Rebate agreement management optimization | DINOSOL SUPERMERCADOS2019-05-13T15:54:35+00:00

Project Description

Dinosol

Rebate agreement management optimization

Client

DinoSol Supermercados

Business

Retail, Cash&Carry

Sector

Food distribution

Objective

Optimization of commercial processes

Products and services

SAP ERP

“The project to improve the management of rebate agreements forms part of a set of initiatives implemented in the company with the aim of optimizing processes and having cohesive information.  Due to the volume of operations we handle, it is essential to incorporate data from rebate agreements into commercial management tools.  We have eliminated the manual accounting process, which was also conditioned by the sales department.  All this results in the reliability of operations and information, as well as gaining in efficiency.  It is fundamental to have formed a good working team together with the financial, commercial and technology departments, as well as with our partner 3Hold”

Eduardo Prieto

Chief Information Officer of DinoSol

The client

DinoSol is a totally Canarian distribution company that today employs more than 7,000 direct workers in 57 HiperDino stores, 91 SuperDino stores and 76 HiperDino Express stores. Currently, the brand is present in five of the seven Canary Islands.

In addition, through the DinoSol Foundation, it collaborates in solidarity with various actions, supporting the social development of the Canary Islands and always paying special attention to the people who form part of the DinoSol Group.

Previous situation

DinoSol Supermercados is one of the largest distribution operators in Spain, being the leader in the Canary Islands, where it operates under the brand names of HiperDino, SuperDino and HiperDino Express.

With the aim of optimizing the margin control of its products, DinoSol relies on 3Hold Technologies, experts in the distribution sector and SAP Retail solutions for the implementation of a project to improve the management of rebate agreement.

DinoSol usually works with rebate agreements linked to both the purchase and sale of its articles.

Prior to the implementation of this project, the process was managed completely manually and outside the system, posing significant management constraints.

THE CHALLENGE

The main challenges faced in the project were:

  • Include the amount of the rebate agreement in the valuation of articles and have the updated actual margin for each article.
  • Simplify the process of managing rebate agreements and speed up the settlement and billing processes.
  • Have a real-time calculation of the discounts accumulated with each supplier.
  • Facilitating the export of amounts from rebate agreement to their corresponding reporting systems.

In this way, the company would know the real net cost of each item in a simple and automatic way.

THE SOLUTION

In order to achieve the proposed objectives, a multidisciplinary team was set up with the participation of all the departments involved in DinoSol. This team was led by 3Hold Technologies, so that, working intensely for three months, was able to design and implement the current solution, with which all the objectives were achieved.

To achieve these goals, SAP Retail’s standard rebate agreement management functionality has been implemented, enabling these concepts to be included within the price schemas of purchasing and sales documents. In this way, it is possible to keep a close eye on the margins and amounts of cumulative rebate agreements.

The creation and maintenance of rebate agreements was integrated into the tool that the sales department uses regularly, minimizing to the maximum the data that the user had to report and streamlining its maintenance. In addition, users can quickly adapt to the new functionality.

The project was divided into two stages, where rebate agreements play an important role in both buying and selling.

In purchasing, the process is less critical, as the volume of transactions is lower, and all the data is available to determine the discount. The data that allows them to be included in the calculation schemes is, in most cases, the supplier, since they are registered at that level and, therefore, their inclusion in the calculation scheme is simpler. When this data is determined, it has a direct impact on the weighted average price of the item, so that the correct margin is carried forward in the sale.

The consideration of these agreements in the sale, on the contrary, becomes the most critical part of the project. The volume of data generated far exceeds that generated by purchases. Every night, tens of thousands of sales tickets from the more than 300 stores that DinoSol has throughout the Canary Islands are integrated into the system, and it is vital that any development or new functionality has the least possible impact on this critical process.

The solution developed can know the vendor who served the article being sold and, in this way, it is possible to determine the rebate agreement in the sales calculation schema and update the cost of sales. All this without affecting performance and ensuring that discounts are determined correctly.

Another very important point for DinoSol is the visibility of the rebate agreements in the company’s reporting systems.

Thanks to the implemented solution, the cost textraction of SAP ERP articles was simplified, so that DinoSol could have the updated margin in its reporting tool without manual processing of the information.

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