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  December 19th, 2023 | Written by

Insights from Enable’s State of Volume Rebates Reports for Manufacturers and Distributors

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In a bid to illuminate the dynamic realm of volume rebates in supply chain operations, Enable, the rebate management platform, has unveiled its much-anticipated annual reports for 2024. The comprehensive insights offered by the “2024 State of Volume Rebates Report for Manufacturers” and the “State of Volume Rebates Report for Distributors” shed light on the strategic role played by rebates in financial performance and supply chain operations.

Supply chain complexities are on the rise, making effective rebate management imperative for manufacturers and distributors. By fostering a collaborative approach, robust rebate management maximizes revenue streams, prevents leakage, ensures healthy profits, and minimizes disputes. Enable’s reports delve into the nuances of how manufacturers and distributors leverage volume rebates, uncovering key elements crucial for supply chain success.

The “2024 State of Volume Rebates Report for Manufacturers” emphasizes the potency of rebates as a strategy to influence customer behavior, boost revenue, and foster loyalty. The report highlights opportunities for manufacturers to enhance analytics, communication with trading partners, and reduce administrative burdens on finance teams.

Key Insights for Manufacturers:

1. Opportunities Exist for Manufacturers to Expand Rebate Programs:
– 62% of manufacturers offer volume rebate programs.
– The majority support fewer than 25 distributors, contractors, or retailers.

2. Rebate Strategies Lack Synergy with Company Goals:
– Only 4% find managing rebate programs easy.
– 36% use rebates to drive sales growth.
– 32% don’t believe their strategy is effective.

3. Improved Analytics and Communication Will Drive More Effective Rebate Programs:
– 64% believe better analytics will enhance rebate programs.
– 41% note periodic discussions with customers about rebate programs.
– Awareness and improved communication are seen as key factors.

4. Administrative Burdens Prevent Strategic Use of Rebates:
– One-third use Excel, and another third use ERPs for rebate administration.
– 55% lack a full-time rebate manager.
– 46% spend one month or more on reconciliation for year-end reporting.

The “2024 State of Volume Rebates Report for Distributors” underscores the critical role rebates play in distributor success within the supply chain. Distributors are urged to focus on improving communication, both internally and externally, and seek analytical insights for better performance visibility against goals.

Key Insights for Distributors:

1. Rebates Remain Critical to Distributors:
– 87% report rebates are critical to profitability.
– 79% consider the availability of a rebate program with a supplier important.

2. Distributors View Rebates as a Relationship Builder:
– 72% believe manufacturers offer rebates to become a preferred vendor.
– 43% know the rebate amount earned from each manufacturer.

3. Better Tools are Needed to Track Rebate Performance:
– 58% track performance against supplier goals.
– Concerns arise over accuracy, with 52% doubting they receive all earned rebates.

4. Communication Remains a Key Concern, both Internally and Externally:
– 48% report only purchasing and senior management are aware of supplier rebate programs.
– Communication gaps persist, with 33% hearing from manufacturers only when they reach out first.

As manufacturers and distributors navigate the evolving landscape, these reports serve as a compass, providing strategic insights for optimizing rebate programs and fostering stronger collaborations within the supply chain.