Assessing the Potential ROI of Supplier Rebates
When adopting new software, companies struggle to get buy-in from the top. A rebate management system can dramatically increase revenue and growth, but demonstrating the value – the return on investment (ROI) – requires extensive information gathering.
The benefits that a rebate program can provide to your company must be carefully considered before you fully commit. Calculate return-on-investment (ROI) to determine if you are getting your money’s worth.
ROI analysis starts with identifying the customer’s current time spent dealing with supplier rebates and feeding in information such as rebate income, annual rebate deals, and the average delay in collecting rebates. We then take this rough estimate and translate it into potential ROI – we consider improvements in managing all rebates, maximizing rebates, and pursuing and optimizing future deals.
Our main struggle within the current rebate process is being able to accrue and forecast without under-accruing to stay safe accurately.
Through automated real-time data and insights, accurate forecasting, and more substantial cross-departmental alignment, IMA360 helps better manage rebate complexity. You and everyone else in the company will know exactly where you stand with rebates. Using this system, you can extend externally, allowing you and your partners to use rebates as a strategy by authoring, agreeing on, executing, and tracking deals collaboratively.
If you understand the ROI of your rebate software investment, you can create quantifiable metrics to measure the return over time and communicate ROI clearly to stakeholders.