Multi-billion dollar manufacturing company offers trade discounts to distributors to promote the sale of its products. Often, the discounts are in the form of rebate payments which are calculated by the company. The administration processes to support these programs (data gathering, payment calculation) are complex and labor intensive for the company.
The project scope included analyzing and improving the distributor rebate process and developing a portal to centralize the data components used in calculating distributor rebates. Additionally, a portion of the project focused on re-calculating rebate payments made by the company for a 6 month time period using the new process and portal. The primary goal of the project was to improve accuracy and create efficiencies, and quantify discrepancies in payments made for the 6 month period.
Core Catalysts helped the company implement a new Rebate Portal and process. Benefits include:
• On-going calculations using the new process resulted in annual bottom-line benefit of more than $350,000.
• Significantly reduces the time to calculate rebates; allowing more time for higher value work efforts, including analysis and process development
• Significantly improved accuracy and confidence in calculations
o Provides visibility and opportunity to analyze sales and deduction data not tied to or used in rebates
o Provides company with the opportunity to evaluate true program value
o Provides competitive advantage when negotiating program changes or new programs
o New validation and “guardrails” decrease the opportunity for errors
• Uncovered Sales and Deductions transactions that were not included in previous process.