Originally appeared in Retail Touchpoints on March 29, 2021
Since the start of the global COVID-19 pandemic, retailers have faced new, unprecedented challenges — particularly as consumer demand and spending continues to evolve. And while some companies have experienced an overall increase in sales, such as those in the grocery business, it remains difficult for retailers of all sizes to maximize the performance of their source-to-pay cycle.
This is especially true when it comes to tracking the success of rebates, promotions and discounts. These increasingly complex programs provide a much-needed source of revenue and customer engagement, while also opening the door to potential profit leakage.
A True Net Cost (TNC) analysis is a simple yet effective tool for retailers to scrutinize their costs and margins. This analysis offers a deeper, more accurate view into the effectiveness of vendor promotions, and examines how increased sales can even mask root cause issues within the source-to-pay cycle.