Trade promotion management from IBM and SAP

Executive summary

The goal - Plan. Target. Integrate.
Your challenge is to drive revenue growth in the competitive consumer products environment, while making trade funds spending more effective and efficient—without alienating retailers. You can drive profitable programs. Reduce out-of-stocks. And pass savings down to consumers. How? By gaining visibility across accounts and departments. Planning at the store level. Targeting specific shopper segments. Integrating demand planning. And reducing cycle times.

The advantage - Identifying opportunities for tangible results
The IBM and SAP approach to trade funds management integrates strategy, process, application, organization and infrastructure. We can assess your current and desired capabilities. Develop a roadmap, prioritizing processes and functionalities that help deliver the most immediate ROI first. Create a prototype and set up a pilot with real customer data. We provide a business evaluation, pinpointing opportunity areas for actionable, tangible impact. We bring a fresh perspective to the table, enabling you to quickly implement incremental process improvements for maximum business value.

Our methodology closes the loop on the process by integrating planning across headquarters, sales associates in the field, and global retail partners. It promotes collaboration by extending planning processes to brokers, wholesalers, bottlers or other partners. With better coordination on promotion timing, scheduling and inventory you can drive revenue and margin growth. And create marketable differentiation for competitive advantage.

The benefits - Strategies for measurable success
We tightly couple business objectives with promotion strategies and application enablement to provide measures of success that match the promotional strategy, helping you:

Business view

The goal - Drive effective trade fund promotions
Do you plan trade funds as effectively as you would like? Are promotions communicated and executed accurately? Do you measure results across your plan to drive the next promotions cycle? IBM and SAP can help you do just that. Collaborate with retailers and capture real-time data on promotion performance. Our solution can help you reduce your sales force’s time in administering trade funds. Decrease fund overspend. Monitor retailer compliance. And analyze performance.

The advantage - Focused and dedicated to bringing you success
As SAP’s first alliance partner in the 1970’s and a global alliance partner since 1989, IBM’s focused investment in SAP has resulted in the world’s largest and most experienced SAP practice. The strength of the SAP application portfolio coupled with the broad range of services from IBM, including implementation, hosting and outsourcing allows us to offer you an unprecedented range of options for your SAP investment. We offer:
The benefits - Close the loop on planning, execution and analysis
Manage and analyze trade funds and promotions efficiently. Determine how your funds are applied, where they are spent, how they are accounted for and if they are successfully promoting products and sales. IBM and SAP together offer manufacturers a new approach to trade promotion management. Our closed loop solution enables you to conduct promotion analysis, develop standardized plans, and evaluate budgets in relation to planned and actual spending.

The approach - Rich functionality for promotion planning
The trade funds management solution from IBM and SAP can transform your business by delivering:

The financial advantage - Trade promotion solution payback forecasts
Our forecasts determine a typical payback period for a closed loop trade funds management solution to take 12 to 18 months when processes, policies and tools are in place for account plans, volume forecasts, funds budgeted tracked and closed, and consumer payments. For example, we have seen:

Technical details

The issues - Seamless, timely deployment
IBM and SAP can help you speed up the decision process for implementation of a trade funds management solution by providing a robust proof of concept. We offer a pilot system with real customer data and demonstrate the new capabilities that can be gained. Our system minimizes risk by providing a true cost evaluation, taking your current capabilities into consideration. And with our pre-configured templates, you can gain a shorter implementation period.

The benchmark - Offering joint experience and expertise
IBM and SAP combine IBM's consumer product industry expertise, skills and methodologies with SAP's Trade Promotions Management applications. We offer:

The components - Integrate across your organization
The trade funds management solution from IBM and SAP is composed of SAP applications including components of SAP CRM, SAP BW and SAP SCM. It is, of course, integrated seamlessly with SAP ERP transactional systems and the SAP NetWeaver® open integration and application platform.

The solution is optimized on an IBM technology environment and can include:

We can help you integrate your enterprise resource planning (ERP), legacy and back-office applications and:
The implementation - Client experience
A leading Consumer Products company faced critical technical issues that led to ineffective trade promotions management.
The cost of ownership - Rapid implementation for faster results
IBM and SAP, due to our experience working together, compatible technologies and best business practices, can provide you with a rapid implementation driving a faster return on your investment. And we can help you:

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