{"id":14146,"date":"2025-09-03T01:03:12","date_gmt":"2025-09-03T01:03:12","guid":{"rendered":"https:\/\/enable.local\/?post_type=customer&p=14146"},"modified":"2025-09-16T03:02:54","modified_gmt":"2025-09-16T03:02:54","slug":"how-mkm-gained-better-visibility-faster-and-improved-trust-thanks-to-enable","status":"publish","type":"customer","link":"https:\/\/www.enable.com\/customers\/how-mkm-gained-better-visibility-faster-and-improved-trust-thanks-to-enable\/","title":{"rendered":"MKM"},"content":{"rendered":"\n

The Company<\/strong><\/h2>\n\n\n\n

When your branches are owner-occupied and every penny matters, how do you know which product lines are profitable or not? That\u2019s why MKM turned to Enable: to gain better visibility, faster, and improve trust with their branch owners. Trying to give the branches all the information they could possibly need is MKM\u2019s goal.<\/p>\n\n\n\n

Founded in 1995, MKM Building Supplies Ltd distributes construction materials through branches across the United Kingdom. The leading independent builder\u2019s merchant in the UK was started by an entrepreneur who took a leap of faith after having been made redundant at the age of 50. Since then, the organisation has grown by hand-picking branch directors with strong customer relationships and local knowledge. Branches are run by owner-managers with a 25% equity share in their branches and the organization operates with a very entrepreneurial mindset.<\/p>\n\n\n\n

The Challenge<\/strong><\/h2>\n\n\n\n

MKM needed a method of keeping on top of the supplier rebates they receive.\u202f\u201cIt was all being managed on an Excel spreadsheet, and we didn\u2019t have a way of checking if the payments of our suppliers were right,\u201d\u202fsays Jon Samuel, Commercial Manager.

In short, they wanted more granular access to their data on a more regular basis: weekly or even daily. \u201cWe are looking at rebates and contract management support \u2014 we call them claim backs \u2014 on a monthly basis to see the screen margin (before rebate) and through margin (after rebate)\u201d,\u202fsays Samuel. However, he knew there had to be a better, faster way of doing it.\u202f\u201cBecause we\u2019re only doing them on a monthly basis, we were waiting to see the through margin. We\u2019d wait until the 10th of the next month. By then there\u2019s not much you can do about the previous month because it\u2019s done.\u201d<\/p>\n\n\n\n

\u200dThe Software<\/strong><\/h2>\n\n\n\n

Why did MKM choose Enable?<\/strong>

MKM chose Enable because of a combination of\u202f\u201cthe people, the experience, the system and the sector-related experience\u201d,\u202fas Jon puts it, as well as Enable\u2019s entrepreneurial spirit which struck a chord with MKM.

\u201cWe chose Enable because of confidence in the guys \u2014 we were speaking to the person who built it \u2014 the founders. We liked the team; we had confidence in the consultant and Peter Hindle and the system looked great as well.\u201d<\/p>\n\n\n\n

MKM were also confident that Enable had relevant experience in their sector, since Enable was already working with other, larger merchants.

Importance of Accurate Reporting<\/strong><\/p>\n\n\n\n

In order to improve decision-making and work towards \u201ctrying to ensure the branches have all the info they could ever need, when they need it\u201d, as Samuel puts it, they needed more accurate, more timely reporting.\u202f<\/p>\n\n\n\n

Samuel says, \u201cIf you\u2019re selling a product that could go into negative screen margin, you want to have the confidence that you are making money when everything else comes back in. If it\u2019s low margin, you want the confidence that it\u2019s worth doing.\u201d

While the journey towards 100% accurate reporting with Enable is not yet complete, Samuel says, \u201cOnce we get that, we\u2019ll pass it to the branches on a daily basis \u2014 it will give them confidence that their business for the month is profitable.\u201d

Getting The Data Right<\/strong>

Building a bigger picture with the information in their systems is part of their data strategy. Samuel says, \u201cEnable fits in with that perfectly. We have all sorts of different systems from finance to the telematics in our trucks \u2013that we\u2019re trying to piece together. That\u2019s why the data is important to us.\u201d

Having compared data from different systems, they are comfortable that both are giving them the same information about their rebates, so they are now using Enable as an engine to feed into their central data repository.<\/p>\n\n\n\n

Enhancing Rebate Accuracy<\/strong>

Unlike many companies who choose to use rebate management software, MKM was actually glad to know their rebates and rebate accruals were accurate \u2014 and Enable helped them confirm this.<\/p>\n\n\n\n

\u201cWe were confident we were accruing rebates but the up-to-date reporting was most important for us. If we found rebate we were missing along the way, that was a bonus for us, really. We weren\u2019t owed a lot of money from the past three years, which is great news\u201d,\u202fsays Samuel.

