SAP has released feature pack 6 for SAP Trade Promotion Management, further extending SAP leadership in consumer products sales processes
Sustaining revenue growth is priority number one for consumer products manufacturers. An essential part of a revenue growth & holistic enterprise planning capability is managing and maximizing the effectiveness of trade promotion spend to drive revenue, margin and shared success with customers.
About SAP Trade Management
SAP Trade Management is the leading fully integrated system solution for companies in the consumer goods industry to manage sales, marketing and trade promotions.
It supports sales managers and key account managers to manage their customers' profit and loss (P&L) statements across all required KPI’s and real-time data-insights to drive both internal margin growth, sales uplift and customer category growth. Guiding customers through a holistic process from sales planning, customer business planning & promotional planning to execution and settlement in ERP.
SAP Trade Management enables an effective customer business planning process for direct and in-direct customers from account plan creation, plan refinement with forecast based promotion & ‘what if’ scenario optimization through implementation & execution to post-event evaluation, reporting and analysis of plan success.
SAP Trade Management is an integral part of an end-to-end Revenue Growth Management strategy. Powering promoted sales planning and execution within a holistic enterprise planning capability, working seamlessly alongside integrated business planning, retail store execution and customer & consumer demand insights. Trade management feature enhancements and capabilities are directly informed from customer feedback and co-innovation – to provide consumer goods companies with processes & tools that solve contemporary sales planning challenges. Available with a full range of deployment options from fully managed cloud operations to on-premise implementations, integrating with SAP S/4HANA or ECC ERP systems - suiting any deployment landscape.
SAP Trade Management delivers tangible business results that makes trade-spend more effective, profitable & predictable – existing customers have achieved a 50-90% reduction in unplanned trade spend, 3-5% increased promotional sales value and significantly reduced plan preparation & administration time.
What is SAP Trade Management?
The SAP Trade Management solution with its components
- Customer Business Planning
- Trade Promotion Planning and Management
- Advanced Trade Management Analytics
enables customer planners and sales managers to plan, fully evaluate, and optimize customer plans and trade promotion activities. The new extended scenario planning functionality allows evaluation of different plan scenarios and customer assortments to develop an optimal customer plan considering internal and external business targets. Using historical data, the forecasting and optimization capabilities of SAP Trade Management supports account planners to get the best possible return on their investments.
What is the Value Add for customers
- Visibility: having an integrated tool for customer business planning enables sales planner to plan more accurately, to identify deviations of the plan faster and to react on deviations more effectively
- Dynamic planning: driving price, volume and margin towards company targets
- Integration: combined volume, margin, assortment, promotion and financial planning
- Shared insights: combining manufacturer and retailer perspectives and helps to communicate and negotiate towards customers
- End-to-end: Provides the capability to run a closed loop process, from promotion planning through execution & settlement
- Visibility: Promotional details are recorded in the system and the accruals are calculated based on timing, volume and rates
- Integration: Integration into Customer Business Planning Scenario Planning enables planners to find the best approach to reach internal and customer goals. Optimization capabilities support the development of effective promo spend.
- Controlling: The ability to match deductions to promotion invoices to speed clearing process
- Advanced Analytics: Regularly update predictive models for insights and optimization of business decisions using machine learning methodologies
- Ongoing Insights: Leverage regularly existing data and enrich over time with new demand signals to increase impact and accuracy
- Integration: End to end integration of predictive capabilities throughout the whole trade management suite
- Optimization: Turns predicted volumes into value for the manufacturer and retailer and optimizes trade spends and merchandizing activities
What is new?
SAP Trade Management Feature Pack 6 addresses the needs of globally divergent market types, where modern and traditional trade channels are both present. Focus in the feature pack is also on user efficiency – copying and re-using promotions; bulk movements in responsibility areas; applying overlapping promotions and supporting promotion optimization by product and week.
Feature Pack 6 of SAP Trade Management, was released in December 2021 and provides new innovations to improve planners’ day-to-day activities:
- Improved planning capabilities for indirect business – allocate and identify sales volume for end customers fulfilled via distributors & wholesalers, whether the customer is purchasing exclusively from one distributor or via multiple parties.
- Getting insights from internal and customer perspective including sell-out data planning and custom product hierarchy
- Pricing integration into SAP S/4HANA and ERP back ends
- Additional optimization features to develop the best tactic mix for promotions
- Enhanced re-use functionality for successful promotion activities to ensure planning efficiency & support users with rapid identification and re-use of proven tactics
When should you consider FP06?
If your market needs included product volumes being sold via indirect trade and are finding this difficult to plan or reconcile with current tools, or if you want to ensure the most efficient possible administration, re-use and rapid refinement of trade promotion plans. Further enhancements to optimization provide more options for account managers to delight their customers.
How can SAP Services and Support help you?
SAP Services are available to assist with upgrades and implementation of SAP Trade Management. From assistance in applying feature packs, to providing consulting and support for best-practice reference implementations of SAP Trade Management through it’s standard content activation service & deep product and customer implementation experience.
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