay and advise finance accordingly. Alternatively, if late payment is due to administrative errors such as missing purchase order numbers or inaccurate master data, teams should consider implementing rebate management software to prevent such issues from arising. By doing so, procurement can maintain a positive relationship with suppliers and enhance the success of their strategic partnerships.
- Ensure rebate goals and objectives are met
When cross-functional teams collaborate effectively, they can achieve much more significant business outcomes than when they operate independently. Unfortunately, many organizations still struggle with this issue. Our research reveals that as many as 25% of distributors are unaware of how their rebate goals are measured, indicating a lack of coordination and communication between teams.
When teams are strategically aligned and grasp the overall objectives, they become more motivated and willing to collaborate. They can observe how their work impacts other departments and vice versa, resulting in increased productivity and a greater focus on achieving the end goal.
- Maintain trust
To establish a culture of trust and cooperation that lasts, it is essential to provide all teams with identical deal information, enable them to access the same viewpoints and understanding and then grant them the authority to decide how to progress as a unified entity. However, achieving this requires the synchronization of teams across different functions and a single source of truth.
Cross-Functional Teams Thrive with Enable
Cross-functional teams thrive when they have a central space to communicate and track their collective rebate programs and deals. The idea is to have a single source of truth where:
- Real-time information is visible to all stakeholders
- Messages and comments can be exchanged without sifting through a chain of emails
- Key person dependency is reduced
- Monitor user activity helping you to keep track of agreements and key dates
- Access the latest version of a contract
- Everyone can work from the same set of rebate data
Get in touch with us to witness a demo of Enable's collaborator if you're seeking to enhance your team's internal collaboration and establish better alignment.