• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » How to Make the Most of Supplier Rebate Programs

Think Tank
Think Tank RSS FeedRSS

How to Make the Most of Supplier Rebate Programs

0617_BusinessFinance.png

A small business manager counts cash. Photo: Getty.

July 14, 2022
Derek Gittoes, SCB Contributor

Wholesale distributors are facing a wide range of global supply chain disruptions — ongoing shortages, longer lead times, higher logistics costs and more — forcing many businesses to seek new avenues to drive revenue.

Supplier rebate programs have traditionally been a key margin enhancement for wholesale distributors. However, since these programs in wholesale distribution are often highly complex, manual and time-intensive, distributors consistently struggle to maximize their profitability. 

Additionally, many distributors’ legacy IT systems are homegrown and outdated, and most of them don’t use automation across billing, order fulfillment and warehousing functions — adding inefficiency to their internal processes. Meanwhile, wholesale distributors are juggling multiple processes tied to planning to ensure the right inventory is at the right location at the right time. 

Given these challenges, wholesale distributors need technology and best practices that can help transform their supplier rebate programs. Here are a few key steps toward achieving those goals:

Digitize the supplier rebate lifecycle. Since supplier rebate programs are traditionally highly complex, manual and time consuming, wholesale distributors need greater visibility into their supplier rebate programs to help them better track and absorb the funds owed in a more collaborative manner. By leveraging cloud-based supply chain and ERP technologies to improve program visibility, distributors gain the critical ability to manage the entire supplier rebate lifecycle — from contract and program management to tracking and performance analysis. 

Automate foundational processes. Amidst ongoing global supply chain disruptions, wholesale distributors are facing monumental challenges to maintain the right level of supply with the right inventory in the right warehouse location — and it’s quite the complex balancing act. By automating foundational processes and functions such as replenishment planning, order fulfillment, backlog management and supplier rebate management, distributors can proactively fulfill the highest-revenue orders for their most critical customers and channels. This helps wholesale distributors predict consumption and plan restocking more accurately. In addition, by connecting these automated functions to their financial systems, distributors can increase productivity, improve order-to-cash cycle time and reduce operational errors. As a result, distributors can enhance operational efficiency and boost profitability. 

Wholesalers are increasingly aiming to generate new revenue streams by introducing private-label products, subscription-based services and omnichannel fulfillment. Through the integration of business functions across the organization, these companies can enhance their order-to-cash processes to improve revenue management and customer satisfaction. 

Automating supplier rebate management helps distributors gain an invaluable double benefit, as it enables them to optimize their trade programs and boost profit margins while upskilling their workforces. As a result, wholesalers are able to navigate their supply chain challenges to maximize profitability, optimize workforce management and ultimately gain a competitive advantage.

Derek Gittoes is vice president of supply chain management product strategy at Oracle.

Cloud & On-Demand Systems Supply Chain Finance & Revenue Management Sourcing/Procurement/SRM Technology Retail

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A MEDLEY OF IMAGES OF GRAPHS AND CHARTS SUPER-IMPOSED OVER A HUNDRED DOLLAR BILL

    How Companies Can Avoid Competing Solely on Price

    Logistics
  • A RED AND WHITE FRITOS DELIVERY TRUCK IS PARKED IN THE LOADING ZONE OF A PARKING LOT NEXT TO AN ORANGE TRAFFIC CONE.

    Climate Change Threatens a World Without Doritos

    Global Supply Chain Management
  • Managing-Supply-Chains-in-the-Face-of-Climate-Disaster.jpg

    Watch: Managing Supply Chains in the Face of Climate Disaster

    Regulation & Compliance
  • Is-There-a-Right-to-Work-Remotely.jpg

    Watch: Is There a ‘Right’ to Work Remotely?

    HR & Labor Management
  • A WOMAN STANDS WITH A TABLET COMPUTER IN A WAREHOUSE, SURROUNDED BY SYMBOLS FOR SHIPPING METHODS

    Podcast | Getting the Most Value From Your Supply Chain Planning System

    Technology

Digital Edition

Scb may 2023 lg

2023 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

Visit Our Sponsors

Antuit Zebra Anvyl Brother
Cleo Data Capture E2open
Eva Air Enveyo GAINSystems
Generix Geodis GEP
GreyOrange Here Holman Logistics
Infor Inmar Kinaxis
Locus Robotics Logility LogistiVIEW
Lucas Systems MCA Connect MPO
Old Dominion OneRail Overhaul
PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
Saddle Creek Logistics SAP Shyft
Sourcemap Tecsys TGW Systems
Verusen Workshop
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing