trade management overview roadmap 2015
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Trade Management Overview Roadmap 2015TRANSCRIPT
SAP Trade Promotion Management
April 2015
© 2012 SAP AG. All rights reserved. 2
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
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and SAP's strategy and possible future developments, products and or platforms directions and functionality are all
subject to change and may be changed by SAP at any time for any reason without notice. The information in this
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document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational
purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this
document, except if such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Legal disclaimer
Agenda
Solution Overview
Solution roadmap
References
© 2012 SAP AG. All rights reserved. 4
Consumer Products Value MapSAP Solutions enable the Consumer-driven Enterprise
Sustainable Innovation Procurement Excellence Responsive Manufacturing The Real-Time
Supply Chain
Brand & Channel
Management
Consumer Dialogue
Brand Management
Trade Management
Sales Management
Procure to Pay with Business
Network Collaboration
Commodity Management
Continuous Products and
Service Innovation
Commercial Project
Management
Integrated Product Development
Product Safety and Stewardship
LEAN Manufacturing
Outsourced Manufacturing
Production Planning and
Execution
Process Visibility & Performance
Integrated Business Planning
Demand Driven Supply Network
Logistics & Order Fulfillment
Supply Chain Monitoring
Omni-Channel Management
Business Network
Extensions for Procure to Pay
Strategic Sourcing & Supplier
Management
Quality Management and
Compliance
FinanceFinancial Planning and
Analysis
Accounting and Financial
Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
People and TalentCore Human Resources
and PayrollTalent Management
Time and Attendance
Management
Workforce Planning and
Analytics
IT ManagementApplication Lifecycle
Management
IT Infrastructure
ManagementIT Service Management IT Strategy and Governance
IT Portfolio and Project
Management
Technology &
PlatformBig Data Real-Time Enterprise Real-Time Analytics Enterprise Mobility
Enterprise Information
ManagementApplication Integration Cloud Solutions
Demand Signal
Management
© 2012 SAP AG. All rights reserved. 5
Where did we invest over the last 10 Years?
Account and Trade Promotion Planning
Trade Funds Management
Trade Promotion Planning
Accelerated Trade Promotion Planning powered by SAP HANA
Integrated Marketing Calendar
Integration with Demand Planning (APO)
Trade Promotion Optimization
Trade Promotion Execution and Settlement
Integration with ECC
Trade Claims Management
Trade Promotion Effectiveness
Retail Execution
© 2012 SAP AG. All rights reserved. 6
Recent Innovations that enable the End-to-End Process
SAP Accelerated Trade Promotion Planning powered by
SAP HANA
In-memory trade promotion planning for end users to plan
large and complex promotions and meet KPIs
SAP Trade Promotion Effectiveness
Analyzes the effectiveness and efficiency of trade activities
and Funds Checkbook
SAP Retail Execution
Empowers Sales Force with mobile tools to optimize and
execute their customer visits
SAP Trade Promotion Optimization
Leverage understanding of shopper demand to predict
future purchasing behavior and financial impacts of price,
promotion, and merchandising decisions
SAP Demand Signal Management
Daily visibility into consumer sales performance (sell-out)
© 2012 SAP AG. All rights reserved. 7
SAP Accelerated Trade Promotion Planning powered by SAP HANA
Improve accuracy of trade
spend allocation
Allocate promotion spend on a
granular day level instead of
by week or month
Accelerate planning of
trade promotions
Run any size of promotion
instantly
Build highly tailored
promotion plans
Glean insights from working with
granular product and SKU data
instead of overall product category
© 2012 SAP AG. All rights reserved. 8
Simplicity
A B
Web UI User interface improvements
Increased usability via features like Multi-cell update and Copy paste from Excel
Accelerated Trade Promotion Planning, Edition for Microsoft Excel
Provides a simplified set of key functionalities for planning trade promotions.
Offers a flexible and familiar platform for targeted users.
Proposes streamlined trade promotion planning activities in one workbook
© 2012 SAP AG. All rights reserved. 9
SAP Trade Promotion Optimization provides visibility
Assess planned revenue, volume and
profitability for the manufacturer and channel
partner
Predict and suggest optimal price and
merchandising decisions based on goals and
objectives
Determine optimal programs and promotions
given planned spend and available budgets
Enable common view on sales baseline
■ Decompose volume – baseline v.
incremental, promoted v. non-promoted
■ Assess impact of promotion activity on
category and customer
■ Monitor model and forecast accuracy
■ Enable common view on sales baseline
Forward Looking Performance
Guidance
Backward Looking Performance
Analytics
© 2012 SAP AG. All rights reserved. 10
Integrate, Harmonize, Provide and Analyze
SAP Demand Signal Management
10
SAP Demand Signal Management, powered by SAP HANA, contains a consistent, centralized in-
memory database that stores, integrates, cleanses, and harmonizes large volumes of data from
disparate data sources, such as Point-of-Sale (POS) data from retailers, as well as market research
(syndicated) data and others.
