Contract Management for Retail & Consumer Goods

The Reality

To digitally evolve, retail and consumer goods companies need to rethink backend contract processes

Retail & consumer goods companies face rapidly changing customer expectations, behaviors, and loyalty that drive new business models and increased digital engagement. To meet these challenges, key stakeholders from across the organization – including brand managers, category buyers, field sales, merchandising, sourcing teams, IT, legal and others – must think differently about their contracts and the benefits of digital transforming the processes.

Let's look at rebates as an example. With manual tracking, supply chain issues, and labor shortages, monitoring all the vendor rebate programs is challenging. ICI automates the reporting of rebates for suppliers.  Automating rebate management allows retail & consumer goods companies to realize their total revenue commitments. Simply said, a company would need to sell an incremental $38M in toplines sales if they didn't collect on just $5M in already negotiated rebates!*

_{*Source: 3.62% avg profit margin from Brex.com} 

The Solution

Contract intelligence reduces revenue leakage and maximizes contract value

The retail and consumer goods sector experiences an average revenue loss of 2-4% due to contract mismanagement, according to World Commerce & Contracting. With Icertis Contract Intelligence, these missed opportunities can be reclaimed, directly impacting the bottom line. Consider a company with $1 billion in annual sales: to compensate for the typical 3% revenue loss (equivalent to $15M) due to contract mismanagement, they would need to generate an additional $418 million in sales. Icertis Contract Intelligence ensures that potential revenue leakage is minimized and profits are maximized.

_{*Source: 2023 World Commerce & Contracting Report and 3.62% avg profit margin from Brex.com}