Rebates have long sparked strong opinions\u2014and at a recent roundtable hosted by Kevin Betts, Senior Rebate Advisory Manager at Enable, that tension took center stage. Joined by senior executives from industries ranging from food service to finance, the discussion brought together procurement leaders, commercial directors, and innovation experts for an open and honest conversation about the current state of rebates and where they\u2019re headed next.<\/p>\n\n\n\n
Let’s address the elephant in the room: rebates can be divisive. Some executives love them – they see rebates as a vital lever for strategic value creation. Others are sceptics, perhaps burned by poorly designed deals or administrative complexity. And then, of course, there are the haters.<\/p>\n\n\n\n
And that\u2019s fair. As rebate experts, even we admit that some rebates should<\/em> be hated. The kind that creates more friction than value or confuse more than they clarify. But our challenge – and our opportunity – is to redefine rebates<\/strong> so that they deliver commercial benefits and<\/em> ease of management.<\/p>\n\n\n\n We then asked each attendee to self-identify: rebate lover, sceptic, or hater? The range of answers revealed just how nuanced this topic is. Some said, \u201cit depends on the rebate.\u201d One particularly insightful contribution stood out: an attendee shared that within their current business, they love rebates that apply to direct customer sales – these offer clarity and measurable value. However, they expressed strong frustration with rebates involving intermediaries, where the data is often limited and unreliable. This lack of visibility makes it difficult to confidently monitor rebate performance and assess their commercial effectiveness, leading to a more sceptical or even negative view of those types of arrangements.<\/p>\n\n\n\n Others described situations where they had inherited legacy rebate agreements negotiated long ago by former colleagues. Over time, both trading partners had lost sight of the original purpose of the rebate, and neither particularly liked the administrative burden these deals imposed – especially given the absence of clear, ongoing benefits. Yet despite this dissatisfaction, they found it difficult to renegotiate or replace these outdated rebates. Trading partners, even if equally sceptical, often clung to the status quo, subscribing to a \u201cbetter the devil you know\u201d mindset.<\/p>\n\n\n\n A couple of attendees described how their view had changed over the years – or even varied depending on their role at any given time in their career. A rebate that\u2019s strategic and aligned with broader goals can be a game-changer; one that\u2019s unclear or unmanageable can be a constant headache.<\/p>\n\n\n\n The discussion reinforced the need for rebate design to be intentional<\/strong>, with clarity of purpose and simplicity in execution. If we are to successfully redefine rebates and increase the number of rebate lovers in the world, we need to keep this principle at the forefront of every design decision – making intentionality and clarity the rule, not the exception.<\/p>\n\n\n\n To win over the sceptics and turn the haters into lovers, we shared a definition of what \u201cgood\u201d looks like. In our opinion, a good rebate is collaborative<\/strong> – underpinned by three core attributes:<\/p>\n\n\n\n This framework struck a chord, particularly with attendees who\u2019d seen rebates go wrong due to unnecessary complexity or poor internal processes.<\/p>\n\n\n\n We also presented a few ideas based on what we\u2019re seeing out in the real world – trends and dynamics that are actively shaping the future of rebates. These are not theoretical concepts, but rather a reflection of the practical realities we\u2019re witnessing first-hand across industries and geographies.<\/p>\n\n\n\n As the discussion evolved, the topic of AI came up repeatedly – it was clearly at the forefront of many people\u2019s minds. We used the moment to introduce a provocative statement: \u201cAI won\u2019t just be a time saver in rebate management; it will eventually also become a decision maker.\u201d<\/em><\/p>\n\n\n\n This sparked one of the most thought-provoking conversations of the evening. Several attendees shared real-world experiences of working with AI – including one who currently has an ‘AI employee’ handling some basic operational tasks. The consensus? AI is absolutely becoming a time saver<\/strong>, handling repetitive tasks and surfacing insights. The group identified several practical applications where AI could add immediate value in their rebate management – such as assisting with scenario planning at the negotiation stage, enabling teams to explore all the different ways a deal could play out. There was also recognition of AI\u2019s potential to scan rebate trading data for crucial insights and trends, and to monitor outstanding rebate debt, ensuring compliance with payment terms as set out in agreements. But as for replacing human judgment, particularly in areas like relationship management and negotiation – the room was sceptical.<\/p>\n\n\n\n AI can suggest. It can model. It can flag risk. But the final call? Everyone seemed certain that this would remain firmly in human hands. The room was filled with senior decision-makers, and there was strong alignment in their view: neither they, their fellow executive colleagues, nor their investors are anywhere near ready to trust AI with responsibility for commercial trading decisions. One attendee even remarked that if AI were ever to become the decision maker, the future of negotiation would simply involve one AI speaking to another – in essence, cancelling each other out. The human element, they agreed, will always be required. Commercial decisions rely not only on data, but also on an understanding of company strategy, trading history, industry context, and the nuances of market conditions – areas where human judgement remains irreplaceable.<\/p>\n\n\n\nAre you a Lover, Sceptic or Hater?<\/strong><\/h2>\n\n\n\n
What Makes a Good Rebate?<\/strong><\/h2>\n\n\n\n
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Six Trends Reshaping Rebates<\/strong><\/h2>\n\n\n\n
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Will AI Become a Rebate Decision-Maker?<\/strong><\/h2>\n\n\n\n
Is Now a Turning Point for Rebates?<\/strong><\/h2>\n\n\n\n