SUPPLIER MARKETING SUPPORT Software Module
IBS Supplier Marketing Support software streamlines the process of claiming rebates from your suppliers or manufacturers. It's a powerful application for distributors who are promoting the sale of items in collaboration with manufacturers or suppliers.
HIGHLIGHTS of Features & Benefits
- Track and maintain functional discount programs
- Ensure correct margins for orders
- Create supplier agreements with flexible keys
- Automate and administrate claims and reverses
- View all connected rebate transactions.
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COMPLEX AGREEMENTS MADE EASY
Traditional partnerships between manufacturers and distributors are changing drastically in today's economy. Market consolidation, the emergence of new channels, difficulties in product differentiation and market share are all factors resulting in efficiency gains and lower prices for customers. This means that profits are divided differently from before; new terms ensure that sales income is allocated fairly among supply chain partners, based on investments and costs.
It's increasingly common, then, that manufacturers manage the fragmentation of traditional channels by using 'functional discounts programs'. With functional discounts, distributors are compensated so that payments (discount off list) are tied to the actual activities being performed by the channel.
IBS Supplier Marketing Support is designed to solve the complexities of functional discount programs by providing:
- New supplier agreements, using flexible agreement keys
- Dynamic reimbursement calculation
- Visibility of all connected rebate transactions from all programs related to the sales process, including quotations, sales orders and invoices
- Flexible administration of supplier rebate claims
- Enhanced Report Writer capability to strengthen follow-up potential
IBS Supplier Marketing Support lets you keep track of functional discount agreements. If a supplier negotiates prices directly with a customer, the application automatically charges the agreed upon lower prices to the customer. The solution also automatically tracks and charges the supplier for the difference.
An automatic solution for functional discount agreements helps you to control margin while making it easier to administer claim tracking.
A SEAMLESS ELEMENT OF SALES ORDER PROCESS
To ensure that your margins are correct when entering customer orders, the sales price can be calculated based on cost price, including the rebate you should claim. Starting from the creation of quotations, through to invoicing, the system automatically searches for the relevant agreements and resulting rebates.
After item and quantity have been entered into a sales quotation (or sales order), the system will search and retrieve the best rebate and display this in a separate field on the detail line level. For example, if a rebate is quantity-dependent, the system will take this into account and find the best option. It will ensure that order and invoice dates conform, if necessary, to possible campaign related rebates. Even if the sales quotation line is changed, the rebate transactions are deleted and a new search starts.
The system creates rebate transactions that are considered 'preliminary', in order to retrieve the correct sales order margin.
In addition to sales and cost prices you are also given an idea of the rebate you could claim if the sales order is eventually processed. If the quotation becomes a sales order, new rebate transactions will be created.
Reimbursement normally makes it difficult to evaluate the true margin on sales. With IBS software, however, you can see all connected rebate transactions from all programs related to the sales process, such as quotations, sales orders and invoices. The field cost price on order line is not reduced with the rebate amount, as you want to follow up both values. Instead, cost price and rebate amount are stored separately, but shown together in some functions.
Because the profit on the sales order line is affected by a supplier rebate agreement, the profit check routine also considers rebate transactions. The rebate amount reduces the ordinary cost price from the order line and the result will be a higher profit.
PRICING METHODS
One type of pricing method per agreement can be used, providing a fixed rebate per item. The cost basis for the Supplier Rebate amount is flexible, allowing you to choose from the following:
- Average cost for item/warehouse
- Last purchase cost for item or item/warehouse
- Standard cost for item or item/warehouse
- Purchase price of the item
Based on the cost basis that is chosen, the following pricing methods are available:
- A percentage to calculate the Supplier Rebate amount. The basis method of choice, listed above, is multiplied by the percentage to calculate the Supplier Rebate amount
- A fixed-cost Supplier Rebate. The rebate amount to claim is calculated as follows: the basic cost minus fixed cost. Using this alternative the supplier/manufacturer guarantees a rebate that varies with the cost basis
RECLAIMING
Besides the benefit of ensuring reimbursement, IBS Supplier Marketing Support also helps you handle claim administration with a minimum of fuss. The system is dynamic, allowing you to choose different claim processes in order to map this process with other supplier communication routines. This flexibility lets you handle the whole supplier process efficiently.
The final rebate transactions are created during invoicing, updating the General Ledger as well as statistic files. You are able to work with all created rebate transactions from a single view. This makes it possible to see the rebate amount, and the detailed transactions, before a rebate amount is claimed. You can also follow the status and the progress of each claim.
The dynamic process lets you handle the claim in two different ways:
- The claim can be posted to A/P. In A/P, a credit transaction can be created which can be settled against supplier invoices during the payment process. With this method, claims can be reduced directly from outstanding supplier invoices
- The other claim method is to create a sales order with the supplier as customer. An invoice will then be created and sent to the customer (supplier) and a transaction will be created in A/R. This method uses traditional, automatic A/R routines with reminders, etc
REVERSING CLAIMS
If the rebate amount for a claimed rebate is incorrect or, for instance, the rebate payer does not agree with the amount, you can quickly correct the matter by using the specially designed credit claim feature.
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When claiming your rebates from your supplier you get a good overview of all sales orders that have built up the claim.
Contact IBS for more information. »
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