Many companies are challenged with managing a large supplier base, which in itself can be an administrative headache, but add in the management of often complex supplier rebate agreements and many companies find their current processes to be significantly lacking.
Carefully negotiated rebate agreements, set against agreed spend levels, can account for millions of pounds worth of revenue for businesses, but too often data relating to rebate terms sits in multiple locations, across many different formats. In our recent research report: ‘The Cost Of Poor Supplier Rebate Management’, we revealed that companies spend, on average, 100 hours a month managing supplier rebates – it is an administrative nightmare.
The management of supplier rebates is something that, in the past, companies have often over looked; but now increasing numbers are recognising that there is a need for a better solution, a more structured process that allows for rebate revenue to be fully optimised.
At the heart of a better, more efficient solution is the need for greater visibility and a standardised process. Creating a central system that allows for supplier agreements to be collected and stored in a consistent format is fundamental to gaining greater control over rebate agreements and realising their full value.
Once information is captured and stored in a coherent manner, organisations can consider the process in which these agreements need to be managed. Creating a clear workflow and defined method for how supplier rebates are processed allows organisations to track supplier agreements in a more efficient manner. Identifying important milestones and metrics that need to be measured and acted against helps to define the requirements needed from each stakeholder within the workflow cycle.
It may sound a daunting task, but with cloud based rebate solution it can be relatively straight forward for businesses to gain greater control over their rebate management process. Software that supports the management of supplier rebates allows you to collect, store and track supplier agreements from one centralised and easy to use hub. Built-in workflows streamline the whole process of managing supplier agreements while automated reminders alert stakeholders to key milestones to ensure no saving opportunities are missed. A user friendly dashboard gives both Finance and Procurement departments real time visibility over the process, reducing administrative burdens, improving efficiency and allowing for higher volumes of agreements to be managed. All of which make a real impact to bottom line savings.