Streamline Chargebacks to Engage a More Empowered Customer

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1 SAP Solution in Detail SAP Solution Extensions SAP Paybacks and Chargebacks by Vistex Streamline Chargebacks to Engage a More Empowered Customer 1 / 12

2 Table of Contents 3 Quick Facts 4 Better Claims Management Means Better Margins 5 Create and Manage Promotion Contracts 6 Optimize Operational Efficiency 7 Streamline Chargebacks Processing 8 Track Channel Inventory Efficiently 9 Create Competitive Advantage with Effective Co-Op and MDF Programs 10 Leverage Powerful Analytics for Critical Insight 11 Integrate with Other SAP Software 12 Benefit from Increased Sales and Fewer Errors 2 / 12

3 Quick Facts Summary To engage fully with today s empowered customers, you must effectively manage pricing contracts that frequently include provisions for claimsbased reimbursements. These important tasks can increase sales volume, market share, and promotional revenue. The SAP Paybacks and Chargebacks application by Vistex helps you efficiently administer, model, report, and analyze contracts and chargeback agreements while preventing errors and unwanted profit leakage. Objectives Streamline contract management processes Optimize trade promotion spend Manage sales and pricing contracts more efficiently Reduce claims processing costs, errors, disputes, and delays Minimize profit leakage Solution Robust support for contract authoring and administration Automated claims submission, adjudication, accrual, settlement, and adjustment Inventory tracking for claims validation and price support Advanced reporting and analytics for better visibility into programs, transactions, and processes Integration with the SAP ERP application and SAP S/4HANA for visibility into gross-to-net profitability Benefits Helps reduce overpayments Supports negotiating contract terms and conditions Evaluates profitability of contract proposals to craft better deals Supports management of contract commitments Helps increase channel partner satisfaction and loyalty Learn more To learn more, visit us online. 3 / 12

4 Better Claims Management Means Better Margins Claims management is critical to preserving margins. Manufacturers need a reliable process for validating and processing claims accurately and efficiently to maintain positive relations in the supply chain and avoid revenue leakage. Distributors and retailers must take all opportunities to recover costs, as reimbursements represent a significant portion of their profits. The SAP Paybacks and Chargebacks application by Vistex is key to maximizing profitability for both groups of professionals. SAP Paybacks and Chargebacks provides robust capabilities for managing contracts, processing claims for reimbursement, and managing market development fund (MDF) programs. Whether you refer to them as chargebacks, billbacks, ship-anddebits, rebates, special pricing agreements, or special or deviated pricing, the application helps you process those claims more quickly. It helps by automating and streamlining processes and creating more refined, sophisticated contracts while reducing the potential for costly errors. Claims may arise as a result of customer-specific pricing offered by manufacturers, as well as from promotion and marketing efforts that can be funded or reimbursed by manufacturers. Centralizing claims management for all processes enables better tracking and reconciliation, and it provides better insight into net-net profitability. SAP Paybacks and Chargebacks offers an efficient, highly automated approach to managing trade contracts, billbacks, and co-op and MDF programs. It also provides sophisticated channel inventory tracking tools. The solution enables you to reduce costs, enhance cash flow, and improve profitability for all stakeholders. Powerful analytics provide critical insight into your data. Integration with both SAP ERP software and SAP S/4HANA enables comprehensive administration of the entire process. 4 / 12

5 Create and Manage Promotion Contracts SAP Paybacks and Chargebacks helps you administer, model, report, and analyze contracts and chargeback claims that involve any type of pricing or promotional agreement. Manufacturers, distributors, and retailers can all use the software to create agreements, initiate and submit claims or receive claims, and then accrue, settle, reconcile, and adjust post-settlement. Gain visibility into true gross-to-net profitability across multiple offers Propose changes, analyze their impact on margins, and manage reviews and approvals Track the history of all contract changes to ensure auditability and regulatory compliance You can create a variety of contracts using templates and user-defined clauses of boilerplate text. You can track negotiations through redlining and versioning. The application enables you to: Leverage a single point of access and management for all your promotion contracts Improve contract creation and execution Streamline contract management and reduce errors Support the effective measurement and management of all contract commitments Manage the entire chargeback process cycle from claim initiation and receipt through settlement and beyond. 5 / 12

