Case Study: Bagcraft achieves $300K/year rebate savings and dramatically more profitable pricing with Blacksmith Applications

Bagcraft - Increased Accuracy of Distributor Rebate Payments Saves $300,000 Per Year

Bagcraft, a Chicago-based foodservice disposables manufacturer, faced time-consuming, inconsistent manual processes for trade, contract and deduction management—relying on Excel and their ERP—which made evaluating operator-deviated pricing and calculating net-based corporate rebates slow and error-prone. To address these challenges, Bagcraft selected Blacksmith Applications and its Blacksmith TPM solution to automate trade management, contract management, deduction management, rebates and recapture.

Blacksmith Applications implemented Blacksmith TPM with nightly integration to Bagcraft’s Lawson PRMS ERP, adding margin-based approval workflows and automated rebate payment creation. The solution cut monthly effort from over 40 hours to under one day (an >80% reduction), improved pricing profitability by reducing “bad” prices, and produced more than $300,000 in annual savings identified within the first six months.

Bagcraft

Frank McManus

Revenue Manager