The Company

Ferney is a Dutch buying group operating in the tooling industry, representing one of the three key buying groups in the Netherlands within this sector. Comprised of 37 members and collaborating with over 200 suppliers, Ferney's primary objective is to curtail the cost of goods sold through negotiated purchase agreements and rebates. To effectively achieve this mission, Ferney boasts a substantial team of 50 professionals within its sizeable purchasing and logistics department.  

Michiel Remigius is their financial manager and is financially responsible for the whole group. With an annual turnover of approximately €325 million and purchasing power of €300 million, Ferney maintains a strong presence in the industry.  

Rebates Drive Membership

Rebates play a crucial role as one of the primary revenue sources for members at Ferney. The company places great emphasis on their registration, aiming for a thorough and precise record of these rebate agreements. This process encompasses meticulous initial registration and swift subsequent updates. Once completed, Ferney enters the crucial phase of collecting on these rebates

Remigius says, “The ultimate aim, of course, is to allocate these accrued funds to our members. As a member-centric group, this step is of paramount importance to keep our members content and happy.”

‍Their Success Is Our Success

‍When the market is on an upward trend, Ferney’s aim is to extend rebate opportunities and maximize them as effectively as possible, whether for the collective benefit of their members or tailored to individual members. An annual rush occurs around November and December as their members are eager to assess their expenditures, questioning if there is a need to place additional orders.

Remigius says, “We strive to become increasingly reliable and precise in aligning our strategies with the revenue fluctuations, all with the overarching objective of assisting and benefiting our members. Their success remains our foremost priority.”

The Challenges

Complex Rebates‍

Ferney manages a wide range of rebate types, including group bonuses, individual bonuses, and various combinations of both. The complexity of handling these rebates is considerable due to the intricate nature of the agreements involved. This complexity stems from numerous inclusions and exclusions that dictate how rebates are calculated and applied. Additionally, Ferney’s suppliers often have unique and distinct objectives, further complicating the management process.

Take, for example, a supplier aiming to boost sales in a specific category, such as gardening tools, by offering higher rebates on those products. While this creates an incentive for members to focus on that product range, it adds a new layer of complexity for Ferney. The challenge lies in not having real-time product data for every transaction. Although Ferney maintains a robust database, it’s virtually impossible to have up-to-the-minute information on every product sold across all members, which complicates accurate rebate tracking and calculations.

Remigius explains, “While we do have a few complex cases, Enable effectively helps us navigate and reduce that complexity, streamlining our operations significantly.” By using Enable, Ferney can better manage these intricate rebate agreements, ensuring that even the most complicated deals are handled efficiently. This helps them stay agile, meet supplier goals, and provide value to their members, all while minimizing the risk of errors.

Inaccurate Spreadsheets

Spreadsheets are undoubtedly versatile and valuable tools, but they come with a higher risk of errors, which can result in the dissemination of inaccurate information to Ferney’s members. These mistakes may arise from glitches in the spreadsheet software or from human error during data entry. Such inaccuracies can lead to inefficiencies, creating additional work for the team and potentially causing issues for members.

Remigius explains, “In the financial realm, accuracy is paramount. Every finance professional strives for a near-perfect forecast, usually aiming for about 95% certainty. Throughout my career, I’ve never had to restate financial accounts, which is a positive. But the devil is in the details. Even a minor inaccuracy can be frustrating for a member—for instance, ordering slightly too little of a product, which could end up costing them more than expected.”

The Software

The Enable Team are Highly Capable and Helpful

‍Remigius tells us, “The onboarding process went quite smoothly; it was efficient and effective. Although everyone was working remotely, it worked exceptionally well. The Enable team are highly capable and very responsive, operating within a quick turnaround time. This helped our efforts. Enable aided us in acquiring all the necessary agreements, which was a tremendous help.”

Collecting Rebates Faster

Before Enable, the rebate management process was quite chaotic. Remigius and his colleagues were not happy with the process. Collecting data and managing rebates involved a lot of manual work. While some manual effort still exists, the situation has drastically improved compared to three years ago.  

Remigius comments, “We've seen a significant reduction in the time required for these tasks, allowing us to be much faster in collecting rebates. For example, I used to be busy well into May, but now, by the end of March, I'm almost finished. This improvement is largely thanks to Enable.”

He continues, “We're also excited to become even faster next year as we advance to the next phase of using the system. This efficiency gives us the opportunity to focus on more important tasks, allowing us to add greater value to our operations.”

Collaborating Efficiently with Members

Remigius comments, “The collaboration features of Enable significantly enhance our communication with our members. They want to ensure that the calculations are accurate, and through these discussions about rebates, we gain deeper insights into their businesses and the importance of these programs to them. This knowledge transfer is invaluable and leads to improved quality on our side.”

He continues, “As we engage in conversations about how rebates work and what we can do to enhance them, we often identify and correct mistakes we've made. Ultimately, this collaboration helps our members become more effective in managing their rebates as well, fostering a stronger partnership overall.”

