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SAP Trade management FP05 – Product Category Planning – New Release

Introduction

SAP Trade Management is an Integrated, holistic Trade Management solution that enables a coordinated business process for field sales to create account-specified plans aimed at maximizing profitability that fully integrates with S&OP, Supply Chain Management, Finance, etc.

With the new Release SAP (FP05)- product category level planning is enabled. This is a big step towards what most customers are looking for provided out-of-the-box.

Currently promotions can only be created on SKU level ( FP04 and below)

 

System-demo (TekLink system)

With FP05 Creating promotions on category level provides the option to:

  • Automatically include future products of a certain category
  • Do high level planning
  • Reduce data volume in promotions (especially for LTAs with high number of products)

However note that

  • CBP Plan is still on SKU level
  • Distribution to Products has to be done on plan roll up (from Promotion to CBP Plan)
  • List price is picked up for random product during the product Category planning (out of the box content behavior)

 

New-UI screen from my company’s (TekLink) demo system) – for product-category level promotion-FP05

 

The base logic in planning functions (Roll-up and Roll-in) is:

  1. List price – the list price of the 1st SKU is picked up during promotion roll in from CBP
  2. Baseline Volume – the aggregated volume of all SKUs that make up the product category
  3. Spend$ – the spend$ from promotion is dis-aggregated based on “base volume ratio”  to the SKUs in the CBP plan during roll-up (logic can be altered)
  4. Uplift Volume – the uplift from promotion is dis-aggregated based on “base volume ratio” of the SKUs in the CBP plan during roll-up (logic can be altered)

 

 

 

 

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