Incentive programs are a great way to encourage distributors to sell more and meet end-user demands.
Rebates allow partners to receive money back from a purchase after the sale is complete. Ship & Debits are special pricing agreements where distributors debit suppliers for goods shipped below list price.
Often lumped together, Rebate Agreements and Ship & Debit Agreements do have some differences. While Ship & Debit Agreements boost loyalty and profits, these programs can also help mediate competitive pricing. Allowing distributors to sell left-over stock products at lower prices or offset changes in the market. They may also shift unsold stock to make room for new products.
Ship & Debit Agreements, much like Rebate Agreements, can face many challenges if processed manually. Dealing with thousands of claims each month can be time-consuming, labor-intensive, and error-prone. At the same time, claims often include large numbers adding another level of stress.
Common Problems With Manually Managing Ship & Debit Agreements
Some of the most common issues faced with manually managed systems are:
Significant Delays – Due to the volume of paperwork and calculations alone, submitting claims can take a lot of time.
Incorrect Data – When processing claims manually, it is common for important data to be missed or duplicated, causing errors.
Confusing Data – Distributors often drive business using different names, divisions, and subsidiaries, which can cause confusion.
Miscalculations – Miscalculations, from missing or duplicate data, can often lead to distributors being over or underpaid.
Processing Fake Claims – It is also possible for steps, such as claim validation, to be overlooked and forgotten, resulting in overpayment or passing through bogus claims.
Budgeting Complications – Incorrectly processed claims can lead to manufacturers improperly budgeting for the new fiscal calendar.
Unnecessary Waste – Whether it is money or time, you’re potentially taking away vital resources from other areas of your business that might need more help.
Human Error – All it takes is one small, incorrect keystroke and the entire claims validation, payment calculation, and revenue management processes are defective.
In addition, Ship & Debit programs that are not handled correctly can lead to distrust between distributors and suppliers. Ending with unhappy partnerships and potential issues for future transactions.
Therefore, consistent reporting tools are critical for successful channel operations. Without the proper systems in place, more problems are likely to arise.
Automating Your Ship & Debit Process
By implementing an Automation tool, you can easily centralize and streamline the Ship & Debit process while removing the risks caused by human error. Ultimately saving costs and creating new opportunities and value for your business.
Combined with easier processes, automating your Ship & Debit process can also:
- Automatically Validate Data
- Eliminate Overpayments
- Improve Reimbursement Turnaround
- Lower Overhead Costs
- GAAP Compliance
- Improve Channel Visibility
- Efficiently Track Sales Goals
Additionally, automation provides more visibility and transparency while helping build trust between suppliers and distributors.
Easily Automate With Computer Market Research
CMR’s Automated Ship & Debit is an integrated web-based module that allows you to easily manage and keep track of all your indirect sales programs.
Our software automatically configures claims based on program rules and incentives while providing detailed information that helps you evaluate the current state of your business.
Our module also includes:
- Built-In Audit Trail – Automatically audit every transaction and resolve disputes in real-time.
- Custom Program Building – Implement program goals and parameters that are exclusive to your business.
- Auto-Calculation – Compares clean POS data/SKUs to determine qualifying price adjustments.
- Auto-Validation – Instantly match calculated price adjustments against partner-submitted claims for 100% verification of reimbursement.
- Flexible Data Collection – Auto-import POS/inventory data directly from your ERP/CRM systems or partner feeds.
- Stacking Discounts – Combine multiple rebates in a single transaction and arrange based on program goals and details.
Now What?
In short, your company can no longer afford long delays or miss out on business opportunities due to improper systems.
Demo our Automated Ship & Debit Management Module today and learn how you can generate more business, build stronger relationships, and streamline your incentive programs.
Or, contact us at (702) 247-1120 or info@computermarketresearch.com if you have any questions.