I was with a manufacturer last week and we discussed distributor acquisitions and “the why?” One of the data points we discussed was the declining net profitability of the business as a percent of sales and the corresponding increase in the contribution that rebates make to distributor profitability, which is increasing.
They further affirmed this with the comment “that seems to be all that they want to talk about.”
The conversation evolved as we were talking about their forthcoming “distributor program (aka annual rebate program).”
Bottom line – volume rebates are important to distributors.
Unfortunately, many fly blind with relatively poor processes, as well as being challenged in driving performance throughout their company for “preferred” suppliers.
The reason is understandable as it is driven between sometimes conflicting priorities of sales, branch managers, marketing, and purchasing / supplier relations. And yes, it’s complicated. Further, rebates should not be the driver of the business. “Earning 5% on something sales cannot / will not sell generates $0 net profit.” The key is that you still need to sell something to make something and pay bills.
But, if you had an effective rebate administration system AND you could infuse it with AI so that actionable intelligence could be derived, could the resulting insights and information add value and help you lead your team to make better decisions for the business? Quite possibly.
With distributors seeking AI that can be additive to the business, out of the box, perhaps rebate management is an area to start?
Enable is offering a webinar on Thursday, October 10th at 11:00 pm ET titled “Shaping the Future of Rebate Management”.
According to a recent Enable press release, this webinar focuses on how AI will help companies optimize their rebate earnings (if you’re a distributor) or sales performance (if you are a manufacturer.)
Shaping the Future of Rebate Management: AI-Powered Solutions for the Modern Enterprise
The press release further stated:
“In an era where data-driven decisions are more critical than ever, the integration of AI into rebate management is transforming how businesses optimize their trading programs and drive value. Join us for an exclusive roundtable discussion as industry leaders and rebate experts explore the game-changing potential of AI-powered solutions in rebate management.
During this interactive session, you’ll gain insights into how AI can enhance rebate analytics, improve forecasting accuracy, detect risks earlier, and automate complex data mapping processes. We’ll also dive into real-world use cases of AI in rebate management, demonstrating how companies are already leveraging AI to unlock new efficiencies and boost profitability to drive their rebate strategies.
Key Discussion Points:
- The convergence of AI and rebate management and how it’s reshaping the modern enterprise.
- The shift from traditional analytics to AI-powered solutions.
- Real world AI use cases from leading companies on the forefront of AI adoption for rebate strategy.”
Webinar Presenters are:
- Marty Labelle, Chief Product Officer, Enable: Marty will paint the vision for how AI will impact the future of rebate management, discuss the major AI trends that influence Enable’s AI strategy.
- Raffaele Liguori, Category Director, Rexel UK: Raffaele will discuss his AI strategy/approach, where he sees the most impact on rebate management for the electrical industry and share his perspective on AI impact for Supply Chain. (As an aside, this this could provide insights into what to expect from Rexel’s US operations.)
- Graeme Storey, Head of Commercial Finance for a UK based foodservice manufacturer: Graeme will discuss his AI strategy/approach, where he foresees the most impact on rebate management in the foodservice industry and shares his observations on Enable’s AI powered solutions. (For those who primarily serve the MRO market, this will have direct relevance.)
- Mark Gilham, VP and Evangelist, Enable: Enable’s Finance/Rebate subject matter expert.
If you are responsible for your company’s rebate strategy … either negotiating deals, administering them, or utilizing the information, whether you are a distributor or a manufacturer, this session will provide you with ideas on how AI, integrated into your rebate management platform, can help you make better decisions.
As your wondering what you need to do to meet your 2024 rebate goals, and considering what you’ll commit to, as a goal, for 2025, give thought to attending this rebates webinar on Thursday, October 10th at 11:00 pm ET. Perhaps AI can provide actionable intelligence to help ensure higher rebate income in 2025?
