Distributor Back End Credits & Rebates (BECS)

Enable distributors to execute programs from stock with financial assurance and an easy to use fully transparent claims process.

Automate the management and workflow of distributor claims and rebates in the channel with claimIT

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One of the many value-add functions a distributor can provide to vendors and partners is to hold inventory so that partners can be fulfilled immediately on order placement. Distributors normally buy inventory at a fixed price from their vendors, however if the vendor wants to significantly reduce the price on a specific customer deal, to offer a price promotion or support an exceptional discount on a program (for example partner demonstration programs) the distributor may end up having to sell at a reduced margin or loss to get to the lower partner price.

One method to manage this reduced pricing is to place a ‘back-to-back’ order at the lower price and let the vendor supply the product at the lowered price – this however is cumbersome and delays the fulfilment. A more commonly used method is to use back-end credits (also known as ship and debit transactions) whereby the distributor makes a claim for the price difference on the vendor who typically then credits the distributor once the claim is validated.

Benefits of utilizing claimIT

  1. Operational Continuity
    Distributors can fulfil lower priced transactions from inventory and claim any adjustments once the order has been satisfied
  2. Control
    Both vendors and distributors have full visibility on the status of claim submission, validation and payment
  3. Assurance
    Because the price promotions and sales programs eligibility rules are pre-determined both distributors and vendors know the claims are already pre-validated in terms of the program rules.

Through our Distributor Claim & Rebate Management capability claimIT, vendors can:

  • Configure what offer is to be made to a distributor on fulfilment of a price promotion, sales program or special offer and determine a program code for claim reporting.
  • View and group distributor claims for easier validation
  • View and reconcile distributors’ statuses on claims to support reconciliation
  • Group claims by program type to assist review and validation (all transactions have IDs to support tracking and validation)
  • Report on claims by distributor, program type and date for easy accrual management and reconciliation.
  • Keep notes on each claim to track progress if there are any issues or open items to resolve before a claim can be validated and paid.

In addition, distributors are able to:

  • Accept reseller requests to use a promotion or program (configured on the platform) in the knowledge that the product, reseller and any other eligibility criteria have already been met
  • View the offer to them to accept the request and price accordingly, again knowing exactly what credit from the vendor they can expect when the transaction is fulfilled
  • Configure which additional fields they need to complete to support the vendor’s claim validation process (Reseller Purchase Order Number or Sales Order Number for example)
  • Submit their claims with reference numbers to the vendor online and track the status within the vendor
  • Report on claims submitted, under validation or paid at any time.

Automate the management and workflow of distributor claims and rebates in the channel with claimIT

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