Rebate management challenges
Common rebate management challenges for building materials companies
Handling rebates for a diverse set of products. Typically Builders Merchants stock many thousands of products across hundreds of categories. A deal negotiated on cement is very different from what may be appropriate for fencing or sanitary ware. ERP systems don't tend to provide the range of deal mechanisms necessary to reflect supplier agreements properly.
The opportunity to harmonise volumes, assortments and suppliers across the whole organisation and then negotiate deals, calculate rebates, manage accruals and cash collection across brands, depots and/or members.
Managing the distribution of rebates between brands, depots, members. Being able to ensure that deal benefits are distributed in a fair way and that there is complete visibility and transparency around the mechanisms for doing so, in order to incentivise the right behaviours at branch level.
Dealing with multiple ERP systems, with supplier accounts set-up a number of times in each. Goods may be receipted in units of measure different to that in which the deal was negotiated. And group-wide agreements tend to be in place overarching the local deals that each brand may agree.