Strategies and Trends Shaping the Future of Rebates

Rebates have long sparked strong opinions—and 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’re headed next.

The Rebate Spectrum: Lovers, Sceptics, and Haters

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.

And that’s fair. As rebate experts, even we admit that some rebates should 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 so that they deliver commercial benefits and ease of management.

Are you a Lover, Sceptic or Hater?

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, “it depends on the rebate.” 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.

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 Yet despite this dissatisfaction, they found it difficult to renegotiate or replace these outdated rebates.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 “better the devil you know” mindset.

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’s strategic and aligned with broader goals can be a game-changer; one that’s unclear or unmanageable can be a constant headache.

The discussion reinforced the need for rebate design to be intentional, 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.

What Makes a Good Rebate?

To win over the sceptics and turn the haters into lovers, we shared a definition of what “good” looks like. In our opinion, a good rebate is collaborative - underpinned by three core attributes:

• Mutually beneficial: It must create value for both trading partners.

• Mutually understood: The rationale and mechanics must be clear to all parties.

• Mutually manageable: Admin should not be a burden, but a breeze. Crucially, the responsibility of managing the rebate should be shared evenly between the parties.

This framework struck a chord, particularly with attendees who’d seen rebates go wrong due to unnecessary complexity or poor internal processes.

Six Trends Reshaping Rebates

We also presented a few ideas based on what we’re 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’re witnessing first-hand across industries and geographies.

1. Innovation facilitated by technology – Digitisation and automation are no longer 'nice to have' - they are the expectation of modern trading relationships. With this shift comes a growing demand for a single source of truth, streamlined communication, and automation of rebate workflows. Trading partners are increasingly unwilling to tolerate the inefficiencies and risks of the manual spreadsheet-driven world. Technology is transforming rebate execution through digital contracts, seamless integrations, and scalable tools that eliminate the friction of legacy processes.

2. Scrutiny driven by regulation – Across markets, rebates are coming under increasing scrutiny from regulators and competition authorities. Recent examples include the enforcement of unfair trading practices legislation in the EU agri-food sector and the French Competition Authority’s investigation into rebate structures in the electrical industry. These developments signal that rebates are no longer just a commercial matter - they are a matter of compliance. As a result, organizations must ensure their rebate programs are demonstrably fair, transparent, and legally sound.

3. ESG demands – Rebates are increasingly being explored as a strategic tool to support environmental, social, and governance goals. A key example discussed during the roundtable was rebates designed to incentivize the use of recycled plastic products - such as sustainable drainage components in the construction industry - to ensure that environmentally friendly quotas are met. In this way, rebates can go beyond commercial incentives and become levers for encouraging positive environmental impact and aligning with corporate responsibility commitments.

4. Real-time data – In many business functions - from inventory management to financial reporting - real-time data has become the norm. And yet, rebate management has until recently lagged behind. Embracing real-time data in this space offers enormous value. It allows trading partners to monitor target bands in the moment and know exactly where they stand as of today, without waiting until month-end or for a supplier to send over a file. This shift from periodic to real-time visibility enables more dynamic, responsive deal-making and eliminates surprises at reconciliation.

5. Artificial intelligence – Companies are beginning to dip their toes into the world of AI when it comes to rebate management. AI is being used to bolster analytics and significantly reduce time spent on onerous tasks such as reading and interpreting trading agreements. These early use cases demonstrate the technology’s practical value, and it’s inevitable that both the extent of AI adoption and the variety of its applications will grow rapidly in the years ahead.

6. Tariffs and market volatility – Uncertainty in global markets is leading many to use rebates to build flexibility into their commercial strategies. With the ever-shifting landscape of international trade, nobody truly knows what’s coming next in terms of tariffs. The most successful businesses will be those that can prepare for the unexpected. Rebates are already being used as a strategic lever to help mitigate tariff impacts - offering adaptable mechanisms to absorb costs, preserve margins, and maintain commercial alignment even as conditions fluctuate.

Will AI Become a Rebate Decision-Maker?

As the discussion evolved, the topic of AI came up repeatedly - it was clearly at the forefront of many people’s minds. We used the moment to introduce a provocative statement: “AI won’t just be a time saver in rebate management; it will eventually also become a decision maker.”

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, 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’s 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.

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.

Is Now a Turning Point for Rebates?

As the roundtable drew to a close, one thing was clear: rebates are being redefined - not just by new tools and technologies, but by the people and priorities reshaping how we do business. From AI to ESG, real-time data to regulatory shifts, the future of rebates lies in making them smarter, fairer, and more collaborative.

The conversation also served as a powerful reminder that rebate practices vary significantly across industries and organizations. There is always value in stepping outside of your own bubble to see how others are approaching rebates - borrowing ideas, rethinking long-held assumptions, and finding new ways to innovate and drive effectiveness in your own business.

If we can achieve that, we’ll build rebate programs that are not just tolerated, but genuinely valued - and in doing so, we’ll help turn sceptics and haters into rebate lovers.  

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