Brands, retailers and consumers alike have spent the last two and a half years trying to predict and prepare for the unpredictable. This year is unfortunately no different. With profit margins tighter than ever, there is no margin for error. Today, brands and retailers are faced with rising costs throughout their supply chains and fulfillment disruptions are impacting product availability. In addition to mounting industry problems, there are five major challenges that brands and retailers face internally when taking a manual approach to the settlement management process.
The Top 5 Challenges for Brands and Retailers During the Settlement Process
- Manual Processes – We all make mistakes, whether it’s accidentally adding a zero in an Excel spreadsheet or forgetting to follow-up regarding an expiring agreement. But, lucky for us, AI and machine learning can mitigate errors like these and increase success.
- Time – There are only so many hours in a workday. Manual processes are not only error-prone, but they are overly time-consuming. Brands and retailers shouldn’t have to waste time reviewing spreadsheets or emailing potential partners every time the agreement has been updated.
- Diverse Systems – Every company uses a different combination of internal systems and processes to coordinate business strategies. When working across multiple companies during the agreement lifecycle, version control and item compatibility can cause major disruptions.
- Complexity of Data – There are numerous factors involved in every settlement. From timelines to price points, it can be difficult to coordinate all necessary data and insights.
- Lack of Transparency – A settlement will only be reached when both parties are clear on the agreement. This can create dreaded a back-and-forth to get everyone on the same page.
How gicom Provides A Path Forward for Brands and Retailers
As a result of these challenges, brands and retailers must rely on up-to-date cost calculations to inform their ever-evolving strategies and protect their margins. This includes having consistent, accurate and automatic access to all agreements and settlement transactions, as well as invoices, commissions, and bonuses.
In SAP S/4HANA the functionality ‘Settlement Management’ handles the settlement of customer and supplier rebates seamlessly and provides a centralized and standard solution for managing supplier and customer conditions. On top Condition Contract allows to store all information related to an agreement, such as parent customer, eligible partner, and contract conditions. It also contains important information, such as prices and the validity of the agreement. Companies with running SAP Settlement Management are well advised to implement the gicom solution as an add-on. This way their settlements and payments to partners are processed quickly and efficiently so bottom-line funds are always accurate for planning.
Let’s take a look at how gicom’s Real-Time Margin Calculator offerings support brands and retailers and boost their profits.
Benefits of Real-Time Margin Calculations
With gicom’s Real-Time Margin Calculator, brands and retailers know exactly where their margins stand at all times in the calculation and settlement process. By running cost analyses with the calculator during partner negotiations or when coordinating a promotion, brands and retailers have clear, accurate insights into how every decision will impact the bottom line. This streamlines and improves measurement and reporting; however, the Real Time Margin Calculator also enables companies to:
Accurately Bill Even the Most Complex Agreements
With gicom, brands and retailers can be certain that all aspects of an agreement are billed correctly. This means that bonuses, promotions, scale levels and discounts are automatically considered by gicom’s calculator, minimizing susceptibility to errors, and making sure no detail slips through the cracks.
Ensure That All KPIs Are Met
The real-time margin calculations also showcase all open and settled claims as well as their impact on the development of sales and condition income. These calculations are then analyzed and compared to the brand or retailer’s KPIs, identifying deviations from internal goals and agreements.
Save Time and Improve Margins
Finally, gicom’s Real-Time Margin Calculator creates significant time savings. Manually conducing negotiations is expensive and prone to errors. But with calculation and settlement completed automatically, brands and retailers can focus their time on optimizing agreements and improving margins.
Check out if gicom’s Calculation and Settlement Solution is Right for You!
You want to learn more about how automated settlement and agreement lifecycle management can boost your profits? Contact us today to schedule a demo.