PLUS: Sneak peek into TPM success at one of the nation's largest pasta producersExecuting meaningful trade promotions is an extremely high priority for both manufacturers and retailers, and yet studies show that the process related to them are largely broken. Consumer Products manufacturers consistently spend more than 20% of net revenue on trade promotions without realizing the expected returns for the level of spend. With so many trade programs across partner relationships, it’s impossible to see where all the money is going, let alone how much difference it’s making to your revenue. After all, there is a lot to consider in end-to-end trade management – lift, volume, costing, accruals, incentives, claims, pricing, data—the implications on the profitability and margin optimization of a consumer goods manufacturer are enormous!
- Reducing open deduction balance
- Re-allocating trade spending into other promotional activities while increasing volume
- Greater detail of spending by promotion allowing comparison of promotion effectiveness and responsibility by sales manager
- System generated accruals greatly improving the accuracy of expected liabilities
- Automatic deduction reconciliation against promotions and approved multi-level workflow based on amount
- De-commissioning multiple trade systems
Mok Manager of Solution Engineering at Vistex