The Customer

Operating for nearly 150 years, Conklin Metal Industries has a rich history. Established in 1874, their headquarters are located in Atlanta, Georgia. Conklin Metal has numerous locations and warehouse facilities dedicated to serving the HVAC sheet metal and duct fabrication industry.

Recently, we had the opportunity to speak with Brennan Hall, Director of Duct Fab Supplies and Air Distribution Products, at Conklin Metal. Hall has been with the company for approximately two years and has accumulated 15 years of experience in the industry. He sees himself as a vital link for the flow of information within the organization. In this role, he takes on the responsibility of making strategic decisions while collaborating with sales, accounting and data teams while also acting as a liaison between their different branches.

The Power of Buying Groups

For the past decade, Conklin Metal Industries has been an active member of Affiliated Distributors (AD). Hall describes AD as a stand-out as a buying group that goes above and beyond in offering its members the chance to fully delve into every aspect of their business and determine their desired direction.  

Hall says, “Being an AD member presents us with a tremendous opportunity for growth and has brought about strategic changes for our company. It has influenced our decisions regarding vendor partnerships and how we can best support the buying group. We actively seek opportunities to align ourselves with AD and its vendor partners in ways that make sense for our overall operations. By doing so, we can reduce unnecessary overhead and improve our management capabilities. Rebates play a crucial role in this process, and we anticipate their significance growing even further as we continue to progress as a company”.

Due to Conklin’s membership with AD, rebates have grown in importance for the company, resulting in both AD and non-AD programs, each with different levels of accessibility. Non-AD programs require significant amounts of email communication and a heavy lift when it comes to document management. AD programs, on the other hand, as managed through a dedicated portal. Users can log in and view all their existing programs. This portal also offers a comprehensive set of tools designed specifically to identify and manage these programs effectively.

Hall comments on the process, “The product committees at AD excel in negotiating rebate programs on behalf of us which greatly simplifies the process. When it comes to the non-AD side, however, you're essentially on your own, having to personally advocate and fight for those opportunities."

The Challenges

The Need for Stronger Financial Processes

The first hurdle to solve for Conklin Metal revolved around the organization of their existing rebate programs. They needed to identify where these rebate programs resided, who had authority over them and ensure stakeholders understood their content. Additionally, Conklin needed to evaluate whether they were maximizing their potential benefits and leveraging them appropriately.

Understanding the specifics of these programs became crucial: their terms, conditions and the extent to which they were effectively utilizing them. Hall says, “Our main objective was to establish a well-structured system that documents the details of our programs, their respective locations, and the process involved in managing them effectively.”

Missing Rebate Earnings

At Conklin, calculations were performed manually, and vendor rebates were frequently based on gut instincts. Both parties—Conklin and its vendors—would reach out to each other, trying to determine the current status, asking about numbers, purchase requirements, and what actions were needed. This process was disorganized and labor-intensive, particularly for the accounting team.  

Hall says, “We were definitely missing out on rebate dollars, both from purchasing and accounting, because things were slipping through the cracks or weren’t getting the attention they needed. Our purchasing decisions were far from accurate, and we’d scramble at the end of the year because we had no clear visibility into our position.”

Profit and Loss Statements

Conklin's various locations and branches operate with separate profit and loss (P&L) statements, which posed a significant challenge when it came to accounting and allocating vendor purchases to specific branches. This task required considerable effort and resources behind the scenes.

Rebecca May, CFO of Conklin Metal, strongly emphasized the need for a solution that would streamline this process and reduce the amount of manual work involved. She recognized the importance of finding a more efficient way to handle these tasks to optimize productivity and resource allocation. Thanks to Enable they now leverage a custom report that automatically allocates estimated rebates for each vendor to their respective branch locations and profit and loss statements, based on actual purchases.  

May comments, “Prior to implementing Enable, we had to perform this allocation manually for each vendor's rebate, which was incredibly time-consuming. One of the primary reasons we decided to adopt Enable was to streamline this process, as our P&L reports are organized by branch, and each branch receives a percentage of the rebate based on its purchases. Now, with just a click, we can generate these allocations automatically. This transformation has saved us 10 to 12 hours each month.”

