Distributor Retools Sales Compensation System for Automation and Profits
A major distributor of building materials and construction supplies was using spreadsheets and desktop databases to compile metrics from invoice line-item detail to support 100+ incentive compensation plans across several lines of business. The sales organization wanted a relationship with a single vendor who could both redesign their processes for maximum efficiency and provide the software on which to do it.
The company’s profit-driven incentive compensation strategy was being hindered by the manual, inflexible nature of the existing system and its inherent deficiencies:
- The company was unable to properly validate and secure its data or processes.
- Analysts were unable to enact desired plan changes in a timely manner because the system was not easily configurable by business users.
- Payment adjustments, adjustments to sales data, and the process for assigning plans for new hires and transfers were not adequately automated to ensure error-free processing.
- Information access and reporting at every level, as well as outputs required by other departments, were all in need of enhancements.
Optymyze has deployed two of the company’s large business units and is now moving on to implement a third in the phased implementation of a hosted solution. Featuring a single data repository for all lines of business and configured to support the unique incentive compensation programs of each, the automated solution eliminates all of the shortcomings of the former manual processes:
- Automated data management processes now ensure that the data is valid, secure, and auditable.
- Business user configurability of the applications makes for a rapid response to any change in data, plans, or reports.
- Automated workflows enable tracking of plan assignments and sales andpayment adjustments and routing of this data to the correct people for review and approval.
- Interactive dashboards, alerts, and concise role-based reporting provide everyone from salespeople to senior management with timely, relevant, and actionable information that drives improved sales results. In addition, complete and accurate general ledger entries related to incentive compensation are generated automatically each period.
- Lack of Compliance Controls
- Inability to Adapt
- Inefficient Manual Processes
- Lack of Information
- Standardized Processes
- Ability to Adapt
- Efficient Processes
- Effective Communications
- Implementation Services
- Software Support