SAP
TPO
Retailer
POS Social
Media
Market Research
data (e.g. Nielsen)
Distributor/
WholesalerSAP
Business Suite
SAP Demand Signal Management
Linking additional external
information (e.g., weather)
© 2012 SAP AG. All rights reserved. 11
The Value to Your Business
Improved Sales Performance
Develop optimal sales and promotion plans balancing across
volume, revenue, and profit objectives
Elevate your sales team’s effectiveness with easy-to-use predictive
capabilities
Improve sales and promotion plan forecast and accuracy with
automated forecasts and advanced analytics
More Effective Trade Spending
Optimize promotion performance
Fully leverage available budget
Meet manufacturer and retailer objectives
Stronger Collaboration
Transition fact-based promotion planning with retailers from post-
event to pre-event
Demonstrate joint value/profitability with channel partner
Account and Trade Management
Business Processes
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
Response to market activities
Plan Sell AnalyzeExecuteOptimize
Sales target development (volume & value)
Spend quota development
Funds allocation & management
Commercial planning
Price list & assortment
Account volume & revenue planning
Promotion planning
Pre-evaluation
Sell-in with customers
Promotion communication to Field sales
Retail execution activities
Execution
Financial accrual
Claims & settlement
Pay-for-performance validation
Account pre/post-evaluation
Promotion pre/post-evaluation
Market & category analysis
Funds analysis
© 2012 SAP AG. All rights reserved. 13
Account and Sales Planning Process
01 Receive High
Level Targets
02 Break down
targets to planning
Level
03b Baseline +
Assortment Planning
04 Promotion
Planning
05 Review against
targets
06 Handover to
other apps
02a Central Price
and Condition
Planning
03a Account specific
Price and Condition
Planning
Cycle
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
1.1
Sales Planning1.2 Budgeting
1.3
Deal Mgmt.
1.1.1 Marketing
Alignment
1.2.1
Funds with
budgets set-up
1.3.1 Headquarter
Deal setup
1.1.2
Sales target
development
(volume and value)
1.2.2 Fund Closing
1.1.3 Spend quota
development
1.1.4 Commercial
conditions review
1.1.5 Establish
Promotion
Guardrails
1.1.2.1 Maintain volume target by account & category
1.1.2.2 Maintain monetary target by account & category
1.1.2.3 Agree on volume target by account & category
1.1.2.4 Agree on monetary target by account & category
1.1.3.1 Maintain spend quota per account & category
1.1.3.2 Agree on spend quota per account & category
1.1.4.1 Agree on price strategy
1.1.4.2 Agree on growth per region/account/market
1.1.4.3 Agree on service levels
1.2.1.1 Maintain live rate percentages
1.2.1.2 Maintain fixed funds
1.2.1.3 Agree on live rate percentages
1.2.1.4 Agree on fixed funds
1.2.2.1 Review Accruals / Reserved / balances
1.2.2.2 Relieve unused accruals
1.2.2.3 Relieve unused (pre-) reserved balances
1.2.2.4 Close Fund
Main Requirements
So
luti
on
Gap
s
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
2.1
Commercial
Planning
2.2
Price List &
Assortment
2.3
Account
Volume/Rev
enue
Planning
2.4
Promotion
Planning
2.5
Pre
Evaluation
2.1.1 Market-
trade
channel &
account -
development
analysis
2.2.1 Price
Maintenance
2.3.1
Baseline
Volume/Rev
enue by
account &
channel
2.4.1 Create
Long Term
Promo (E.g.