6 Optimize Operational Efficiency SAP Paybacks and Chargebacks supports a wide range of contract administration processes to help you optimize operational efficiency and contribute to your organization s bottom line. Contracts that you create and maintain using the application provide accurate, up-to-date pricing for processing customer orders. This helps ensure that customer orders and invoices accurately reflect off-invoice and other promotional pricing. The application also manages your purchasing contracts to establish your net acquisition cost. The software provides an intuitive display of all allocations, accruals, and settlements to help you manage your trade funds and budget. It triggers warnings when claim amounts exceed approved or available funds. It helps you track customer hierarchies and buying-group membership over time and leverage these structures to establish contract eligibility. You can use the application to monitor and analyze contract compliance during and following the effective dates of an agreement, implement any corrective changes retroactively, and apply those changes to past transactions. Chargeback calculations can be initiated from multiple types of source documents. Help ensure that all parties your suppliers, end customers, and company are properly charged and compensated. 6 / 12

7 Streamline Chargebacks Processing SAP Paybacks and Chargebacks can significantly improve the processing of chargeback claims to help you: Enhance capabilities and improve efficiency with robust back-end software combined with user-friendly front-end applications Get complete visibility into transactions, processes, and programs Retain, organize, and archive supporting documents Gain visibility into chargeback data and true margins Calculate chargeback amounts due automatically Retroactively process eligible transactions for new, back-dated programs Determine accurate cost of goods sold and know customer and product-line profitability Track and manage deductions before entries get posted to accounts SAP Paybacks and Chargebacks offers an integrated approach with automated tools to help your business effectively and profitably manage chargebacks. With SAP Paybacks and Chargebacks, data flows and workflows are synchronized and streamlined so that all cost-recovery processes are executed smoothly. All eligible transactions can be captured and processed on a timely basis, accelerating cost recovery, improving cash flow, and reducing outstanding balances. Revenue leakage associated with errors and missed opportunities is significantly reduced or eliminated. Centralized and automated management of your chargeback programs allows your program administration team to focus on execution, analysis, and alignment with business objectives. No longer will they have to spend countless hours dealing with isolated, antiquated systems or spreadsheets. Minimize lost opportunities and manual errors with comprehensive claims management. 7 / 12

8 Track Channel Inventory Efficiently SAP Paybacks and Chargebacks offers real-time tracking of all channel activity, allowing you to: Get complete visibility into inventory quantities and valuation Track inventory levels at various distribution centers as well as inventory transfers Track sales-into-channel inventory automatically from sales orders to channel partners Adjust channel inventory automatically based on processed claims and submitted point-ofsale data Use inventory pools to validate quantities for accuracy and claim pricing automatically Perform automatic price updates and revaluation of channel inventory Comprehensive tracking enables accurate product revaluation and inventory verification. Gain real-time visibility into sales, returns, and in-transit shipments Compile reports on moving inventory and current inventory status When you lack visibility into channel inventory, your business is exposed to substantial risk. With as much as 20% of your revenue tied to partner claim programs, you can lose a significant amount of money and margin with every inaccurate claim, incorrect payment, and processing error. SAP Paybacks and Chargebacks can track the quantity and value of inventory in the channel automatically. The solution accumulates sales-into-channel inventory from sales orders and deducts the quantity and value of inventory that channel partners claim or report as sold. Manufacturers can use this inventory data to validate chargeback claims. When manufacturers announce price reductions and offer price protection for products previously purchased at higher prices, the software can automatically generate the resulting reimbursement. It then revalues inventory on hand at the channel partner for future claim validation and price protection. 8 / 12

