MAXIMISE STRATEGIC PURCHASING DECISIONS WITH REBATES
I am purchasing on behalf of my company and therefore responsible for maximising strategic purchasing decisions with rebates.
Rebates are used to drive the sale of specific products with incentives attached to encourage buyers to purchase more. They tend to be long term and tactical, focused on driving customer loyalty and brand affinity.
With a significant supplier base and a large number of SKUs, transactions, and net prices are difficult to manage – but add rebates into the equation and it becomes even more complicated.
How do I do this?
Accuracy in managing supplier rebate
The management of supplier rebates can be complex. This can impact margins through missing out on claims that are rightfully yours.
The role of procurement is to negotiate pricing terms that provide the best pricing, for more profitable purchasing decisions.
Data to back up the numbers
As competition increases, the pressure to reduce costs and build collaborative relationships with your suppliers means that rebates and other incentives (commissions, bonuses, promotional etc) are becoming key components of their pricing strategies. Many businesses leave the supplier to inform them of what is owed. But by not having a handle on the numbers yourself, margins can be impacted through missing out on claims that are rightfully yours.
Real time visibility
With visibility of your data in real time, your business’ purchasing decisions can be improved. It allows you to better track key performance indications to help you manage costs and maximise the earnings for all products and services. With centralised and accurate information, buyers can manage complex rebate programmes across multiple vendors and products.