EDLP)
2.5.1 Confirm
Promotion
guardrails
2.1.2 Review
commercial
terms
(non-
promoted
spends)
2.2.2
Assortment
Maintenance
2.3.2
Channel &
account
scenario
planning
2.4.2 Create
Short Term
Promotion
for date and
product
2.5.2 Budget
availability
check
2.2.3
Commercial
terms
Maintenance
2.3.3
Forecast/Pla
n Value by
account &
channel
2.4.3
Review/adju
st in
Calendar
2.5.3 Review
profitability vs
Sales Target
2.5.4 Trade
Promotion
Plan
Approval
Main Requirements
2.1.2.1 Internally agree on price strategy/increases/terms
2.2.1.1 Maintain price changes
2.2.3.1 Maintain commercial (trading) terms
2.3.1.2 Incorporate market and account trends
2.3.1.3 Incorporate new and retired items
2.4.2.3 Create promotion
2.4.2.6 Maintain causals (retail aspects of the trade promotion)
2.4.2.8 Plan trade spends
2.4.2.9 Plan uplift volume
2.4.3.3 Review and adjust promotions in calendar
2.5.3.2 Review profitability of individual promotions
2.5.3.4 Review profitability of total promotion plan
2.5.4.1 Review total promotion plan
2.5.4.2 Submit for approval
2.5.4.3 Approve
2.5.4.3 Pre-reserve fund budgets from applicable funds
2.5.4.4 Send promotion information to Demand Planning
© 2012 SAP AG. All rights reserved. 16
Account & Promotion Planning – Optimization Example
© 2012 SAP AG. All rights reserved. 17
Account & Promotion Planning – Optimization Example
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
Main Requirements
3.1
Sell-In with
Customer
3.2
Promotion
communication
3.1.1 Joint Review
with Customer
3.2.1
Communicate
Customer plan to
field sales
3.2.2 Release
Promotion plan
3.2.3 Establish
Discount and
Rebate
Conditions
3.2.4 Reserved
investment from
Funds
3.1.1.1 Joint review of account calendar
3.1.1.2 Joint review of Plan including retailer KPIs
3.1.1.3 Joint review retailer profitability
3.1.1.4 Negotiate promotion frequency & depth of investment
3.1.1.5 Refine plan
3.1.1.6 Reach agreement
3.2.1.1 Share the promotional plan with field sales
3.2.1.2 Share promotional merchandising information
3.2.2.1 Send promotion information to ERP
3.2.2.2 Send promotion information to APO
3.2.2.3 Send promotion information to S&OP
3.2.2.4 Prioritize promotion information relevant for Retail Execution
3.2.2.5 Send promotion information to Retail Execution
3.2.3.1 Send discount information to Sales and Distribution
3.2.3.2 Send rebate information to Sales and Distribution
3.2.4.1 Move funds reservations from pre-reserved to reserved
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
Main Requirements
4.1
Execution
4.2
In-store
promotion
compliance
tracking
4.3
Financial Accrual
4.4
Claims &
Settlement
4.1.1 Sales Order
& delivery
4.2.1 Create
Promotion in-
store tasks
4.3.1 Calculate
financial accrual
4.4.1 Proof of
performance /
compliance
collection
4.1.2 Billing
4.2.2. Send
promotion tasks
to Retail
execution
4.3.2 Post
financial accrual
4.4.2 Deduction
clearing
4.1.3 Purchasing
4.2.3 Capture
promotion
compliance in-
store information
4.3.3 Reverse
Financial accrual
4.4.3 Process
Invoice Claims
4.1.4 Update
Funds with
Financial
discounts
4.2.4 Review /
Analyze in-store
compliance
information
4.3.4 Release
unused accrual
4.4.4 Settle
Claims
4.4.5
Chargeback,
write off, correct
or cancel
4.1.4.1 Post updates from Billing into funds
4.2.1.1 Create specfic tasks for each tactic
4.2.2.1 Send tasks to REX for compliance checking
4.2.3.1 Capture promotion compliance in-store information
4.2.4.1 Review / Analyze in-store compliance information
4.4.2.6 Update checkbook approved claimed amount
4.4.4.5 Update checkbook settled amount
Sales Planning & Budgeting
Account & Promotion Planning
Sell-in & Negotiation
Execution, validation & Settlement
Evaluation & Analysis
5.1
Account
Pre/Post-
Evaluation
5.2
Promotion
Pre/Post-
Evaluation
5.3
Market &
Category
Analysis
5.4
Funds Analysis
5.5
Promotion
library
5.1.1 Account
Profitability &
Effectiveness
5.2.1 Promotion
Profitability &
Effectiveness
5.3.1 Market &
competitor
Analysis
5.4.1 Funds
Checkbook
5.5.1 Identify
top/bottom
promotions
5.1.2 Account
Financial
Analysis
5.2.2 Volume
Decomposition
5.3.2 Price
Elasticity
Analysis
5.4.2 Funds
Consumption
5.5.2 Identify
most effective
tactics
5.3.3 Category
Analysis
5.4.3 Balance
Funds Analysis
5.5.3 Build
Promotion
Library
5.4.4 Budget &
Transfer
analysis
2013/2014 FUTURE DIRECTION
Customer Business Plan (CBP)
TPM in Fiori
Improved Account and Promotion Planning
Trade Promotion
Assessment and Optimization
Promotion Execution Enhancements
Trade Promotion Management in Memory