9 Create Competitive Advantage with Effective Co-Op and MDF Programs SAP Paybacks and Chargebacks consolidates program data in a single software system, enabling you to: Manage processes from enrollment to payment with built-in administration tools Improve planning and accelerate development of new programs Reduce time to payment with tools to manage requests and claims Automate checkbooks and manage funds and balances Reduce costs and minimize errors, disputes, and delays with integrated processes Gain a detailed view of claims and related data Resolve inquiries and speed validation with advanced drill-through capabilities Increase reseller satisfaction and loyalty with improved, accelerated, and error-free processes In today s hypercompetitive market space, the difference between growth and decline can be determined by how effectively co-op and MDF programs are managed. Spreadsheet-based processes do not have integrated access to upto-date, accurate financial data and can t deliver the data necessary to assess performance, understand spend, or determine partner utilization. SAP Paybacks and Chargebacks provides the tools to manage complex co-op and MDF programs with comprehensive capabilities. They include support for setup and configuration, planning and budgeting, enrollment, allocation, workflows, approvals, online claim processing and validation, payment, and sophisticated security and financial controls. A global framework facilitates programs with multiple languages, multiple currencies, and local business rules. Manufacturers use the solution to establish fixed or variable budgets, validate claims, and meter fund usage throughout the duration of the program. Channel partners use the solution to track budgets, monitor variable budget accruals, generate claims, and track reimbursements. Manage co-op and MDF processes with built-in administrative tools. 9 / 12

10 Leverage Powerful Analytics for Critical Insight SAP Paybacks and Chargebacks offers exceptional, real-time visibility into transactions, processes, and programs, as well as into true profitability. Powerful analytical tools, dynamic dashboards, and customizable reports provide the ability to drill down, manipulate, and examine data enabling you to look at the numbers from your perspective, the perspective of your customers and partners, and by program, category, brand, or SKU. The solution s consolidated data repository supports exceptional auditability and stringent financial controls. In addition, all supporting documentation is retained, organized, and archived to provide full data lineage and backup for dispute resolution. SHARE INFORMATION ACROSS YOUR ORGANIZATION SAP Paybacks and Chargebacks becomes an integral part of your SAP software environment, sharing data without interfaces or data replication. The solution helps you share contract and claims data among your sales, procurement, Share contract and claims data among sales, procurement, finance, and HR departments. finance, and human resources departments. You can drill down into transactional data to view a clear audit trail of chargeback accruals and settlements to meet financial reporting and accounting compliance requirements. Because the application integrates with the workflow functionality of the SAP NetWeaver technology platform, you can electronically route contract changes and calculations of chargeback settlements as well as adjustments for management review and approval. 10 / 12

11 Integrate with Other SAP Software With SAP Paybacks and Chargebacks, all processes are embedded in the SAP ERP application, and all transactional and financial data is stored in a single repository. The software can eliminate integration costs associated with SAP ERP and simplify ongoing maintenance and upgrades. And because it integrates with SAP ERP, SAP S/4HANA, and SAP NetWeaver, you have flexible deployment options that help ensure a low total cost of ownership. SAP Paybacks and Chargebacks can also use data from non-sap software sources and integrate with third-party systems using tools offered by SAP NetWeaver. Improve customer engagement with clean data and automated processes. To help you analyze chargeback programs and report results, SAP Paybacks and Chargebacks offers standard operational reports and an intuitive ad hoc reporting tool. You can export contract and chargeback data to the SAP Business Warehouse application for a wide range of analytical reporting options, including use of SAP BusinessObjects business intelligence solutions, to create executive dashboards and comparison and trend reports. SAP Paybacks and Chargebacks provides the functionality to load external data into the software system for calculation of the chargeback amount. Raw data can be loaded, cleansed, versioned, and validated prior to its use in calculating amounts. SAP Paybacks and Chargebacks can be combined with the SAP Incentive Administration application by Vistex to expand the types of other go-to-market programs that can be managed. SAP Incentive Administration provides tools for managing sales and purchasing rebate programs, sales commissions, incentive compensation and bonus plans, and royalty payments. 11 / 12

12 Benefit from Increased Sales and Fewer Errors SAP Paybacks and Chargebacks has a proven track record with SAP customers around the world. Customer experience shows that by using the application to manage your chargebacks, you can increase promotional sales, optimize opportunities for cost-recovery claims, and reduce payback errors and overpayments. The software can help you decrease manual administrative work, reduce the cost of goods, improve cost-recovery cash flow, and minimize working capital requirements. Using the software, you can improve channel partner satisfaction and loyalty, thereby increasing the profitability of your relationships. With SAP Paybacks and Chargebacks, your sales force can spend less time on administrative tasks and more time engaging with customers. The application can lower total cost of ownership by using technology investments you already have. You can install it quickly to meet changing sales and business demands, adapt it to your specific sales needs, and readily use new functionality to make your sales team even more productive and effective. Cut costs and boost profits by minimizing administrative resources. 12 / 12

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