Unable To Hit Rebate Targets

Conklin recognized the strategic disadvantages associated with spreadsheets, especially when it came to transferring data and comprehending the current status of their programs. Sifting through the details to uncover inaccuracies in those spreadsheets required significant effort. When Hall first started, it was a major blind spot in the business.  

Hall tells us, “We were working off spreadsheets and guessing what we needed to do in November and December to meet our targets. There just wasn’t much transparency in any part of the process, and it was tough. But now, the difference is night and day. We can’t imagine how we managed without Enable. The visibility and insights we have now are a huge win for us.”

Hall also recalled a moment when he had been working at Conklin for approximately three months, and his colleague Robbie called him, asking if they needed to make additional purchases to meet their requirements for a specific vendor.  

He says, “I found myself clueless about where to find the relevant programs and their status. Eventually, I received a series of spreadsheets, and as I opened them one by one, I was completely lost. It felt like I was staring at a foreign language, and I had no idea what Robbie had done with them. He tried to explain, but it was clear that I couldn't grasp it easily. It's interesting how, when you create numerous Excel sheets, you understand them because you're the one who made them, but for someone else, it can be incredibly confusing.”

One example that sticks with Hall is a tape vendor where they bought around $2 million worth of products from. He says “If we had spent just $250,000 more before the end of the year, we would’ve earned an extra 2% rebate. I knew about that one specifically, but beyond that, we had no idea where we stood. We didn’t know if we were missing targets by thousands, hundreds, or even millions of dollars. There was no real strategy in place; it was just, "Let’s keep buying and hope we hit the number."

ERP Conversions and Data Accuracy

In addition to their extensive use of spreadsheets, Conklin had recently undergone an ERP conversion. Before that, they had employed various data analytical tools. While the ERP conversion presented abundant data resources, it also brought about numerous uncertainties. Questions arose regarding the accuracy of the data received, the appropriateness of the information extracted and the correctness of calculations performed. With so many components involved in handling their data, there were multiple factors to consider and manage.

Hall says, “At Conklin, we were fortunate to have a data analyst named Randy Delp. When Randy and I began collaborating and delving into the intricacies of our work, things started falling into place. While I possessed a solid understanding of the business aspect, Randy brought his expertise in handling data.”

Together, Randy and Hall bridged the gap between business knowledge and data analysis and embarked on a journey to identify the problems that needed solving and determine the appropriate solutions. They carefully examined the data sources, ensuring they were accurate and aligned with their objectives. They also assessed the connection between their ERP system and the corresponding database to ensure seamless integration. This collaborative effort led them to embark on various initiatives, such as streamlining their ERP system and addressing areas that required improvement, including rebate management processes.

However, it has been a lengthy journey, spanning over two years, dedicated to sorting through and analyzing the data, determining what is relevant and what is not and establishing the appropriate destinations for different data sets. It required careful consideration to determine the best course of action and effectively utilize the gathered information.

The Software

A Strong Recommendation to Encourage Utilization

When Conklin decided to approach Enable, one of the driving factors was Mo Barsema, Industry Principal at Enable, who has significant expertise and background in this field. Before the HR/IT summit in July, Conklin CFO Rebecca May met with Barsema. Upon returning, May shared Barsema’s valuable insights regarding a rebate management platform.

This discussion became a catalyst for Conklin to evaluate various initiatives and determine strategic priorities. It helped them identify key focus areas. The rebate platform emerged as a significant priority that required immediate attention and action. It became a crucial item on the company’s agenda that needed to be addressed and checked off.

Hall praises Barsema, “We were very aware that Mo had firsthand experience and a deep understanding of the rebate process. This knowledge and experience provided us with a sense of comfort and confidence, especially since she was already connected to AD and Enable. We knew that Mo was actively working to address the challenges faced by AD partners. We recognized that she was dedicated to solving the problems we encountered and assisting us in navigating this complex landscape.”

A Step-by-Step Onboarding Process

During the onboarding process, Hall and the team had the opportunity to interact with the Enable team. Enable’s team guided Hall and his team through a comprehensive onboarding experience, introducing different tools, features and benefits in small, digestible weekly sessions. This structured approach allowed Hall and his team to gradually familiarize themselves with the platform, ensuring a thorough understanding of its capabilities over time.

