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Project Description

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Client

GM Food Iberica

Business

Cash&Carry, Retail, FoodService and Export

Sector

Food distribution

Objective

Optimisation of comercial processes

Products and services

SAP

“The rebate agreements project was of a high-risk nature due to the high complexity of the changes that had to be made in the data located in SAP Retail and because we needed to strictly comply with a start-up date that could not be modified.
 We put all our trust in 3Hold because of its expert knowledge of Retail business processes and of its technical specialization of SAP Retail.
Other factors of project success were the high level of commitment that 3Hold demonstrated throughout the project and its constant service vocation.”

Joan Torres

CIO, GM Food Iberica

The client

With over 90 years of history, GM Food Ibérica is the leading company in the wholesale food distribution sector in Spain with a turnover of more than 1.1 billion euros per year. It is the only wholesaler in Spain that covers with its brands more than 2,400 references of food, convenience food range, drugstore, perfumery and bazaar. The business units of GM Food Ibérica are: Cash & Carry, Retail, FoodService and Export.

INITIAL SITUATION

For some years, GM Food Ibérica was recording in the system as rebate agreements some improvements in negotiation with suppliers. This means that these improvements were not part of the weighted average price of stocks.
This strategy, although it was very adequate to protect the margin created by the improvements in negotiation, is actually a drawback when this margin takes on a large volume, since it compromises that the commercial area takes control over costs and margins.

THE CHALLENGE

The aim of the project was to eliminate all the rebate agreements that at that time were implemented in each reference to equal the weighted average price to the net cost of the items.
This way, the company was able to know the actual net cost of each item in a simple and automatic way.

THE SOLUTION

We proceeded to equilibrate the rebate agreements. This means, we added these agreements within the effective price that were excluded before, so that the value of the net cost was the main reference.
Because of equilibrating the rebate agreements and discounts, the effective price or weighted average price was reduced.

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