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How Did Toyota Canada Improve Control of Incentive Compensation Management While Staying Agile?

Whether they’re selling hatchbacks to families or trucks to businesses, salespeople at Toyota Canada’s extensive network of dealerships play a crucial role in connecting with the company’s customer base. To promote outstanding purchasing experiences, salespeople are incentivized with comprehensive incentive compensation programs.

Commissions management: outsource or take in-house?

Toyota Canada had been managing its incentive compensation programs through a third-party service provider. However, this arrangement meant that the automotive company didn’t have as much visibility across commissions processes as it would like. To further enhance process transparency and compliance, Toyota Canada decided to deploy a platform-based, in-house solution.

How do you get commissions information to the people who need it?

As part of an ongoing digital transformation, the company implemented SAP S/4HANA and integrated the SAP Commissions solution with the software. Now, whenever a salesperson makes a sale, the dealership submits the deal details and data is fully integrated to SAP Commissions. The solution makes a calculation on the compensation payment due and this information is automatically transferred to SAP S/4HANA. This helps ensure that up-to-date commissions figures get to the people who need them, while enabling fast and compliant approvals processes.

How do you meet changing business needs?

With SAP Commissions in place, Toyota Canada can act faster to deliver changes in commissions processes – as and when the business requires them. It’s now quick and easy to create custom reports to fit the precise needs of budgeting and sales teams. Furthermore, in a fast-evolving commercial environment, the company is now empowered to adjust incentive compensation programs in an agile way to help it meet changing business goals. Meanwhile, fully auditable workflows help ensure compliance with regulatory requirements for commissions management.

Going local: how can regional adaptations help inspire teams?

Toyota Canada is now looking into how SAP Commissions can support geographical differences in the way it rolls out incentive compensation programs. Increased granularity in commissions processes will empower local regions to adapt to local market needs and compliance requirements. This will, in turn, help Toyota Canada deliver more successful incentive compensation programs that encourage and motivate salespeople to provide even better customer experiences.

Find out more

Learn more about how SAP Commissions is enabling Toyota Canada to run more agile incentive compensation processes.

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