case study
iContracts™ Better Contracting Solutions Platform and Solutions Deliver Big Results for Duro Bag Manufacturing Company™. World's largest manufacturer of paper bags improves rebate accuracy by 60% with 50% fewer resources required.The Opportunity
Duro Bag Manufacturing Company, the leading provider of point-of-purchase bags and sacks in the United States and #1 manufacturer of paper bags in the world, has built its business by exceeding its customers' quality and service requirements and expectations for over 50 years, producing exceptional paper bags while maintaining the highest Safety, Service, and Quality levels. A critical component of Duro’s recipe for success is to create differentiation by offering competitive pricing as well as performance based rebating structures that benefit both Duro and their customers. However, without an understanding of the potential impact of rebate based agreements on sales, profits, and margins or the ability to accurately and transparently calculate performance and payments, Duro was taking unnecessary risk. The need was clear for an automated Rebate Management (Payment & Forecasting) solution that could effectively manage and control all aspects of their complex rebating processes.
The Solution
Armed with a detailed list of key requirements, including new practices they believed could benefit their customers, Duro Bag examined potential solutions that could meet their key objectives:
- Greater visibility into the financial impact of rebate agreement, including revenue projections and gross profit impacts
- Projection of sales volume impact by product/line to insure sufficient inventory and customer service levels
- Insight into the impact of agreements on specific customers and product lines behaviors, volumes and profitability
- Timely & accurate payment of Rebates to Customers & Brokers
- Maintenance or reduction in the level of resources needed to process and manage rebates
- Accurate and timely posting of rebate expenses and accruals
Results
Duro Bag was able to implement iContracts Better Contracting Solutions (BCS) platform ahead of schedule and the positive impact to their bottom line was immediate. For the first time, all rebates could be managed and their impact on overall sales could be seen, forecasted and adjusted quickly and accurately. Specific benefits included:
- Better understanding of gross profit at beginning and end of process
- 60% improvement in Rebate accuracy
- 75% reduction in the time required to process and pay rebates
- 50% reduction in resources needed to process and manage rebates
- Accurate and timely posting of rebate expenses and accruals
- Visibility and analysis of sales per customer volumes
- Visibility and analysis of sales per product line