Driving Member Transparency

Transparency is of paramount importance for Ferney as a buying group. With Enable, the organization's goal is to openly share information and actions with its members. This transparency acts as a crucial communication tool, allowing members to clearly understand the steps being taken and how these efforts contribute to their progression within the rebate tiers.

Remigius says, “I can already see improvements in how we handle rebates now that we have our data and calculations in order. This year, especially for the 2024 season, we are in a much better position to be proactive, both for our members and ourselves. We can focus on optimizing rebates and minimizing the risk of losses.”

He continues, “I believe this year will be a true test of our efforts. It’s the first year our members are actively using their opportunity scores, progress trackers, downloading reports, and conducting their own analyses. I’m eager to see how these tools benefit them. If it helps us, then it should undoubtedly assist them as well.”

For example, Ferney and their member TABS are collaborating closely, sharing data in a way that highlights the value Ferney can offer to its members. This partnership demonstrates how Ferney leverages data to gain deeper insights and improve decision-making. They assist TABS in achieving their objectives by delivering accurate data and securing favorable buying deals. However, TABS takes the lead in actively managing these opportunities, demonstrating their proactive approach and full engagement in the process.

Accessing Data Independently‍

Three years ago, Ferney recognized a shift from merely pushing information out to enabling their member customers to pull information themselves, allowing them to access data independently.  This shift allowed them to facilitate a more proactive approach to information sharing. This capability is crucial for our growth and maturity as a company, enabling us to be more responsive and efficient in our operations.

Remigius explains, “At Ferney, we used to distribute PDFs to our members every month. This involved manually gathering the data, inputting it into Excel, converting it into PDF format, and then sending it via email. Now we can provide this information at their fingertips. While they may not check Enable every day, the availability of information adds a level of professionalism to our buying group. It's about offering the convenience of immediate access, which, in the long run, can build a sense of trust and reliance among our members.”

Cost Savings of €60K

Remigius tells us, “Enable has helped me save a significant amount of costs—around €60,000 a year—primarily through reductions in labor and time. However, the most critical aspect isn’t just the cost savings; it’s about minimizing the risk of losing rebates and maximizing opportunities.”

He continues “In the long run, my hope is that we will gain better control over our rebates and the associated opportunities, ultimately leading to reduced risk. This proactive approach is essential for ensuring we capitalize on every potential benefit available to us.”

Identifying New Opportunities

As a buying group, Ferney have broken down the silos, which has enabled the finance department to act more proactively in supporting the purchasing department. This collaboration helps them to work together to finalize rebates and complete deals more efficiently.  

Remigius tells us, “Enable actively supports our purchasing team in real-time as we navigate the final months of the year. We’re focusing on identifying opportunity scores to pinpoint which areas have the highest and lowest potential. This functionality greatly assists our purchasing department in locating and recognizing opportunities.”

He continues, “As a result, we spend less time collecting and managing data and more time focusing on optimizing our processes. We’re now able to ask important questions like whether all rebates for this year have been finalized and how we can identify and leverage new opportunities. This positive shift allows us to drive greater value for the organization.”

Accurate Forecasting

With the implementation of Enable, Ferney has seen a significant improvement in its ability to forecast more accurately and proactively. This shift not only enhances internal processes but also drives better outcomes for the entire buying group. "Now that we have Enable, we’re much more proactive and can forecast more accurately," notes Remigius. "This improvement will ultimately lead to greater member satisfaction and higher rebates for us, making it a vital change for our buying group."

Completely Digital Agreement Creation and Sign-off‍

Remigius says, “The contract management side of Enable is crucial for streamlining our processes, which are still largely manual. The most valuable part of this system is that it provides real-time insights into the status of our contract management agreements and processes. This visibility is essential for ensuring that everything runs smoothly and helps us stay on top of our commitments.”  

He continues, “We now have our contracts securely stored within the system, giving us the capability to monitor and track changes as needed. This is a significant step forward, as it allows us to collaborate seamlessly with our suppliers. Gone are the days of printing agreements and signing them manually; everything will be efficiently managed within the digital realm. This transition represents a notable advancement in our buying group operations.”

Data Transformation

The level of data literacy and maturity is of utmost importance to Ferney. That's why they utilized Enable’s data transformation services.  This valuable information established a solid foundation for data processing and ensured the accurate categorization of products for Ferney.  

Remigius explains, “A key focus is enhancing the data flow between us and our members. A crucial component of this strategy is Enable, which facilitates vital data and information exchange for our members. By improving our data quality, the system's calculations will become more accurate than they are at present.”

He continues, “From there, we can progress our members to higher rebate levels, but if the initial data quality is subpar, it can hinder their progress. Without individuals on your team who grasp the intricacies of data and its implications, the onboarding process can become quite long. The Enable team is luckily well-versed in their field, when it comes to your data, they understand how it should be properly interpreted.”