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.
1177 results
-
Distribute Critical Data Among Multiple SAP Systems by Using Change Pointers
Using change pointers allows you to select exactly what data you want integrated systems to communicate to each other. See an example of the functionality with SAP ERP Central Component and SAP BusinessObjects Global Trade Services. Key Concept Application Linking and Enabling (ALE) enables communication between SAP applications. It allows you to define the master...…
-
Use Predictive Analysis to Gauge the Effect of a Price Change or a Promotion on Sales
Predict the outcome of a promotional program or price change on sales figures using predictive analysis. Sunil Mehta and Biswajit Biswas provide step-by-step instructions that focus on the food and beverage industry. Key Concept Exponential smoothing is used to revisit, review, and revise forecast values based on comparison of historical data. This smoothing follows the...…
-
SAP S/4HANA Modules: A Practical Breakdown for Enterprise Decision-Makers
Businesses nowadays are always looking for ways to improve their processes and continue to be successful in the dynamic solution market. One very important tool that has truly altered the way business processes are carried out is SAP S/4HANA modules. Several features in this intelligent and extensive ERP collection are intended to enhance business operations…
-
Create Unparalleled Analytical Applications with SAP NetWeaver BI, Visual Composer, and Macromedia Flex
Discover how Visual Composer allows you to create analytical applications without programming knowledge. Key Concept Also known as actionable dashboards and often confused with scorecards, floorplans, or cockpits, analytical applications allow business users to perform strategic, business-related functions. Key features of this type of program include easy navigation, graphical displays, drill-down menus, targeted content and...…
-
New SAP BusinessObjects Functionality Streamlines Data Migration
Follow this consolidated procedure to migrate SAP BusinessObjects from its source data center to a target data center environment. Easily understand what’s required for an SAP BusinessObjects migration. Key Concept SAP BusinessObjects BI (also known as BO or BOBJ) is a suite of front-end applications that allows business users to view, sort, and analyze business...…
-
cbs Positions SAP GTS as the Strategic Backbone for APAC Trade Compliance
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.
-
Build an Effective Interface for Your Employee Screening
See a two-phased process to build an interface between your SAP ERP HCM and SAP GRC Global Trade Services systems. By setting up communication between the two systems and using Application Link Enabling to transfer the data, you can improve your employee screening in SAP ERP HCM. Key Concept Application Link Enabling (ALE) is a...…
-
2025 Retail Technology Trends & Challenges
A survey conducted by Rizing revealed that top retail executives in North America face challenges such as supply chain disruptions, economic uncertainty, and insufficient ERP integration, while also recognizing the need for investments in technology, particularly in inventory management, AI adoption, and unified commerce strategies to enhance operational resilience by 2025.
-
Uncover New Insight into Your Customers with mySAP CRM Analytics
Find out how mySAP CRM Analytics, a group of tools offered with mySAP CRM 2005 and SAP NetWeaver Business Intelligence to help you optimize your customer data. Learn about the mySAP CRM extraction mechanism and cross-application analysis tools you can use with your data. Then, explore the standard tool sets available, including customer analytics, product...…
-
Work Management Data: The Pulse of Everyday Operations
Work management data powers daily operations. This thought leadership piece explores how transactional data—work orders, labour logs, material usage—drives performance across EAM and SCM. Learn how disciplined processes and governance can turn this data into a strategic asset.
Your request has been successfully sent