SAP Trade Promotion Management

What is Trade Promotion Management?

Trade Promotion Management (TPM) is focused on strategizing which promotional events have the greatest customer return on the invested marketing dollars. To determine this, companies must capture the expected promotional events, their costs, and the anticipated uplift.

Manufacturers and retailers require real-time visibility into their trade promotion landscape and adjust supply and demand parameters as business scenarios change. Through trade promotion, companies can expand their market share of specific products, better compete against competitors, and increase their retail partners.

With the use of technology, companies can optimize their trade promotion management by:

Improving sales planning and budgeting
Optimizing customer business planning
Strengthening promotional planning
Supporting execution and settlement

Key Considerations for SAPinsiders

What is Trade Promotion Management?

With the use of technology, companies can optimize their trade promotion management by:

Improving sales planning and budgeting
Optimizing customer business planning
Strengthening promotional planning
Supporting execution and settlement

Key Considerations for SAPinsiders

Improve effectiveness of trade dollars and supply chain by linking products in orders to specific promotions. According to Michael Debevec, President of Debevec Consulting, Inc., companies using TPM assign attributes to promotional spending that help them analyze actual results and compare the actuals to the original plans. “You assign each promotional event an identifier that you link to a new type of condition record, a campaign determination record,” he writes. “During order processing, you use the combination of customer, product, and date to determine if an active promotion is available. If one is available, the system stores the promotion identifier with the sales order line item.” Read the full article to learn more about the SAP TPM landscape and key system components.
Avoid supplier stockouts by integrating trade promotion management with demand management planning. Planning a trade promotion with a retailer means ensuring product is available to meet expected demand. Not doing so leads to customer dissatisfaction and impacts to brand reputation and future sales. Manoj Ambardekar, an SAP subject matter expert with more than 20 years of IT and manufacturing experience, says to avoid stockouts, you need to determine the promotion uplift — the expected increase in demand beyond the baseline forecast. Doing so provides the total demand for a promotion. “TPM helps managers create a trade planning structure and gain visibility into trade promotions. Managers can identify the most profitable customers, fastest-moving product groups, and most effective types of promotions (e.g., end-of-aisle displays or front-page ads),” he writes. Read the full article to learn the configuration steps of a business scenario for a trade promotion.

- SAP Netweaver
SAP BusinessObjects Planning and Consolidation for SAP NetWeaver or Microsoft: How They Differ

Published: 20/June/2011

Reading time: 21 mins

Compare the SAP BusinessObjects Planning and Consolidation, version for Microsoft and the SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver environments, and examine the strategies associated with this technology. Review the concept of the platform as the main issue behind a company’s reason for implementing one of these versions because of data integration issues,...…
Cater to Arm’s Length Standards with Automated Intercompany Transfer Pricing Design

Published: 19/October/2010

Reading time: 18 mins

Understand the pricing technique you can use in your SAP system to cater to IRS and EU arm’s length transfer pricing guidelines. Avoid double taxation on cross-country and jurisdiction transfers in an intercompany value chain. Follow configuration and master data checklists as well as two sample process flows that illustrate the technique. Key Concept Intercompany...…
Efficiently Reconcile MM and FI Inventory Values

Published: 04/November/2009

Reading time: 12 mins

Understand the reasons that cause inventory value discrepancies in materials management (MM) and FI. Learn how to avoid these discrepancies by means of adequate master data and configuration checks. Understand how to identify and resolve MM and FI inventory value discrepancies. Key Concept Material movements originate in materials management (MM) and denote physical movement of...…
Maintain Payment Formats with the Payment Medium Workbench

Published: 15/January/2009

Reading time: 17 mins

Replace your classic RFFO* payment medium programs with the little-known functionalities of the Payment Medium Workbench (PMW) within the SAP Financials module. Understand the relevant configuration, functionality, and different processes of the PMW. Key Concept The Payment Medium Workbench (PMW) and the Data Medium Exchange Engine (DMEE) are software components that allow you to create...…
How to Integrate Solution Manager with Worksoft Certify

Published: 27/November/2012

Reading time: 11 mins

ManagerEnsure your automatic testing is working properly by integrating Solution Manager 7.1 with Worksoft Certify. Key Concept Integrating SAP Solution Manager with Worksoft Certify allows you to create, edit, and execute the Worksoft Certify processes (test scripts) from SAP Solution Manager. SAP Solution Manager contains test assets and links to business processes. If you integrate...…
Improve Your G/L Reporting by Summarizing Your Data

Published: 15/January/2008

Reading time: 15 mins

One of the key challenges for the summarization process is determining which field you need to use for summarization to achieve the best business impact. Understand various summarization levels, as well as process, configuration, and practical examples demonstrating when to use these summarization concepts. Key Concept You can optimize your FI document posting by properly...…
Monitor Your Credit Accounts Effectively with SAP Credit Management

Published: 15/January/2008

Reading time: 14 mins

Become familiar with the concept of credit management hierarchies and how to set them up in SAP Credit Management. Learn how the assignment of credit rules and credit segments works and how these settings affect the credit limit utilization of business partners. Understand some of the key concepts of SAP Credit Management and their differences...…
Streamline Your Parallel Accounting with the New G/L Ledger Solution

Published: 15/April/2006

Reading time: 12 mins

See how to set up parallel accounting with the ledger solution in the new G/L with three procedures: ledger definition, currency valuation, and asset accounting. Key Concept Many international companies are subject to several sets of laws requiring them to issue multiple consolidated financial statements according to various accounting standards. In Europe, all publicly traded...…
Six Keys to Enhancement Package Success

Published: 15/January/2010

Reading time: 10 mins

ManagementEnhancement packages are designed to simplify the process of enhancing your SAP ERP system. However, companies must approach enhancement packages carefully. See how AEI developed its own best practices for preparing and implementing enhancement packages. Tight budgets and greater demands for efficiency means many companies need to do more with less. That reality is no...…
How to Design SAP HR Structures to Work Best for Your Company

Published: 17/February/2010

Reading time: 20 mins

/Project ManagementLearn the key concepts and implementation considerations in building an enterprise and personnel structure for your SAP ERP HCM implementation, upgrade, or global rollout. Use this article as a guide during design workshops to help project teams start in the right direction by learning how HR structures can work for their projects and how...…