The Company

KIE Supply was founded in 1955 by Gus Kittson Senior as Kennewick Industrial and Electrical Supply. As the company expanded beyond selling electrical products and grew past its Kennewick headquarters, it rebranded to reflect its broader offerings. Nearly 70 years later, KIE Supply has expanded to six locations across Washington, Oregon, and Idaho. The company operates as a wholesale distributor of plumbing, irrigation, and electrical products, and also features decorative plumbing and lighting showrooms.

Amelia Kittson, the Executive Vice President, is now a third-generation owner of the business. Her father, Gus Kittson Jr, has served as president since 1984 and is currently preparing for retirement in February. As a result, Amelia has taken on the responsibility of managing the company. Having worked at the company since the age of 15, Amelia was cross-trained across various departments. After earning a marketing degree in college and an MBA in supply chain management from the University of Wisconsin, she returned to KIE Supply as a vice president, focusing on the leadership transition from her father to herself over the past five years.

Kittson says, "Many people may not realize that most of the profit generated from selling our products merely covers basic expenses, such as personnel, overhead, and inventory costs. The true profit we see at the end of the year is significantly driven by the backend rebates we receive from our vendors. This aspect of our business is critical to our overall profitability."

The Challenges

Physical Paper Agreements

KIE’s past approach to managing rebates involved a literal stack of physical files. This method proved impractical for an organization of KIE Supply’s size. While someone could manage the files manually, it was neither efficient nor reliable and came with various downsides. Kittson explains, "It was file folders in a cabinet, and as I started cleaning those up, I found programs where we had missed opportunities. We never received renewals of our contracts or programs from vendors for various reasons. Our manual system was so inefficient that we didn’t catch these oversights."

She continues, "When Enable approached me, I recognized it as the solution I had been seeking. I needed a system to automate rebate management, as that was a crucial area for our company’s profitability."

Unsigned Agreements

KIE Supply discovered agreements that hadn’t been signed since 2012. Amelia says, "We went back to those vendors and said, 'I don’t know why someone forgot about us, but can we discuss getting a program put back together?' Unfortunately, I couldn’t retroactively ask for money, but this discovery was part of sorting through that very manual stack of paperwork. It was literally stacks of paper, with invoices dating back to the '90s."

Complexity and Fine Print

Kittson comments, "Rebates can be quite complex. While many are straightforward, some agreements span 10 pages and include extensive fine print about product inclusions, exclusions, and calculations. Onboarding with Enable has allowed me to dive deeper into these agreements and uncover issues. Now, I’m going back to vendors and pointing out the problematic fine print. Many programs aren't as lucrative as they initially appeared."

Missing Rebate Dollars

Kittson continues, "I began calculating the potential lost rebate dollars based on our purchases over the past several years, and the amount was significant. For example, we discovered a vendor agreement that hadn’t been renewed since 2019. We never received the renewal, and because of our manual process, it slipped through the cracks. When I calculated what we would have earned in rebates over the last four years, it amounted to about $20,000—a significant loss simply because we didn’t have a system in place to catch it."

She adds, "This loss doesn’t even account for the need to audit the rebates. Enable could remind us, 'Hey, you haven’t received a renewal from Vendor X,' something we couldn't do before."

The Software

Impressive Onboarding and Support

"The onboarding and support teams at Enable are fabulous. They’ve been incredibly patient with me, especially since I can be slow during this process. Their support has been a huge plus."

She adds, "During the initial inquiry phase, they encouraged us to challenge them with our most difficult programs. I provided a few that we've struggled with for years, and they did an impressive job analyzing them. This really built my confidence in the solution."

Meeting KIE Supply’s Specific Needs

Kittson explains, "One thing I’d definitely recommend about Enable is the level of customization they offer. I’ve looked at other platforms, and many take a 'one size fits all' approach. With Enable, they go above and beyond to meet the specific needs of our company. For example, we had an issue with one report—it wasn’t providing the right information. Enable’s team immediately had their programmers modify the system to work with our data. That kind of dedicated support was really impressive."

Tracking, Auditing, and Forecasting Rebate Receivables

Kittson says, "A significant part of our motivation for choosing Enable was its ability to forecast rebate receivables. Currently, we lack an effective way to do this. In the past, we simply accepted whatever checks we received without the ability to audit, forecast, or track them. We would just wait for a check from a vendor without clear visibility into whether we were getting the right amount."

With Enable, KIE Supply can now track receivables, allowing them to claim rebate income accurately. Kittson says, "This is game-changing because it helps smooth out the financial spikes we've experienced, where big fluctuations in revenue occurred due to the timing and unpredictability of rebate payments. With this visibility, we can budget more effectively, align cash flow better, and make smarter financial decisions."

Identifying Gaps and Missed Opportunities

KIE Supply currently has rebate programs with around 130 vendors, though there are more vendors on the books. The team is actively onboarding, and Kittson is nearing the completion of this process for 2023. They have successfully replicated all existing programs for 2024, making modifications as needed.

Looking ahead, Amelia's plan is to analyze their vendor base and identify any gaps in vendor programs. She says, "My plan is to reach out to existing vendors and discuss the absence of programs, outlining my expectations. Enable will also provide tools to help us generate our own programs, making this process more efficient."

Buying Better and Smarter

Kittson comments, "One of our goals is driving both profitability and sales growth. One way to impact those KPIs is to buy better and smarter while strengthening vendor relationships. Enable is allowing us to leverage existing agreements, negotiate better deals, and ultimately increase profitability."

Strategic Purchasing

KIE Supply is using Enable’s real-time information to guide future purchasing and negotiations. Kittson says, "In the past, we manually calculated true nets—factoring in all rebates—to decide where the best spend would be. It could get complicated quickly. Enable allows us to do this in real time and, in a way, does the heavy lifting for us."

Professionalism and Accountability

Once KIE Supply can leverage Enable’s data, it changes the dynamic with vendors. Kittson explains, "Vendors want to partner with businesses that are on top of things. When we demonstrate that we're analyzing data, tracking performance, and making informed decisions, they take us more seriously, fostering stronger partnerships."

She adds, "It also helps us stay on top of vendors who may be late with rebate checks or forget to send program renewals. With the right data at our fingertips, we can hold them accountable and ensure they do their part."

Enable Supports KIE Supply’s Growth Plans

Kittson explains, "Implementing a rebate management system was essential. Previously, we just had manual files and papers, which wasn’t really a system. As our company has grown, and with the growth plans we have, something had to change. Enable is the tool that's helping make that happen."