Enable with Andrew Butt | E302

Enabling B2B rebates at scale.

In this episode of “Fintech Impact” we have Andrew Butt, Co-Founder and CEO of Enable. Enable is a platform for managing B2B rebates a problem that exists at scale. Andrew describes Enable as a cloud-based platform fostering collaboration among supply chain stakeholders, including manufacturers, distributors, and retailers, focusing on trading agreements.

Episode Highlights:

  • 01:03 Andrew shares the history of Enable, rooted in his background of building software. He recounts encountering the complex rebate management issue at a fast-growing UK distributor, where manual Excel spreadsheets were used due to ERP limitations.

  • 03:39 Andrew and Jason discuss the significance of rebates, revealing how manufacturers strategically incentivize behaviours such as volume purchasing. The impact of rebates on business models and profitability is emphasized, highlighting instances where businesses may sell below cost, relying on rebates for profitability.

  • 04:30 Andrew adds the loyalty element to rebate programs, drawing parallels with consumer loyalty programs like air miles or coffee shop rewards. The discussion emphasizes the role of rebates in fostering loyalty and influencing consumer behaviour.

  • 04:55 Jason queries Andrew about the significance of rebates in corporate profits, leading to insights that more than 75% of global trade involves rebates. Andrew highlights that for distributors, rebates make up an average of 100% of profit.

  • 06:00 Jason explores how large-scale ERP companies address rebate management. Andrew notes that while some ERPs have internal capabilities, they often struggle with complexity and lack collaborative features.

  • 07:23 Andrew and Jason discuss the reconciliation challenges in traditional systems, including conflicts, different data sets, and timing issues. This conversation underscores the importance of transparency and collaboration in overcoming these challenges.

  • 09:14 Andrew introduces the concept of automation in rebate management, emphasizing its potential to free up personnel from manual tasks and provide valuable insights for informed business decisions.

  • 10:02 Andrew explains the bidirectional nature of the platform, allowing manufacturers and distributors to propose agreements to each other. This collaborative approach involves the creation, proposal, acceptance, and tracking of rebate agreements, fostering alignment and visibility across both parties.

  • 11:24 Andrew highlights the importance of alignment across the supply chain, emphasizing that effective rebate management fosters collaboration among trading partners and how their platform serves as a tool for aligning interests, meeting customer needs, and sharing rewards to enhance overall supply chain performance.

  • 14.39 Jason explores the potential integration of rebate information directly into the platform, streamlining decision-making processes. Andrew acknowledges the evolving nature of agreements, becoming more surgical and dynamic.

  • 15:17 Andrew outlines the future trajectory of the platform, emphasizing the need to expand coverage for various types of rebate agreements in diverse industries and regions. Additionally, the platform aims to provide more insights, transforming from a simplifying tool to a strategic driver for business performance.

  • 17:20 Jason explores the concept of the platform evolving into a more dynamic marketplace where rebate agreements resemble an auction-like system for which Andrew acknowledges the potential for negotiations and dynamic offers, drawing parallels to Google Adwords' instantaneous pricing model.

  • 19:19 Andrew shares statistics on the platform's impact, citing an average ROI of 400% for customers. The ROI is measured in terms of increased revenue and margin, demonstrating substantial savings within the first 12 months.

  • 20:47 Andrew discusses the challenges related to the adoption of cloud technology within industries dealing with physical goods. The reluctance to migrate confidential contracts and profitability data to the cloud has been a constraint, hindering the pace of growth in the industries.

  • 21:40 Andrew emphasizes that the biggest challenge in the company's growth journey revolves around finding and scaling talent. The need for individuals who share the vision, understand the importance of the platform, and are willing to contribute to the company's growth has been a key focus.

  • 22:40 The excitement for Andrew lies in the transition from being a piece of software to evolving into a network. The prospect of becoming a network-driven model and the associated opportunities ahead drive Andrew's enthusiasm.

Key Points:

  1. Rebates play a crucial role in business models, with manufacturers strategically using them to incentivize behaviours like volume purchasing. 

  2. The complexity of rebate management is highlighted, with instances where businesses rely on rebates for profitability, and more than 75% of global trade involves rebates.

  3. The future trajectory involves expanding coverage for various rebate agreements, providing more insights, and transitioning from a simplifying tool to a strategic driver for business performance.

Tweetable Quotes:

  • "Rebates aren't just discounts; they strategically shape behaviours. More than 75% of global trade involves rebates, and for distributors, rebates make up an average of 100% of profit."

  • "Automation in rebate management isn't just a time-saver; it's a game-changer. Freeing up personnel from manual tasks and providing valuable insights for informed decisions."

  • “Negotiations and dynamic offers become a reality, drawing parallels to Google AdWords’ instantaneous pricing model."

Resources Mentioned:

Fintech ImpactJason PereiraFintech