From 95% to 100% Visibility<\/strong>

For 95% of their suppliers the through margin will be accurate with just the rebate. But that wasn\u2019t good enough for MKM or for Enable who wanted to know how they could get MKM to gain 100% visibility.<\/p>\n\n\n\n

Samuel says, \u201cHaving this ability to view all sales from the beginning to the end of the supply chain process is absolutely critical for us. Enable has certainly made that process much more accessible. They\u2019ve made it significantly simpler.\u201d\u202f<\/p>\n\n\n\n

He continues, \u201cEnable listened to us, are working with us, and have said, \u2018If you\u2019re not getting it 100% right, how could you? How could we help with that? Good collaboration, really.\u201d

Reducing Debtor Days<\/strong>

Samuel explains, \u201cWe\u2019ve had confirmation that our accruals are accurate. Enable produces a debtor list. Because we\u2019re confident in the numbers we\u2019re more confident to go to the suppliers. In the past, we\u2019ve waited for the suppliers to say how much they owed us. If it was accurate, great, if it was less, we\u2019d argue the point. Now we\u2019re confident in the numbers so we\u2019ll go out and ask for them. It\u2019s helped us reduce the debtor days. We\u2019re ringing them and saying, \u201cyou owe us this, let\u2019s have it\u201d. Clearly from a cash point of view it\u2019s better.\u201d<\/p>\n\n\n\n

He continues, \u201cThe accuracy of the data, of the accrual, the fact that we can be confident and therefore collect our debt quicker, and it\u2019s enabling us to see the through margin. Those are the three big things for us and together they help us make commercially-informed decisions from a product perspective, to the suppliers, to the customers, rather than going in a little blind as we have in the past.\u201d<\/p>\n\n\n\n

Special Pricing Agreements
\u200d<\/h2>\n\n\n\n

SPA Contract Support<\/strong><\/p>\n\n\n\n

At MKM, a significant portion of their SPA contracts existed in either PDF or paper formats. It was just Sally Jasper, Group Rebates Co-ordinator at MKM handling the contract support which created challenges in ensuring that all contractual agreements made directly with suppliers by various branches were consistently conveyed.  <\/p>\n\n\n\n

Jasper explains, \u201cThere were instances where critical details were overlooked, necessitating retroactive actions involving a labor-intensive manual process. This involved generating reports for the missed periods and reconciling everything. However, now that we’re consolidating everything into Enable, the process will become significantly more efficient, simplifying our ability to monitor and track these crucial contract details.”<\/p>\n\n\n\n

She continues, “Now, thanks to Enable we have a much clearer view of when a SPA contract is approaching its expiration date. Previously, there were instances where, if we didn’t have an updated contract, we mistakenly assumed it had ended, when in reality, it had been extended. Fortunately, with the Enable system in place, we can easily generate a list for our branches, allowing us to identify all the contracts that are nearing their end dates. We can now reach out to them and inquire if they require a new contract or if they can provide us with the necessary copies. This streamlined process ensures we stay on top of SPA contract renewals and avoid any unnecessary disruptions due to expiring agreements.”<\/p>\n\n\n\n

Cutting SPA Management Time by 50%<\/strong><\/p>\n\n\n\n

Jasper used to spend a significant amount of time, roughly two days, to calculate and report on their SPAs. This involved sorting through countless emails, cross-referencing the contract support materials she had received, ensuring they were incorporated into reports, running the necessary calculations, and then formatting everything to fit the requirements of their finance department.  <\/p>\n\n\n\n

Jasper says, \u201cThe introduction of Enable has the potential to cut the time required by 50%, possibly saving an entire day’s worth of work. With Enable, the calculations are readily available, making the process as simple as running a report, thereby greatly improving SPA efficiency.\u201d<\/p>\n\n\n\n

Automated SPA Claims Reporting<\/strong><\/p>\n\n\n\n

For the actual SPA claim submission to their manufacturers, the current process involves a manual extraction from the spreadsheet, transferring the relevant information to a new document, ensuring it contains only the necessary supply data, and then sending it via email for submission. Additionally, some manufacturers required a specific format, insisting that certain columns with particular numbers must be included.  <\/p>\n\n\n\n

Jasper says, \u201cThe introduction of automated claims reporting will significantly expedite this process. It will allow us to send out these submissions much more quickly, while also ensuring that they are all in a standardized format that complies with manufacturers’ requirements.\u201d

Why Would MKM Recommend Enable?<\/strong>

In conclusion, Samuel says,\u202f\u201cFrom a software and a people point of view, they\u2019re a great business to deal with. It\u2019s a combination of the people who understand the industry, which helps because, from the outside, it can be quite complicated and convoluted; and that you\u2019re dealing with the people who are the founders of the business. From our point of view that makes a massive difference.\u201d<\/p>\n\n\n\n

\u200d<\/p>\n\n\n\n

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