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How Technology Streamlines Condition Contract Settlement

Here’s how Retailers, Wholesalers and Consumer Industries can enhance Profitability and Efficiency at the Push of a Button


In today’s complex world of retail consumer product goods, staying on top of strategy, operational expenses, documentation and agreements with suppliers and partners can be a challenging undertaking. Additionally, to analyzing data, negotiating and settling your agreements having a complete 360-degree view and seamless operation of your organization can become a near-impossible task.


Thankfully, technology has made tremendous strides, and platforms and software allow this demanding work to be funneled into a more holistic approach to management. Digital transformation sweeps the retail landscape, the need to manually manage contracts and merge data on agreements, like condition contracts and rebate agreements, will soon be a distant memory. Instead, business owners can focus that energy on optimizing their agreements, as well as their customer service and profit margins.


Still manually entering Data with your Condition Contract Management and Settlements?

It goes without saying that manually merging data on condition contracts is a drain on your resources. However, it bears repeating because many businesses still waste valuable time on that effort. In fact, according to a DocuSign survey of 1,300 contract professionals worldwide, 65% of them still use spreadsheets and email to manage agreements — most using three or more tools to perform analysis — which slows them down in those siloed systems.

When it comes to managing and settling these agreements, mistakes can be made, and components can be overlooked — or downright forgotten — if businesses choose to enter data manually. Contract components, from bonuses and advertising allowances to scale levels, settlement rebates and discounts, must be fully considered, errors occur and the processes are dramatically slowed. Thus time is lost for optimizing agreements and improving profit margins.

Instead, businesses should have the ability to perform settlement management and transactions, like costs of goods sold, seamlessly and analyze their business data in real-time so they can keep up with the digital-first nature of the world.


Are you leveraging Condition Contracts to their full Capacity?

Most retailers and wholesalers struggle to keep track of and compare current condition contracts due to the vast numbers of suppliers, customers, and products. If adequate condition contract management measures are not in place, disruptions can occur in the overall operations and negatively impact total revenue.

Condition contracts are powerful tools that allow the recording of customized conditions for suppliers, customers and products or services. This is where relevant information can be bundled to enable efficient management of agreements. From condition grantees and owners to a detailed list of beneficiaries and special conditions such as discounts or prices, the condition contract gives retailers and wholesalers control over their business relationships.

Condition contract management is highly valuable in renegotiating discounts, bonuses, advertising allowances and even subsequent remuneration. These elements can be negotiated in the form of percentages, unit rebates or fixed amounts and often depend on minimum sales and quantity.

Condition contract management can also help with refund management between business partners. Refunds are, of course, granted after certain sales targets have been met. This retroactive compensation is essential to profitability, as well as overall savings, so effective management of it is essential. Businesses need to ensure that all terms and conditions of the condition contract are honored and that the agreed compensation is granted.

If businesses cannot access all that information quickly, agreement management becomes inefficient, and it presents the probability of valuable savings being lost.


Need easy and efficient Solutions for your Agreement Management? 

Businesses in the consumer goods industries need the ability to be more responsive, flexible, and resilient to evolving standards of business, customer demands for their retail consumer products and environmental conditions.

At gicom, our solutions are engineered to support you in your end-to-end process with modern condition contract management. We offer award-winning solutions for planning, simulation, calculation, negotiation, automated settlement and distribution, and the follow-up of negotiation rounds specifically designed to increase your margins and profitability.

We’ve partnered with SAP to deliver solutions to the numerous challenges businesses face when it comes to condition contract management. Thanks to innovative solutions, like SAP Condition Contract Settlement (SAP CCS), the process is sped up and ensured that no conditions are overlooked or forgotten, allowing businesses to focus on optimizing agreements and improving margins. Our solutions enable the transfer of new conditions directly into their existing SAP system and receive automatically generated documentation, including contract documents as PDF files.

With gicom’s platform solution augmented by SAP S/4HANA, your operation can leverage the full potential with:

  • SAP CCS (Condition Contract Settlement)
  • SAP S/4HANA Settlement Management
  • SAP LO-AB (Agency Business)
  • SAP SD Rebates / SD Bonus


Further, with Enhancement Package 6 (EHP6), SAP introduced SAP CCS, which meets current requirements and is also already aligned with SAP S/4HANA Settlement Management. As a leading consulting and solution provider for condition contract management, gicom supports you in implementing SAP CCS/ Settlement Management or migrating your existing solution quickly and efficiently. We implement the new standard from SAP and realize your requirements for the successful settlement of all conditions.


Want to learn how to significantly streamline your contract management while increasing your margin and profit with the gicom platform and the additional functions from SAP CCS?

Nikolas Heitkamp

Contact : Nikolas Heitkamp