Manufacturing companies offer a lowered price of their products to the end customers via distributors to gain a competitive advantage, increase market share, popularize the product, and gain customers’ attention and loyalty. Manufacturers create Special Pricing Agreements (SPAs) for distributors to transfer the price benefit to the end customers.
Distributors send claim requests to the manufacturer based on the agreement conditions and their sales. The manufacturer audits the claim request and settles the distributor, and all the parties enjoy the fruits of increased profit margin.
But what looks simple isn’t so simple. The easy process is tremendously difficult and challenging to handle manually as-
The contract created and offered by the manufacturer is complex. It constitutes of n number of factors like minimum and maximum quantity, effective dates, cost types, credit type, etc. Calculation variables like list price, cost price and purchase price make it more complex.
Manufacturers might end up paying more to the distributors than what they deserve. Without proper reconciliation of the claim request against the negotiated conditions of the agreement, there are miscalculations and under/overpayments are made to the distributors.
Accounting for complex transactions is cumbersome.
Impact analysis of SPA with distributors is impossible without a proper implemented system or solution like Billback SPA by Vyas Consulting.
Less time for businesses to concentrate on reaching business goals as they are busy performing manual processes.
Challenging to keep track of the effective dates of the agreement & disputes with distributors due to changing conditions of the agreement.
Help The Manufacturers
All the above-mentioned challenges are taken care of by Vyas Consulting. Vyas has come up with SPA Billback Management system to help the manufacturers perform the entire billback process in the most simplified and convenient way.