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?

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

  • 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.

1146 results

  1. Understand the Archiving Capabilities and the Standard Archival Objects of SAP Global Trade Services

    Published: 05/June/2013

    Reading time: 14 mins

    /GRCLearn how to archive data from the SAP Global Trade Services system, which contains all the trade-relevant compliance and customs data, without affecting any feeder systems (SAP or non-SAP) that are connected to it. See how archiving that data enhances system efficiency and boosts performance, resulting in lower operational costs. Key Concept Transaction SARA, also...…

  2. Make the SAP BusinessObjects Global Trade Services 10.0 UI Easy to Use with New Visualization Features

    Published: 21/June/2011

    Reading time: 11 mins

    Learn the visualization aspect of version 10.0 of SAP BusinessObjects GRC solutions with specific examples of version 10.0 of SAP BusinessObjects Global Trade Services. Discover some of the key differences in the user interface between versions 10.0 of SAP BusinessObjects Global Trade Services and SAP BusinessObjects GRC solutions, including visualization. Key Concept Visualization is one...…

  3. SAP BusinessObjects Global Trade Services Handles Complex Compliance Checks

    Published: 19/May/2009

    Reading time: 10 mins

    Discover how to perform an import and export check using SAP BusinessObjects Global Trade Services. Key Concept Export and import compliance checks involve performing trade compliance checks against outbound and inbound transactions (such as sales orders, delivery notes, stock transport orders, vendor purchase orders, or inbound deliveries). Both export and import checks entail performing three...…

  4. Change Data Basis Functionality Simplifies Product Classification in SAP Global Trade Services 10.1

    Published: 18/June/2014

    Reading time: 18 mins

    Learn how to set up a numbering scheme in SAP Global Trade Services 10.1 to facilitate the assignment of tariff and commodity codes for products sold by your organization. See how completing this process in version 10.1 is different from older versions of SAP Global Trade Services. Key Concept Product classification is the process of...…

  5. Improve Operational Effectiveness by Properly Loading and Monitoring SPL Data

    Published: 09/September/2009

    Reading time: 24 mins

    Review the operational considerations and the effective use of sanctioned party list functionality in SAP BusinessObjects Global Trade Services. See how to index business partner records effectively and manage your content and operational activities. Key Concept Screening business partners is controlled by three factors: record changes in the source system, content updates, and time. Record...…

  6. cbs Positions SAP GTS as the Strategic Backbone for APAC Trade Compliance

    Reading time: 3 mins

    APAC businesses are facing increasing regulatory pressures and functional gaps in SAP S/4HANA’s foreign trade capabilities, prompting cbs Corporate Business Solutions to position SAP Global Trade Services as the essential solution for comprehensive compliance and customs management amid evolving trade environments.

  7. SAP BusinessObjects Planning and Consolidation: Read Dimension Members and Their Properties from an AppSet Using a BAdI

    Published: 13/September/2010

    Reading time: 9 mins

    Find out how to use a Business Add-In in SAP BusinessObjects Planning and Consolidation to read the dimension members and their properties within the same AppSet or any other AppSet. This enables you to create reports from data that you access in two different applications. Key Concept Business Add-Ins (BAdIs) furnish developers with the ability...…

  8. Promotion Planning SAP IBP

    Promotion Planning and Management with SAP IBP

    Published: 18/August/2022

    Reading time: 2 mins

    Demand forecasting was highlighted as a key challenge in SAPinsider's recent research Supply Chain Planning in The Cloud. The quality of forecasts also plays a key role in inventory management, which has emerged as another key focus area for SAPinsiders. We will also publish a research report focused on this specific topic of inventory management…

  9. Mitigate Foreign Trade Payment Compliance Risk Using the Cockpit for Documentary Payments

    Published: 31/March/2017

    Reading time: 33 mins

    Learn how the Cockpit for Documentary Payments can be used to facilitate international customers’ payment compliance, thereby reducing the risk of doing foreign trade. Follow steps to implement the Documentary Payments component in SAP sales and distribution (SD). Key Concept The Cockpit for Documentary Payments provides automated financial documents to facilitate payment guarantee procedures required...…

  10. Set Up Preference Processing in SAP ECC and SAP Global Trade Services

    Published: 15/December/2009

    Reading time: 14 mins

    See how to set up and perform preference processing within your global customs practices through your supply chain in both SAP ERP Central Component and SAP GRC Global Trade Services. Preference processing allows you to capture and determine the duty preference, drawback, and allowance based on the country of origin and tariff for the product....…