Frequently Asked Questions

How can I avoid over ordering when my suppliers offer tempting rebates for ordering up big by year end?

Incentives for Bad Habits

Supplier rebates are not normally offered idly. While minimum orders and order quantity and value breaks can often be justified in terms of supplier cost management, rebates often have slightly different motivations. They can be cashflow injections or ‘profit presents’ when needed. They can be addictive. They can cause you to buy too much of something you don’t really need right now and then pay for it over time after the ‘high’ of the rebate wears off.

Winning by their Rules

If vendors offer you rebates for achieving certain targets, play by their rules by all means, but you can play so that you maximise your upside and minimise your downside. By considering where in the supply cycle each product is, micq-if can help spread your over-ordering risks so that you minimise your longer term risk of creating excess stock, while gaining the full value from the rebate offered.