Now it all adds up for
Animal Health International
AHI streamlines management of $100 million in
vendor receivables. Vistex Solutions for SAP
accelerate processes, enable real-time analysis.
"Our Vistex solution is tightly integrated into our profitability analysis, providing key insights into available chargebacks and deals."
Tim Hays
VP of Information Technology, AHI
Overview
Animal Health International (AHI) used manual processes and a complicated, unreliable custom program to manage vendor chargebacks and sales promotions. And problems were the result.
Important transaction information lagged. Calculations took too long. Visibility into available deal promotions was poor. Margins and profit were difficult to determine. Reporting was inadequate. Information provided to customers was not timely or relevant. Opportunities were being missed.
Clearly, with a need to process $78 million in annual vendor receivables, a different approach to this critical revenue stream was necessary.
Solution
To provide these capabilities, AHI chose Vistex Solutions for SAP. Leveraging core SAP technologies, Vistex Solutions for SAP take advantage of its single repository for transactional and master data, providing “one version of the truth” while streamlining all aspects of claims management.
Vistex Solutions for SAP enabled effective management of vendor chargebacks, including real-time calculation of anticipated vendor rebates to determine gross margin at time of sale, and a more efficient process for managing the collection of vendor receivables.
In addition, AHI improved its ability to manage complex promotions and deals, including percentage discounts, mix-and-match and buy-one-get-one-free. And it also gained critical visibility into promotions and opportunities for up-sell and cross-sell.
Results
With Vistex Solutions for SAP deployed, AHI was able to reduce manual errors, upgrade vendor and sales reporting, enhance the information provided to customers, and gain real-time profitability analysis of customers and vendors.
In addition, overall management of vendor chargebacks and sales promotion programs — and their profitability — was improved. With better visibility into promotions, the company was able to increase up-sell and cross-sell opportunities, and use eligibility, qualification and benefit tools to improve deals application.
The result of all these improvements? Today, AHI is able to efficiently process more than $100 million in vendor receivables annually.
About
Animal Health International
With 70-plus locations and thousands of products from more than 1,000 manufacturers, Animal Health International Inc. (AHI) is one of the leading animal health products distribution companies in North America. Focusing on companion animals, equine, beef and dairy cattle, poultry and swine, AHI provides customers with top-of-the-line products ranging from vaccines and pharmaceuticals to state-of-the-art equipment and software.
Headquarters: Greeley, CO
Industry: Wholesale Distribution
Products: Animal health products and supplies
Revenue: $1.3 billion
Locations: Distribution centers, offices and call centers across the U.S. and Canada
Vistex solutions implemented:
Solutions for SAP
- SAP Paybacks and Chargebacks