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Improving Rebate Management for Roofing and Siding Companies with ERP Software

February 26, 2024

Rebate management may seem like a mundane financial process, but for roofing and siding businesses, it's a crucial one. How contractors navigate the administration of complex contractual agreements with customers and vendors can significantly sway profitability and cash flow.

Yet rebate mismanagement is all too common, needlessly leaving money on the table or even jeopardizing future business. Intricate calculations and complex contract terms frequently lead to manual inefficiencies, errors, and blind spots. These challenges are compounded by the dynamic nature of prices and other market forces.

Fortunately, there’s a solution–enterprise resource planning (ERP) software. Modern ERP solutions can streamline your rebate management, optimize your financial processes, and ultimately unlock greater profitability and efficiency in your roofing and siding business.

What Is Rebate Management? (A Quick Review)

As you know, rebates are financial incentives usually offered to customers, distributors, or retailers based on their purchases or sales volume. Rebate management refers to the processes and systems companies use to efficiently administer their rebate programs.

Rebates offer customers one significant benefit: cost savings. But for roofing and siding companies, the benefits are more wide-ranging:

  • Increased Revenue: Rebates motivate customers to move forward with roofing or siding projects and spend more.
  • Competitiveness: Rebates help companies stand out in fiercely competitive construction markets.
  • Customer Loyalty: Offering rebates to returning customers or those who refer new business is a way to show appreciation and boost retention.
  • Inventory Management: Rebates can subtly control inventory levels, boost sales of slow-moving items, or reduce excess inventory.
  • New Product Introduction: Rebates can entice customers to try new products.

Rebates are also a powerful tool for increasing sales and strengthening partnerships. However, without careful planning and streamlined processes, they can become an administrative burden that negates the benefits. Enlisting the right technology can help you navigate the rebate process.

The Problem with Traditional Rebate Management: Four Persistent Challenges

Traditional rebate management can be complicated. Gathering, reviewing, cross-referencing, and organizing relevant data from various sources like invoices, purchase orders, and sales reports is time-consuming. Complex agreements with varying rates, tiers, and conditions make it easy for anyone using manual calculations to unknowingly make errors. And monitoring compliance with these agreements requires constant attention.

Let’s take a closer look at some of the critical issues involved:

1. Manual Data Entry Opens the Door for Costly Errors

Relying on manual data entry leaves the door wide open for errors to creep in. A single digit entered incorrectly into a spreadsheet can lead to overpayments or underpaymentshurting your bottom line and straining business relationships.

2. Scattered Systems Drain Productivity

Companies often track the data needed to calculate rebates—like sales, inventory, and agreement terms—in disconnected systems and physical documents. Employees waste countless hours piecing together rebate puzzles instead of focusing on more strategic work. This disjointed approach also hampers responsiveness to customers and partners.

“We wanted a system that would encourage best practices and tighten our procedures. Epicor BisTrack was the most flexible and best suited for our business.” Dan Mauro, National Operations Manager │ Dryco Building Supplies

3. Lack of Visibility Breeds Missed Opportunities

Calculating rebates manually in siloed systems makes getting an accurate, integrated view nearly impossible. This prevents companies from responding swiftly to market shifts, negotiating better deals, accurately forecasting, and planning strategically. The result? Lost opportunities and reduced competitiveness.

4. Audit and Compliance Risks

Maintaining compliance with each rebate agreement's specific terms and conditions is extremely difficult without an integrated system. Relying on manual processes dramatically increases the risk of contract breaches, penalties, and damage to the company's reputation. Responding to audits also becomes a stressful scramble rather than a routine process.

These persistent pain points clearly illustrate the need for a better rebate management solution. Fortunately, advanced ERP systems offer a way forward.

Enhancing and Automating Rebate Management with ERP Software

ERP software helps provide the holistic visibility and seamless automation needed to overcome persistent rebate management challenges. It integrates and documents data across different systems using a centralized cloud-based platform.

Epicor ERP solutions help transform rebate management from a complex, error-prone process into a streamlined, efficient, and accurate operation:

Automating Cumbersome Processes

Epicor ERP solutions automate tedious and error-prone rebate management processes like data entry, manual calculations, and payment processing. Automation standardizes rebate calculations according to agreed terms, accelerating processing and payouts to strengthen customer relationships.

Gaining Real-Time Insights

Epicor ERP gives your business up-to-the-minute visibility into rebate management operations, enabling you to track rebate performance as transactions occur. This offers on-demand insights into profitability and cash flow, while advanced analytics tools help forecast future trends to optimize rebate programs.

ERP tools empower you with the data required to track and fine-tune rebate programs. It’s all about using data to solve problems and unlock slicker, smoother, and more automated processes. At Epicor, our approach is proactive. We equip roofing and siding companies with tools to manage rebates and address issues before they escalate.

Bolstering Compliance and Audits

ERP systems facilitate better adherence to contracts and regulations by supplying a clear audit trail for all transactions. This transparency simplifies compliance verification while recording retrieval during audits, reducing non-compliance risk, and strengthening overall governance.

Some 29% of businesses choose to adopt ERP solutions to support their compliance processes, including tracking contractual and regulatory rebate responsibilities. At Epicor, we prioritize supporting accuracy and compliance in rebate management, so roofing and siding companies can do business with confidence and precision.

Essential ERP Features for Rebate Management

Not every ERP system solves rebate challenges in the same way. Here’s a checklist of core functionalities to look for when researching the right ERP solution for your rebate management workflow:

  •  Seamless Integration: Your ERP solution should integrate seamlessly across sales, inventory, finance, CRM, and other critical systems. It should automatically sync rebate data without manual intervention.
  • Flexible Configuration: The system should make it easy to set up both standard and customizable rebate rules to accommodate unique terms and conditions.
  • Sophisticated Calculations: Your ERP should automatically compute rebates based on real-time sales data and complex formulas with complete transparency.
  • Actionable Analytics: Your solution should help provide dynamic and customizable dashboards to track key rebate KPIs and performance goals visually.
  • Full Audit Trails: Detailed logging of all rebate transactions and compliance checks should be readily accessible for audits.
  • Customer and Vendor Tracking: The system should link customer and vendor databases to monitor rebate eligibility, status, and history.
  • Streamlined Payment Processing: Rebate payments should process automatically, offering seamless reconciliation against relevant transactions.
  • Intuitive and User-Friendly: Your ERP solution should have an intuitive interface that minimizes the learning curve. This prevents fallback to manual processes.

Improving Rebate Management with Epicor BisTrack

Managing rebates, contracts, and payments in roofing and siding businesses is complex, time-consuming, and error-prone. But with BisTrack, it doesn't have to be. Epicor automates rebate calculations, payments, reporting, and compliance checks, eliminating inefficient, error-prone manual processes.

Because our BisTrack solution is curated for the building supply industry, Epicor prepares your business with predictable margins, data-driven decision-making, and error-free incentive payments.

Through close collaboration within the roofing and siding ecosystem, we build best practices directly into BisTrack—it becomes the brains behind rebate management so your teams can focus on nurturing customer relationships and pursuing new business.

Why not reach out for a BisTrack demo from the number one building supply software provider? Contact Epicor today to learn how we can simplify and manage your rebate process and boost your revenue.