How Does Automating the Processing of a Ship and Debit Incentive Program Help Businesses Grow in Success
In the introductory section of our 10-part series about the benefits of an automating ship and debit incentive program management tool, we introduced you to the fragile and convoluted condition of the contemporary B2B infrastructure and reasoning into why:
- Empathy is so imperative for a successful channel partnership.
- Vendors should never view their partners as customers.
- Business opportunities continue to dwindle.
- Automated ship and debit demonstrates empathy.
But before we get into the nuts and bolts of the series, let’s take a closer look at what exactly is ship and debit incentive program and how it helps businesses grow in success:
What Does A Ship and Debit Incentive Program Accomplish?
A ship and debit incentive program is a price adjustment rebate process that limits the risks of economic loss to a distributor. Both vendor and distributor must mutually agree on the exclusive parameters or program guidelines established in order for a Ship and Debit program to exist.
This program exists because, in many situations, a channel distributor is required to sell a vendor’s product to resellers or customers at a much lower price than its original cost—a result usually due to changing market conditions such as increased market competition, market undercutting or change in consumer demand.
Why Do Price Adjustment Programs Exist?
The ultracompetitive, multifaceted and unpredictable landscape of today’s marketplace presents manufacturers, distributors, and resellers all with a unique conundrum instability.
As competition grows, opportunities lessen and consumer demand excels production—pricing has to be modified in order to appease (and maintain) the interest of end-users. Without implementing price adjustment programs, such as ship and debit incentive program, the channel infrastructure will enviably ignite into corporate-anarchy—as a capitalist society without transparent, two-way communication between its channel partners assures more problems one would care to imagine.
Flawed Managerial Mindset
Whether it’s inadvertent, inattentive or pretentious thinking, vendors that participate in a ship and debit incentive program commonly forgo automation for a more traditional approach such as Excel spreadsheets, electronic data interchange (EDI), emails, phone calls, and an unfathomable supply of human resources to manage claims.
This ineffective, inaccurate and inconsistently managed administrative tactic hurts businesses on a multitude of levels but are simply too blind by the toxic deployment of their marketing strategy to notice.
In parts 2 thru 10 of this series, we will explain why a traditional approach to the “Ship and Debit” process unleashes a plethora of potential consequences.
In addition, we will introduce readers to CMR’s automated ship and debit management module, and the undervalued resource of opportunities it presents vendors and channel partners.