With our last blog about the benefits of the manufacturing cloud, you already would be aware of the importance of the manufacturing cloud and its relevance to current times where manufactures focus so much on building relationships with their vendors and partners.
Check Our Previous Blog on the benefits of the manufacturing cloud
While the salesforce manufacturing cloud has various features which can enhance your business functions and grow relationships with your partners, today we are only going to talk about one of its prominent features which is rebate management.
Why Rebate Management is important?
Rebate management is all about maintaining partner/vendor relationships. They work as loyalty or incentive programs and are paid after specific sales thresholds are met.
As a manufacturer, you might always be facing difficulties managing the supply chains. This is where rebate management can help, it will help in centralizing and tracking all your incentive programs at once and can also help in connecting and retaining the existing partners/vendors.
To understand rebate management more, let us see what parameters rebate management is mostly based on and how it can help the manufacturing industry.
Rebate Management Types
Rebate management can be of many types, it depends on the type of industry you and your partners belong to. But some of the major types which are commonly used in the manufacturing industry are as below:
1. Volume or Quantity based:
This type of rebate is the simplest of all rebate types. Here, the rebates are measured on the quantity, or the volume of products ordered. Here, the rebates are counted when the volume or quantity-based turnover target has been reached. E.g.: If your partner ordered 200-300 quantities then the rebate per unit will be $1, and if it is more than 300 quantities then the rebate per unit will be $2.
2. Revenue based:
From the term, you would already have guessed the meaning of how the revenue-based rebate will work. However, it is based on the annual revenue generated from the partner. For E.g.: If we received the order of 2 million then the rebate will be 1% of the revenue generated if it is between 2 to 4 million then it will be 1.5% of the revenue generated.
3. Year – on – Year growth:
This rebate type is based on the incremental growth in orders over time. It is calculated based on year-to-year growth. This rebate type can help in building relationships with your partners for a longer period. For E.g.: If the partner orders have increased by 10% then $1,000 will be the rebate if its more than 10% increase then it would be $2,000.
Why streamline the rebate management processes?
1. Manual linking of the actual sales data:
When you do manual linking of the sales data with your loyalty programs then there might be many possibilities of the error taking place, however doing it with rebate management can help in doing it without any errors and can easily compare the partners growth and the rebates of the previous years. This will also help in reducing the efforts and save a lot of valuable time of your resources.
2. Manual calculations, reviews & approval:
Imagine doing the rebate calculations for your 100 partners, Tedious task right? Now, imagine you must share it with your manager for every partner and get it approved? It will be very tough if we do this manually, that’s where rebate management can help you, with some predetermined calculations, it will automatically count for the members enroll in a particular rebate type and can also ease the review and approval process as it will directly share a notification/ email to the manager once the rebate is calculated and submitted for approval.
3. Lack of transparency with partners, distributors, and vendors:
With a rebate management system, the partners or vendors can have trust in the manufacturers as none of the calculations are manually done. With manual process of rebates, they will always be in doubt whether they are recognized properly or not, here, they can get the system generated emails and notifications about the total orders and all the calculations which can build trust in your partner’s mind.
4. Lack of Security:
With your manual linking of the sales data to the rebate programs you are exposing your partner’s data to a lot of your resources, this can result in a data breach. With rebate management all the sales data can be secure and as fewer resources will be needed for the entire process, you and your partners can be assured about the security of all the data.
From the above points, you would be certain that manually doing the rebate can take many months and efforts from your resources. So, we suggest you use the manufacturing cloud for a rebate management system. Salesforce rebate management can help to streamline all your problems and can make your rebate management process go smoothly without any errors.
To know more about what features salesforce rebate management offers you can check our next blog which describes how salesforce can help in building relationships with your partner through a systematic rebate management process.
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