Wang Hong-Shaq: I haven't seen related features in many CRM software, but I've found that many domestic customers hope to include this function within the CRM for calculation (Source: http://www.lidiansoft.com). Is this a China-specific demand?
Yang Wei: The rebate system is quite complex. We've discovered that the majority of implementations require heavy customization or even complete re-development for the customer. Different industries, and even different customers within the same industry, can have vastly different rebate models.
Wang Hong-Shaq: Yes, it's very closely related to promotional policies, discount systems, and customer contracts. From a functional perspective, calculating it within the CRM might be better. However, it also has a close relationship with financial accounting, and placing it in ERP would facilitate the actual execution of rebates. It's quite a dilemma.
Huang Chunbo: This is indeed a gray area. Consider 1) who is setting the points and discounts—are they a CRM user or an ERP user? 2) How strongly are points and discounts linked to specific customer segments? 3) The difficulty and time investment required for implementation in CRM vs ERP; 4) Regardless of where it’s handled, the two systems will need to synchronize data eventually.
Gui Yi Shen: In my opinion, price protection and rebates fall under sales (supplier) policies. They are closely tied to the operational aspects of sales (purchases) in ERP, involving sales revenue and cost of goods sold. While policy management itself relates to standard customer (supplier) transactions and could be managed in CRM, the actual execution of the policy, the process management, and its impact on product costs and sales revenue may be difficult for CRM to fully cover. Managing this in ERP or SCM might align more closely with business needs.
Wang Hong-Shaq: All valid points. Hard to reach a definitive conclusion.
ConcyFung: It is a dilemma, I think the reason lies in the fact that the sales rebate business changes frequently, is highly flexible, and often operates as a "black box." It's difficult to handle in ERP because finance requires rigor while sales demands flexibility. If this is to be done, CRM would need strong integration capabilities and seamless integration with ERP. However, the system is indeed complex and places certain requirements on the software.
Guojin Hejiang: Theoretically, it seems more reasonable to place it in CRM.
Uncle Wulong: How this part is realized isn’t the key issue; the key is how many customers would actually be willing to do this.
This article comes from: Lidian Customer Management Software (http://www.lidiansoft.com)
Detailed source: http://www.lidiansoft.com/blog/post/1293.html