Enable also implemented a project management tool that provided a schedule and timeline of events, allowing the Conklin team to have a clear roadmap. While individuals may progress at different paces, the tool served as a valuable checkpoint to assess progress and alignment. It allowed the Conklin team to ask important questions such as, "Are we on track?" and "Have we completed the necessary tasks?"  

Hall describes the process, stating, "Each session focused on a specific part of the platform, highlighting the associated features and benefits. Enable held our hand and walked us all the way through it. Because of this process, we got up to speed quickly. I really appreciated how Enable was always there to help us as much or as little as we wanted.”

Olivia and Brandon from the Conklin team were later brought in to actively engage in understanding the rebate programs and the essential data involved. Hall says, “We questioned whether we were extracting the data correctly, accurately matching and aligning our programs, and correctly translating them. We even considered reaching out to a vendor to confirm the accuracy of the programs we assessed. It turned out that, in some cases, the programs were not what we had initially assumed. This discovery had both positive and negative implications. Overall, I believe the onboarding process took a few months to navigate, but it gained momentum as we progressed. It followed a gradual progression from crawling to walking, jogging, running, and even sprinting, if you will.”

Conklin Activation Team Kickstarted the Enable Project

Before implementing Enable, Conklin had an activation team for support. The team worked closely with Randy and Hall to handle the tasks related to their processes. According to Hall, having the team on board right from the beginning was extremely beneficial. Their expertise allowed them to easily and confidently help Conklin with the transition to Enable.

Hall emphasizes that dealing with a large amount of information and trying to make sense of it all can be overwhelming. However, the activation team brought a sense of stability and tranquility to the conversation. They assured Hall and the others that they would be there every step of the way, offering support and guidance throughout the process.

There were numerous conference calls and extensive collaboration involved in reaching our current position. The process involved working closely with them, investing a significant amount of time. One noteworthy aspect was the organization component and the enhanced visibility it provided.

Hall comments, "The initial support we received from them was absolutely invaluable. It was reassuring to have a team who had prior experience in similar projects, who had successfully collaborated with AD and other customers in the past. This was the crucial aspect for us: having dedicated personnel who were there to assist us, rather than being left to navigate the software on our own with a simple 'figure it out' approach."

Enhanced Efficiency

Having access to metrics, visibility, charts and graphs is incredibly valuable for Conklin. It eliminates the need for manual translation of information and consolidates everything into one convenient location.  

Hall comments, “Everyone on the team has the same view and examines the same set of data. This streamlining process enhances user-friendliness and enables a clear understanding of our current status. One particular benefit is the ability to separate the profit and loss statements, which significantly reduces the amount of time our CFO’s accounting team spends on manual processes.”  

Accurate Rebate Accruals and Calculations

Conklin’s previous method of calculating rebate accruals relied on a flat estimated percentage applied to total year-to-date purchases at the end of each month. This approach didn't take into account volume tiers, variations in rebate percentages by product category, or interim financial data.  

May says, “Since implementing Enable, we've significantly improved our ability to calculate rebates accurately by considering actual tiers and projected annual sales. This enhancement has boosted our confidence in our accounting processes, particularly regarding the precision of our midyear accruals and the reduction of year-end true-up amounts. I would say we are claiming 95% rebates owed”.  

She continues, “Last year, our rebates ranged from approximately $5 to $6 million, a significant component of our gross profit. Confidently estimating and accruing these amounts throughout the year has proven beneficial, especially when sharing our interim financials with third parties.”

Uncovering Missed Opportunities with Executive Dashboard

The Executive Dashboard reveals items where Conklin are not receiving rebates from vendors. It highlights major spending and identifies vendors or specific items that are not eligible for rebates. This feature proves beneficial in terms of managing rebates and optimizing vendor relationships.

Hall comments, “From a missed opportunity perspective, I've noticed that the executive dashboard highlights areas where we’re not receiving rebates. While most of those items were already on our radar, we’ve started examining our payment terms as well, particularly the benefits of early payment discounts. Our ownership strongly prefers to pay early, viewing it as essential. For instance, not taking advantage of a 1% or 2% discount can lead to significant savings.”

He continues, “When we’re making purchases in the range of $60 million to $100 million, even a 2% discount represents real money that can significantly benefit the business. This has prompted us to explore not just our rebate programs but also where else we can minimize financial leakage. We realized some of our payment terms were outdated, and we've been working with our accounting team to ensure we capture all relevant updates. Overall, this focus on payment terms has revealed additional opportunities we were missing, helping us keep more money in-house instead of letting it slip away.”

