Custom Analytics TPM Process & System

Speaker: Jon Vasatka Director of Sales Operations

Continental Mills

Custom Analytics and your TPM Process & System

In 2006, Managed Trade with Excel spreadsheets and Gelco.

In 2007, Automated our Trade Planning with Synectics Account Review. The new Trade Planning system was just the beginning of a major transformation for the Continental Mills Retail Division.

TPM Process & System Assessment

Year 1: Assess Tools, Processes and Capabilities

!  Field Sales Tools and Information to develop Promotions !  Forecasting Process !  Order-To-Cash Process !  Deduction Management Process !  Annual Customer Planning Process !  Sales Team and Support Staff Capabilities & Gaps

TPM Process & System Long-Term Vision

Long-Term Vision ! Accrual Based Collaborative Planning with the Customer ! Customer and Product Profitability ! Closed Loop Trade Promotion System to manage our Trade Investments ! Information System/Tools to Improve Business Decisions ! Improve our Promotion Effectiveness & Efficiencies ! Order-To-Cash – The Perfect Order ! Flexible, Trained Sales Team – Decisions in the Field

TPM Process & System Priorities & Collaboration

Short-Term Priorities !  Created Information Scorecards for each Region Mgr. !  Integrated our ERP system to develop a Closed Loop Trade

Management System. !  Collaborated with our Broker, Marketing, IT, Accounting, A/

R, Finance and Customer Service to formalize our internal and external processes.

!  Re-designed our Annual Customer Planning Process. !  Collaborated with Marketing to develop MAPS by Brand !  Developed a formal Post-Promotional Process.

"  FY ’07 - ’08 –  Implemented Account Review Planning System in 2007 –  Develop a new Category Management Tool using Nielsen –  Implemented Account Review Deduction System in 2008 - “Closed the Loop”

"  FY ’09 –  Post-Promotional Analysis:

Customer spend rate by Product Group. –  Incremental Opportunity Analysis:

Promotions Impact to Variable CBA

"  FY ’09 - FY ’12 –  Strategic Customer Initiative by

Product Group –  Customer Profitability –  2011/12 – Promotion Optimization

National Trade Plan

Regional Trade Plan

Customer Strategic

Trade Plan

TPM Vision & Goals

TPM System - Account Review “Closing the Loop”

Strong Support from your Trade System Provider ! ERP system must be integrated to clear deductions. We could not effectively manage Trade until this happened! ! Sales Team and Support Team must be Trained. ! Synectics listened to our needs and upgraded system.

1.  Planning System to easily conduct “What If” Scenario’s and the impact to Spending, Sales and Profit for Customer and CM.

2.  Roll-up Indirect Planned Spending & Results 3.  Monthly flow of Turn and Promotional Plans for Forecasting.

! Improve your Spending & Accrual Accuracy ! Significant reduction in hours to manage Trade Investments

Primary Information Tool For our Sales Organization

!  Develop Annual Promotion and Turn Plans !  Forecasting !  Customer’s Optimal Sales & Profit with Everyday Price

changes. !  Customer’s Optimal Sales & Profit at different Promoted

Price Points and Merchandising Support. !  Project Customer’s Accrual funds !  Post-Promotion Analysis – Validate Execution of Plans,

Performance and Merchandising Support. !  Use to Evaluate our Key Competitors Activity !  Track our Weekly/Monthly Distribution and Trend changes

CM Sales Information Tool “Bump Charts”

Weekly Trends

Monthly Trends

Managing your Trade Investment “Measuring Promotional Effectiveness”

40.00%

45.00%

50.00%

55.00%

60.00%

65.00%

70.00%

2006 2007 2008 2009 2010 2011

CM  Brand  Promotional  Effectiveness  Versus  Competition

CM  Brand Competitive  Brand

TPM System & Processes Key’s to Success

!  Develop a Vision and your end Goals. !  Senior Management support for change. !  Sales Organization that is open to change – Sell Them! !  Strong Support and Collaboration from IT, Finance,

Accounting, A/R, Customer Service, and Marketing !  Training and staffing with the right Skill Set. !  Document your Processes and following them. !  Expect change and Never be Satisfied. At CM, we are

always looking for ways to Improve whether it’s affordable technology, tools, training or revising processes.

Questions???