As a manufacturer, you typically have to maintain the management of volume incentive components in multiple systems. Your contracts are created and managed in a TPM or contract application and this requires a separate application due to the need to manage dead net guardrails, workflow, approvals, renewals and accrual creation.
When you meet with your distributor, they can pass along a reduced price to their operators or deduct off payment to you and give you the money back but without understanding inventory pools, you have to trust that the volume they are claiming is accurate. Without validation, rules and inventory pools, you have no way to prove that the sell-out is more than the sell-in. How unsettling!
The accrual and claim processes require an automated validation and each hinge on understanding the volume that has been sold in and sold out in a 3-tier distribution model. Prioritizing your digitalization journey will help you automate your inventory pools and provide the opportunity to capture the volume within each tier.