Optimizing Rebates with Progress Tracker

Hall tells us, “The Progress Tracker on the purchasing side has been phenomenal for me. I find myself using it constantly, and it’s made a significant difference in our operations. For instance, during our weekly call with your team earlier, I was able to input actual versus effective revenues. This means I can exclude non-rebatable purchases, removing factors like terms, freight, and any special pricing that doesn’t qualify for rebates.”

He continues, “With this tool, I can adjust the accrued rebates, allowing me to over-accrue or under-accrue as needed, which helps narrow down the areas that aren't being optimized for rebates. It’s particularly beneficial for identifying what opportunities we have and what makes the most sense moving forward.”

Building a Winning Procurement Strategy

Conklin transitioned to Enable in 2022, with 2023 marking their first full year of usage. Now in their second year, the platform has proven to be a game-changer. Hall, who oversees all purchasing and manages a team of five buyers, begins forecasting and assessing projections around August 1st. The team evaluates which vendors have already met their rebate goals and considers shifting purchases from non-customer-preference items to better align with other vendor programs.

Hall says, “During this period, I analyze the programs where we might be falling short or coming close based on our forecasts. I share that information with our buying team and encourage them to prioritize purchasing from specific vendors where we see potential opportunities. If we’ve already hit our targets with certain vendors, we aim to push purchases toward others to take advantage of available rebate funds. I will implement this strategy every month from August onward.“

He continues, “Utilizing Enable has allowed me to analyze our programs effectively, comparing vendor offerings side by side. For example, if one vendor provides a 5% rebate while another offers only 4% or three rebate tiers versus two, I can confidently say, “Hey, your competitor has a better program than you.” This ability has helped me push for better rebate structures.”

Seasonal Purchasing

Seasonality plays a significant role at Conklin, with Q2 and Q3 being particularly strong, and early Q4 usually seeing good sales. Hall emphasizes to his team the importance of managing space constraints effectively. When they anticipate large projects or significant activity, he suggests they reduce inventory from vendors they’ve already met goals with and allocate that space to vendors we’re trying to reach.

Hall explains, “By planning ahead and making informed purchases, we can avoid putting pressure on our operations, branch, and warehouse teams at the end of the year when we might need to make large pre-buys or manage price increases. Our goal is to spread our purchases evenly, maximizing our inventory when business conditions are favorable. If we can pack more in during September, that’s a win for everyone.”

More Strategic Conversations with Vendors

Enable has significantly improved Conklin's strategic buying process in purchasing. Conklin now possess a comprehensive understanding of their current position and progress towards rebate goals and tiers. With Enable's forecasting capabilities, Conklin gains valuable insights into predicted purchasing patterns, enabling them to anticipate future scenarios and engage in proactive discussions with vendors.

This enhanced capability enables Conklin to actively monitor and observe the situation, ask relevant questions and explore opportunities for more meaningful programs or alternatives that align better with their strategic objectives. By integrating all these factors, Conklin can engage with vendors in a fundamentally different manner, surpassing previous interactions and leading to mutually beneficial outcomes.

For example, Hall says, “If it's August and the tool indicates that we are on track to reach a specific milestone or goal, we can engage in conversations with our vendors based on that information. Conversely, if the tool suggests that we might not meet a target, it gives us an opportunity to reassess and make necessary adjustments. The tool's strategic impact in various aspects has proven to be incredibly valuable for us so far.”

Hall continues, “I aim to foster meaningful conversations that offer diverse perspectives and bring tangible value, distinguishing Conklin as an appealing customer to engage with compared to other alternatives. I want our interactions to be eagerly anticipated because they provide valuable insights and input that may not be readily available elsewhere.”

Being Proactive Instead of Reactive with Vendors

Enable gives Conklin peace of mind and confidence in their rebate process. In the past, Hall often felt uncertain about the company’s rebate status. There are so many factors involved—freight, terms, discounts, claim backs, and credits—that all need to be accounted for before calculating the rebate from the net amount.   

