
Now it all adds up for Global Auto Manufacturer
OEM built a global, error-proof vehicle incentive management program with Vistex
Overview
Vehicle incentives are critical to the automaker’s ability to compete in highly dynamic
automotive markets, where speed, accuracy and flexibility directly impact dealer satisfaction,
cash flow and customer experience. However, its incentive management process was highly
fragmented and increasingly difficult to scale. The existing environment relied heavily on
manual processes, spreadsheets, multiple third-party tools and inflexible mainframe-based
systems. Incentive rules were keyed multiple times, once for publishing and again for
settlement, creating duplication, delays and risk. There was a lack of integration between
vehicle shopping incentive information and dealer incentive claims, leading to after-the-fact
audits that revealed incorrect payouts. These errors negatively impacted cash flow and
frustrated dealers who needed real-time visibility into incentive eligibility and payment status.
The company sought a global, integrated solution that could support rapid incentive changes,
ensure accuracy upfront, reduce reliance on audits and provide transparency across markets.
Solution
The OEM selected SAP margin optimization solutions by Vistex, as the solution could be
deployed within its existing SAP ERP landscape.
With a fully integrated end-to-end incentive process, the OEM benefitted from incentive
authoring, personalized offer creation, claim pre-validation, and settlement all within SAP ERP.
Incentive information published to B2B and B2C shopping experiences seamlessly flowed
into the dealer claim process, ensuring that only valid, applicable incentives could be claimed.
The new global architecture, integrated with the auto manufacturer’s financial backbone and
accounts receivable, provides consistency, scalability, and governance across regions.
Results
By implementing SAP margin optimization solutions by Vistex, the OEM transformed a disconnected, error-prone incentive process into a structured, governed global system of record.
Key benefits realized include:
- Improved speed and flexibility, enabling faster reaction to market changes
- Elimination of incorrect payouts, significantly improving cash flow
- Automated controls that reduced operational risk
- Greater dealer transparency, including real-time incentive payment status
- Reduced dealer calls and disputes, improving dealer relationships
- Decommissioning of third-party systems, lowering overall technology spend
The company now processes approximately $100 million in incentive payments per month, with 150 incentive programs active at any time and hundreds of incentives published monthly. By modernizing its incentive management program, it brought dealers, customers, and the manufacturer closer together in a seamless buying experience.
About
Global Auto Manufacturer
As one of the world’s largest automotive manufacturers, it operates across dozens of markets with approximately 12,000 dealers worldwide.
Solutions implemented:
SAP margin optimization solutions by Vistex
– SAP Incentive Administration by Vistex
– SAP Payback & Chargebacks by Vistex
– SAP Data Maintenance by Vistex, pricing option