Our customer is one of the world's most reputable consumer packaged goods companies, with over 20,000 employees and approximately 38 different trading companies.
The project required the implementation of a solution for better Trade Promotion Management (TPM). It needed to be done within the timeframe of a wider project involving customer promotions, from budget definition to claim and deduction management.
The goal of the project was to reduce administrative effort and cost, and to improve the customer experience through more accurate accruals and rebate management. The project covered these main areas:
- Trade marketing plan
- Fund management
- Trade promotion definition
- Account budget control
- Promotional pricing generation
- Rebates and accruals management
- Promotion performance monitoring
The process for executing trade promotion required harmonization, so a kernel solution was created for the Group. The project involved a complex systems landscape that included CRM, BPC, BI ECC, and APO - with components based in different locations.
To reflect the collaborative nature of good TPM, Techedge developed an integrated solution involving the client’s different systems (ECC, CRM, BPC, BI) and departments.
Beginning with the definition of the trade promotion activities and conditions, Techedge underwent a thorough review of the periodical planning for the Trade Marketing Activities/Plan.
Trade promotions were defined by customer and products, or by grouping. Definition parameters included date selection (sell-in, sell-out, and validity date) and pricing details (lump sum, percentage, or fixed rate), and defined that once the budget approval occurs, the trade promotion lifecycle begins.
The new solution allows trade promotions to be approved and confirmed in the client’s SAP CRM system, while pricing conditions are generated and transferred into ECC, which allows for creation of rebate agreements.
SD Rebate Agreements are used as a system technicality to manage all promotional discounts that are deducted after the invoice is generated (Bill Back and Lump Sum). Promotional amounts are automatically accrued with every invoice issued, so that when the customer buys a promoted product clients can easily apply or claim the credit notes.
BPC integration assures the visibility of total volumes and promotes volumes as well as trade spend. Analysis of promotion performance can be done by a variety of internal areas looking to determine planned trade spend against actual sales, or accrued and settled deductions.
The project took less than a year to accomplish and helped the client achieve their goals of better TPM. After providing a high value solution in a complex landscape, the company asked Techedge to deliver additional TPM solutions in its European markets, each with different business requirements.
- Improvement of trade promotion effectiveness for all sales channels
- Superior capacity to monitor and control promotion in real-time, improving effectiveness and profitability
- Increased collaboration across all departments involved in the integrated Trade Promotion process (Marketing, Sales, Marketing Customer Service and Production)