SPAs & Claims
What is an SPA?
Special Price Authorization
What is the Freight Adder?
additional cost applied to products or shipments to cover freight, shipping, or related charges, either added to the product cost or invoiced to the buyer.
What are Contracts
A set of sell-side information loaded in RPS.
What is Direct Ship (DS)?
Material shipped directly from supplier to customer.
What are Authorizations
These are customer-specific cost-side quotes loaded in RPS
What is Billing Margin divided by Sales?
This formula is used to calculate Billing Margin Percent
What are Contract Expirations?
Contracts where pricing is set up to expire and require review (This protects WESCO from margin degradation caused by outdated sell-side and cost-side agreements)
What is Special Order (SO)?
Material not stocked by the branch but handled through the warehouse.
What are Retro-Claims?
Claims that can be loaded up to 6 months after the effective date
What is reduces margin?
Higher raw material prices, labor costs, or operational expense Or Selling more low-margin or discounted items instead of high-margin produc
What are Customer Rebates?
Customer programs that credit customers based on purchases over time.
What are Inventory Markups/Markdowns?
These inventory value changes are written off to COGS over time.
What are Sales Claims
The automated process that recovers the difference between Replacement Cost and Claim Cost.
What is Replacement Cost?
amount of money needed to replace an asset with a similar one at current market prices, without deducting depreciation
What is Cost of Goods Sold
A negative cost adjustment improves margin because it reduces this financial measure.
What is Restored Order History
No retro-claim is generated if an order has moved into this history type.
What is improves margin
Adjust Pricing Strategically