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Innospec Inc. is a global specialty chemicals business headquartered in Englewood, Colorado. The company manufactures and distributes innovative products to a range of industries around the world, from oil fields, fuels, refineries and power stations to personal care.

Watch Vice President of Global Business Technology, Vali Jerome, describe their complex business problems and the solution the company found to fix them.

The challenge

In 2012, Innospec were seeking a solution that could easily monitor their operations and improve business processes within the company. In a highly complex industry where compliance is closely monitored, Innospec needed to be able to monitor their operations in order to comply with industry regulations.

The variety of systems that were used made it difficult for the company to monitor trade activity, with Senior Management relying on 3 to 4 different reporting systems. This resulted in inconsistent and often inaccurate data, impacting profit margins. The limited visibility, accuracy and availability of data also made it difficult to monitor the calculation and payment of agent’s commissions.

Highlights

  • With freight expenditure costing tens of millions year, Innospec are now able to calculate the costs correctly and capture the activity within their Enterprise Resource Planning (ERP) solution.
  • They have transformed their compliance processes to keep up with complex industry regulations and stimulated growth for the company at the same time.
  • All agent’s commissions are monitored, calculated and paid within one system as opposed to separate external spread sheets.
“With the ability we now have to accurately calculate freight costs within Flintfox, we have seen a decrease in unrecovered freight charges and an increase in our profit margins. Flintfox helps us to automate our compliance processes and performance by allowing us to easily monitor the calculation and payment of commissions within one system.” Vali Jerome, Vice President of Global Business Technology, Innospec Inc.




The solution

After selecting their new enterprise resource planning (ERP) solution, Innospec looked for a solution that could be integrated with an ERP in order to consolidate their systems. Their decision to purchase the Flintfox Revenue Management solution was due to its ability to be seamlessly integrated into the ERP they had chosen to implement.

With Flintfox Revenue Management software, Innospec have complete control over the attribute values within delivery mode and payment method. Most importantly, the company can see the commission due to their agent within each sales order at the time the transaction is created, ensuring that the correct payments will be made. Automation of commissions is a critical element of the Revenue Management solution that will ensure that the requirements of the business are met.

Innospec calculates the built-in freight cost for each individual customer, with Flintfox Revenue Management they are able to define unlimited customer and item inclusions or exclusions and apply them to a specific trade agreement. Calculating the built-in freight costs is a crucial element for Innospec, as it will reduce the amount of unrecovered freight charges and allow them to capture freight costs within the ERP.

The benefits

Flinfox Trade and Revenue Management software has given Innospec:

  • Visibility of by customer and by product pricing structures to calculate freight charges while providing a report for the customer in order to deliver a detailed case about the built-in freight costs.
  • Better management of margins with volume-based and percentage discounting including minimum order quantity bracket, bundling and other customer-specific adjustments.
  • Control to include or exclude individual or groupings of agents from commissions for any date range required.
  • Automation of compliance processes including full control over Agents’ commissions, a requirement made by their external compliance monitor to aid the company in adhering to industry regulations.
  • Easily accessible, supplying accurate data in real-time to determine the true gross profit of each individual trade agreement.

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