Rebate Trading Term Comparison

[Audio] Rebate Trading Term Comparison Between Old and New.

[Audio] Objective To assess and compare the terms and conditions of rebate trading term renewal proposals from suppliers, with the aim of optimizing benefits for Cashbuild. By evaluating and selecting the most advantageous renewal proposal, Cashbuild can maximize its rebate benefits while ensuring alignment with its strategic objectives and operational requirements..

[Audio] Contents Rebate Trading Term Comparison Between Old and New Objective Proposed Contract Comparison Process Negotiation Process Review Current Contracts Evaluation Criteria Quantify Rebate Potential Negotiate Terms Document Agreement Conclusion.

[Audio] Proposed Contract Comparison Process The Rebate Manager maintains a tracking schedule of all rebate trade agreements set to expire within a specific time frame. This tracking schedule includes: Supplier Code Supplier Name Contract period (start and end date) Current purchases value, rebate percentage, and rebate income value Procurement Manager and/or Senior Operation Executive responsible for the supplier trading terms (e.g., cement) Indication of income loss or gain, communicated after new terms are negotiated and compared to old terms A brief comment on the status of the new proposal This tracking schedule is submitted weekly until all renewed contracts are received. Please refer to Annex 1 for further details. Once the Enable system goes live, the tracking schedule will be monitored through the Enable platform..

[Audio] Negotiation Process Procurement Managers and Operation Executives negotiate new rebate trading terms with suppliers as current contracts approach expiration, ensuring this is done prior to the contracts expiring. Procurement Managers can consult with the Rebate Manager/Department to review proposed changes from suppliers. The review will be based on the supplier's past 12-month performance to confirm the profitability of the new agreement. The Rebate Manager will provide the current performance data of the supplier but will not determine profitability. Potential rebate earnings for each proposal are calculated based on historical purchasing data and volumes. Procurement Managers and/or Senior Operation Executives forward the new rebate trading terms to the Rebates Department. The new contract is then scrutinized to highlight any discrepancies..

[Audio] Review Current Contracts Understand the terms and conditions of existing contracts with suppliers. Identify key rebate structures, thresholds, and requirements. Evaluation Criteria This encompasses rebate percentages, eligibility criteria, payment terms, volume requirements, and supplier reliability. Eligibility criteria refer to the specific requirements or conditions of the supplier trading terms. Supplier reliability pertains to the supplier's ability to consistently provide the required quantity of products or materials on time, including their track record for meeting delivery schedules without significant delays or interruptions. The new rebate trading terms will be compared to those of the prior year and to the current purchase trend's forecasted rebate trading terms..

[Audio] Quantify Rebate Potential Calculate the potential rebate earnings for each proposal based on historical purchasing data and volumes. After analyzing the new proposal, all income losses need to be communicated to the relevant stakeholders. Refer to Annex 2 for the template used to calculate rebate income based on historical purchasing data and volumes. Negotiate Terms Procurement Managers/Executives and Senior Operation Executives need to engage in negotiations with suppliers to optimize the terms and conditions of the renewal proposals. The aim is to maximize rebate benefits while addressing any concerns or requirements raised by the Rebate Department..

[Audio] Document Agreement Once negotiations are complete, the supplier needs to submit the new rebate trading terms on a company letterhead and/or on Cashbuild rebate trading terms (Section 3 and Section 4). This document needs to outline all agreed terms and conditions, including rebate structures, and needs to be signed off by all relevant stakeholders. Procurement Executives must sign and approve before sending to the Rebate Department. Completed documents must be submitted to the Rebate Department within two weeks of the commencement of negotiations..