Planning
Integration with S&OP
TPM in the CloudNew Listing Front-End
Usability EnhancementsTPE integrated Demand
Data
CP-Retail Collaboration
Account and Trade Promotion ManagementRoadmap Overview
Prio 1
Unilever SCDP retrofits SCDP retrofit extensions
Trade Management Footprint
F1
Montreal
100+ customers
50+ customers live on CRM 2007 or 7.0
16000 users
All tiers represented, mainly large enterprises
Consumer products, but also other industries selling over-the-counter
Global distribution due to multi-language ad multi-currency system
(North America 40%, Latin America 5%, Europe 45%, Asia/Pacific 10%)
© 2012 SAP AG. All rights reserved. 23
Customer Feedback:
SAP is 1st in seven categories
1st in Supply Chain Planning
1st in Supply Chain Execution
1st in Enterprise Resource Planning
1st in Customer Relationship Management
1st in Trade Promotion Management
1st in New Product Development & Introduction
1st in Business Intelligence
Source: - http://consumergoods.edgl.com/2013-readers-choice
© 2012 SAP AG. All rights reserved. 24
Trade Promotion Management
SAP rated #1 in category
Trade Promotion Management.
• Summary
• Survey demographics
• Supply Chain
Execution
• Supply Chain
Planning
• Customer Relationship
Management
• Trade Promotion
Management
• Enterprise Resource
Planning
• New Product Dev
and Introduction
• Business Intelligence
“The real priority is to improve promotional outcomes. It is a journey. TPM is a big component of that and TPO
will be as well. But, the endgame is better promotions and that should be kept clearly in mind because it isn’t
about the technology. It is about the business process.” (Dale Hagemeyer, Gartner)
"Our goals were to enhance our insights for planning, improve our budget management, and give ourselves the
ability for integrated analysis and reporting [using SAP software]. The key takeaways: We did it. It works. And, a
week after we deployed it our users said, ‘we like it and it’s easy to use.‘” (Jeff Dahl, Pepsico)
http://consumergoods.edgl.com/2013-readers-choice/trade-promotion-management
© 2012 SAP AG. All rights reserved. 25
Standing Out in a Sizzling Marketplace with
SAP® Trade Promotion Management
Company
Johnsonville Sausage, LLC
Headquarters
Sheboygan Falls, Wisconsin
Industry
Consumer products
Products and Services
Number one United States brand of
bratwurst, Italian sausage, smoked-
cooked links, and fresh breakfast
sausage links
Employees
>1,400
Web Site
www.johnsonville.com
Objectives
Retire homegrown legacy planning solutions that cannot support future plans for growth
Align regional processes
Increase flexibility in deal creation, reporting, and innovation to sharpen competitive edge
Establish processes for data collection, data management, and reporting to increase productivity and accuracy
Improve understanding of the return on investment (ROI) of trade promotion spend
Why SAP
Expertise and track record of the SAP® Consulting organization for delivering success
SAP Trade Promotion Management application, enabling unified planning for total retail salesand replacing four unconnected systems
Implementation in just nine months
Future plans
Realize double-digit growth in retail sales
Continue to maintain top ranking in market share for fresh sausage in the United States, while growing both market share and profitability
Expand reach, while consistently offering high-quality, great-tasting products customers can count on to keep them coming back for more
“The Johnsonville brand mentality is focused on quality, so we rely on
quality technology from SAP. SAP Trade Promotion Management is going
to help us continue to grow while maintaining the high quality and great
taste customers have come to love.”
Lori Plate, Director of Enterprise Applications, Johnsonville Sausage, LLC
PrecisionImproves financial reporting and accuracy
EfficiencyDramatically reduces non-value-added work
ProductivityEnables more salespeople to interact with customers more often
ScalabilityOpens the door for trade promotion optimization, demand signal management, and predictive analytics across the organization
ProfitabilityIncreases ROI and top-line revenue growth
CMPxxxxx (YY/MM) This content is approved by the customer and may not be altered under any circumstances.
© 2012 SAP AG. All rights reserved. 26
Case Studies
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QUICK FACTS
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QUICK FACTS
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Questions?
Questions?