Transactional Cost Reduction Program
IBC Connects consolidates many transactions into single transactions for our distributor members and supplier partners, complete with invoice level detail to improve supply chain efficiencies, enhance sales and reduce total cost of operations.
IBC Connects is a cloud-based 100% Electronic Data Interchange (EDI) program for purchase orders, invoicing and payment. This sophisticated yet easy-to-join and easy-to-use program streamlines financial accounting transactions between IBC distributor members and supplier partners. For distributor members, it’s a proven tool to grow rebates due to its compatibility with variable rebate programs that many of our suppliers offer to promote higher margin product categories. For supplier partners, one EDI connection to IBC is all it takes to process purchase orders; consolidate billing to and payment from multiple IBC distributors; improve reporting, and pave the way for their business to achieve greater sales with independent distributors in the IBC network.
Distributor Member Benefits
For most Independent distributors, the “PO-to-payment” process of transacting with their extensive supplier base is highly manual, representing a drain on their profitability. IBC Connects is a cloud-based Electronic Data Interchange (EDI) program that replaces manual data entry systems of purchasing and invoice processing.
This sophisticated, yet easy-to-use, program is compatible with most financial accounting systems via API. IBC Connects consolidates many transactions into single transactions, complete with invoice level detail to improve supply chain efficiencies, enhance sales and reduce total cost of operations.
Increased rebates paid out to Distributors
The IBC Connects program allows for the development of more refined “product category” Rebate Programs, which allows us to move from a fixed rebate structure to a variable rebate structure. Most suppliers have some higher-margin categories that they want to promote along with their higher-priced competitive product lines. Central Billing provides IBC with invoice-level detail that allows the tracking of rebates at the category level that was not previously available. This new variable rebate strategy provides great potential for adding significant dollars to your bottom line.
No Repeated Credit Applications
Once a distributor member’s credit limit is set as part of the IBC Connects program, there is no further need to be credit-approved by each and every preferred supplier participating in IBC Connects.
Operational Efficiency
All IBC supplier partner invoices come in through a secure Document Center or EDI – no lost invoices. The Document Center provides full visibility of documents that are received. Check writing is also eliminated, as the system uses a more streamlined and secure ACH process.
Visibility
IBC Connects helps eliminate discrepancies. Rebate amounts are based on valid, paid invoices, thus eliminating the need for supplier partners to produce sales reports or for distributors to look for incorrect reporting.
Platform for EDI/810 Invoices
Through the LBMX Solution Centre™, the technology platform behind IBC Connects, distributor members capable of receiving or currently receiving EDI 810 invoices will be able to connect with all IBC supplier partners participating in the program. IBC passes through to participating distributor members a small EDI connection fee that is based on a variety of factors: volume, file format, transmission method, etc.
Supplier Partner Benefits
A proven tool that significantly enhances sales and operational efficiencies for IBC supplier partners, IBC Connects reduces AR costs including bad-debt exposure, days outstanding and manual tasks while increasing scalable efficiencies and productivity. As part of the guaranteed payment agreement, IBC performs all distributor credit checks, allowing participating suppliers to quickly and easily add participating IBC independent distributors as channel partners.
With IBC Connects, purchase orders become a direct transaction between supplier and distributor member while invoicing to members and on-time payments by members to suppliers are processed electronically by and through IBC Connects. Immediate benefits include confirmed delivery of invoices and the elimination of non-payment of lost invoices. Payments by credit cards (high fees) or checks (delayed payment) disappear.
- Eliminates lost POs and missed invoices due to human error
- Streamlines and improves accuracy of order fulfilment and invoicing
- Provides reliable and timely data for inventory management
- Eliminates credit card fees
- Eliminates delays in receipt of check payments
- Guarantees payment backed by accounts receivable insurance
- Captures transaction history & details for accurate & simplified reporting
- Enables rapid sales growth without added demands on accounting staff