He comments, “Now, when I speak with vendors, I'm able to take charge of the conversation. Instead of them saying, "I'll have to check," I'm now the one informing them of where we should be and asking for verification. If we're not aligned, I need to understand why. This shift allows me to cut through the smoke and mirrors often present in these discussions.”

For instance, Hall discovered one vendor was calculating a rebate incorrectly. As a result, they lost money in 2023 and the company wasn’t aware of it until they had several conference calls to clarify and rectify the situation.

Fortunately, Conklin managed to recoup those funds, but this experience highlighted some hidden practices that favored the manufacturer. Now, Conklin can approach these conversations more proactively, allowing them to be on the offensive rather than defensive.  

Vetting Vendor Base

Rebate programs have been leveraged as a tool to engage with both current and potential vendors. The director of sales and the team frequently discuss growth and the need for a strategic vendor base. They understand that, depending on the category, they may require three, four, or even seven vendors, but each will receive a share of the business in some way.   

However, they have encountered numerous vendors eager to partner but unwilling to meet the required terms and conditions provided by current vendors or the expectations set for new partners. This vetting process helps determine whether these vendors are genuinely committed to moving forward.  

For example, a large national vendor approached the team to take on their business. They expressed willingness to proceed but required specific terms to make the partnership viable. When the vendor insisted they couldn't meet those terms, they were reminded that their competitors were willing to comply. Ultimately, this prompted the vendor to reconsider, and they agreed to make concessions to bring the company on board, recognizing a gap in their Southeast market.

Hall says, “This approach has not only strengthened our relationships with vendors but also increased our bargaining power. It encourages existing vendors to step up their game. When they ask why they aren’t receiving more business, we can point out that they haven't made any meaningful changes or offered us compelling reasons to increase our partnership.”   

He continues, “We've become more strategic in our vendor relationships and have made a concerted effort to invite more of our key vendors to our corporate office for annual strategic meetings. In the past, we didn't prioritize this, but we aim to host about ten vendors a year to discuss our 70+ rebate programs and explore what makes for the best vendor partnerships. This initiative is essential in aligning our goals and fostering collaboration.”

Mutually Beneficial Goals

Recently, Hall revisited a negotiation with one of their vendors after realizing that a market segment they initially projected to be strong had underperformed. As a result, purchases from this vendor were negatively impacted. He approached them in May and explained, “There’s no way we’re going to hit this number. We’re set to make multimillion-dollar purchases, but the market conditions just aren’t favorable.” He emphasized that he couldn’t return to ownership and explained that they missed their rebate goal due to unforeseen market challenges.

To his surprise, they responded positively, saying, “No one’s ever done that. No one’s ever asked us to help reduce our goals as a partner.” This proactive approach underscored the importance of collaboration. Both parties benefit: they want to increase purchases, and Conklin want to maximize rebates. By encouraging them to adjust their expectations and considering purchases from their competitors to support their goals, he demonstrated what it means to be a true partner.

Hall explains, “For me, part of being an effective vendor partner is understanding that manufacturers want us to succeed. We’re all in this to make money, and they want to hand us that check at the end of the year with gratitude. By initiating open conversations and asking for their support in adjusting targets, I’ve been able to foster stronger partnerships and ensure that our forecasts align with market realities. Accurate data and the ability to track it have been crucial in these discussions.”

Expanding into New Markets

Conklin is preparing to add two new locations—one in Tampa, Florida and one in Raleigh, North Carolina—while also exploring opportunities in three additional markets. Each new market presents unique dynamics, including varying products and vendors servicing the area.  

When entering a new market, they typically begin by extending existing relationships, even from a distance. For instance, as they expand into North Carolina, there is an expectation that a different vendor will be needed for one of their product categories due to the limitations of the current service platform used by their primary vendor in most stores.

Hall says, “This transition requires establishing a new vendor relationship and ensuring we have the capability to track and manage this change effectively. With Enable in place, I can compare vendor offerings, negotiate terms, and ensure that we maintain consistency across our 70+ rebate programs.”

He continues, “While expanding might present challenges—such as existing distribution from competitors—Enable provides a framework that helps us analyze our programs, ensuring we're at least on an equal playing field. This way, we can avoid losing out on rebates, even if we're not the preferred vendor partner in those markets. Overall, this strategic approach allows us to navigate expansion thoughtfully and effectively.”