Vendor Rebate Forecasting System
IBM Cognos TM1
One of the world’s largest distributors of technology products services IT resellers around the world purchases vast quantities of hardware and software from multiple suppliers worldwide. Generally, financial forecasting can be challenging enough, but this company also needed to perform quarterly vendor rebate forecasting. They wanted to be able to predict the amount of rebate earned, or projected to be earned, by each vendor and to correlate its related income and expenses with that vendor. The process was managed in a home-grown Microsoft Access-based system, with actual analysis being performed across multiple Excel spreadsheets. This process resulted in the distributor’s purchasing staff not being able to easily access the information they needed, a lack of trust in the accuracy of the final data, and an overall approach that was error-prone and difficult to manage.
The technology distributor teamed up with Revelwood, who built a IBM Cognos TM1-based vendor rebate forecasting application to improve the overall management, visibility and tracking of vendor rebates across multiple factors. The model incorporated a number of aspects of vendor rebates that were specific to the company’s business processes. The Revelwood team also built a number of custom features that allow administrators to control changes by locking the database for changes after due dates. Lastly, as a result of the project, the company now has a common data repository where all the related data is stored and can be accessed by the rebate team, by product managers and by senior executives.
In addition to the significant time savings gained by moving from an Access and Excel-based approach to relying on TM1 for managing and forecasting vendor rebates, the distributor has seen a number of meaningful benefits from converting to a performance management solution. For example, the company can now more easily and accurately report on expected rebates, and then perform comparison tracking of those forecasts to determine accuracy over time. This also enables the company to create adjustments at a top level.
With the new TM1-based solution, the distributor can ask questions such as:
- Who are my top suppliers? Which suppliers are underperformers?
- Who are my top product managers? Which product managers are underperforming and need attention?
- Who are my Top 10 Vendors on a weekly, monthly, quarterly and annual basis?
While time savings and efficiencies are often the drivers for switching over from Excel and/or manual-based forecasting “solutions,” many companies like this distributor, realize the higher level benefits—such as greater visibility and the ability to perform much more meaningful analysis—far outweigh the time savings.
With the IBM predictive analytics-based sales and marketing application, this insurance company is able to prioritize lead lists, resulting in an average 45% success rate for sales. Read More
Using IBM PCI, this B2B retailer can increase incremental sales by optimizing the advertisements it serves up to specific customers in its predictive digital marketing platform Read More
Travel & Transportation (Airline)
With an operational analytics solution in TM1, the airline is better able to identify problem areas in its operations and can understand, react to and plan for trends based on a number of variables. Read More
Media & Entertainment
Using an "ultimates" module in TM1, this entertainment company can capture the expected revenue and costs of film and TV titles and project the overall lifetime value. Read More
Real Estate Investment Trust
A TM1-based capacity planning and lease analysis solution enables this real estate company to analyze granular information by tenant, by lease and by building. Read More
Oil & Gas
Using an operational forecasting and capacity planning solution in TM1, this oil and gas company has much better visibility into its operations by pipeline, by movement and by customer. Read More
As a result of a TM1-based volume planning, demand planning and capacity planning solution, this roofer knows which plants are under-performing or over-performing and how to optimize production. Read More
Food & Beverage
With a TM1-based demand and sales planning system, this brewer can now make strategic decisions on where to invest marketing and sales support by wholesaler. Read More
With a TM1-based volume planning solution, this beverage manufacturer can now anticipate demand based on previous sales volume in many different ways. Read More
With IBM Cognos TM1, this financial services firm can more easily keep track of its clients and its assets under management to better understand how different aspects of its services are performing. Read More
Using IBM Cognos TM1, this global publisher relies on a technical planning model to perform granular, top-down planning, such as by individual subject categories and product types. Read More
With a TM1-based demand planning application, this professional services firm can analyze demand by role, project, geography and status. Read More
Since deploying an incentive compensation solution in TM1, the hotel has seen significant process efficiencies, a reduction in calculation and payout errors and improved visibility for advanced analytics. Read More
With Revelwood Lightspeed and IBM Cognos TM1 on Cloud, this investment bank extended its key financial planning and reporting information to more decision makers throughout its organization. Read More