Revolution in cost management: Rebate Management

Gustaf Tanate, CEO at ISPnext, explains "ISPnext has always focused on simplifying the way organisations manage their expenses, and Rebate Management is the latest milestone for this mission. The new module enables organisations to manage bonus arrangements better, more efficiently and promptly. More optimisation opportunities than ever before."

Rebates, or discounts, are a significant source of savings for many organisations. They are offered by suppliers as an incentive for volume purchases and building long-term relationships. A challenge, however, is that managing these 'volume discounts' is often a complex and time-consuming task. Organisations struggle with tracking deadlines, verifying eligible purchases and maximising the bonuses they are entitled to.

Rebate Management is the process of managing the rebates you receive from your supplier in exchange for your loyalty or in exchange for the amount of purchases made. Typically, these are rebate programmes linked to this procurement performance. In which you receive a refund at the end of a period if you have purchased X number of items or for a specified sum. Another name commonly encountered is Bonus Management or Discount Agreements.

Often, the processing is manual, using countless elaborate spreadsheets or via a self-developed tool. This process is highly time-consuming and error-prone, as the data for the calculations is often required from several, non-integrated, systems. Another major drawback of those tools is that there is no real-time insight into the fulfilment of discount agreements. As a result, bonuses are missed and money is therefore wasted. To streamline this process, ISPnext has developed the Rebate Management module.

With this new module, ISPnext adds a key process on its Business Spend Management platform. "Rebate Management is fully integrated within our Business Spend Management platform and therefore with the customer systems." Gustaf cites the benefits of all BSM functionalities within a single application: "Thanks to the Business Spend Management platform, our customers are gaining increasing control over operational processes, real-time insight into all expenditures, but also into agreements made. One component of the agreements made are the 'volume agreements' with suppliers, also known as rebates, kick-backs or bonuses."

"We are proud to introduce Rebate Management as additional functionality to our Business Spend Management platform," Gustaf says. It impacts all facets of our BSM solutions: "Rebate Management connects seamlessly with our solutions. With Vendor & Contract Management, agreements are recorded and bonuses are calculated by using real-time spend data from invoices from AP Automation and orders from Procurement. Rebate Management is a complementary functionality through which Finance & Procurement will generate more value for the organisation in a predictable, accurate and timely manner."

ISPnext offers a single Business Spend Management platform with various solutions for the Source-to-Pay process. The organization was founded in 2000 and has built a strong reputation as a reliable and customer-centric partner. ISPnext serves clients across a wide range of industries, including manufacturing, food industry, wholesale, retail, and business services. The new module is directly integrated with the existing solutions, showcasing the power of the platform. Gustaf says, "The launch of Rebate Management at ISPnext promises to be a game-changer in the field of Business Spend Management. It enables organizations to more effectively control and utilize bonuses, resulting in significant savings and a competitive advantage. If you're seeking technology to improve your financial outcomes and enhance cost control, ISPnext is the partner to consider. The future of cost management and spend management is now, and it looks exceptionally promising."