Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
www.wipro.com/promax
STAY AHEAD OF THE COMPETITION
IN YOUR MAJOR ACCOUNTS
LAUNCH PROMAX PX FAST START - RAPID IMPLEMENTATION,
PRE-CONFIGURED TRADE PROMOTION MANAGEMENT
www.wipro.com
Table of contents ______________________________________________________________________________
3 ………………….Background
4 ………………….The cost of doing business with the major retailers
4 ………………….The Spreadsheet Challenge
5 ………………….The Opportunity
5 ………………….Getting it right
5 ………………….The Solution
6 ………………….Introducing Promax PX - Fast Start
6 ………………….The Future
6 …………………..Promax PX - Fast Start TPM/TPO Journey
7 …………………..About Wipro Promax Analytics Solutions
Background
______________________________________________________________________________________
As any Trade Marketer or Key Account Manager knows - when the
majority of your business is funnelled through a few major retailers it
can make for a very high pressure environment. The dominance of
these major accounts can often put intense pressure on the supplier
with the constant threat of products (or entire brands) being delisted
if suppliers don’t meet the increasing demands for trade funds. The
result can mean diminishing supplier margins which are unsustainable.
We’re all familiar with Pareto’s 80/20 rule - you know that
broadly 80% of your sales comes from 20% of your client base
and 20% of your product range represents the majority of your
sales. With sometimes as few as just three retailers representing
a significant share of your business, managing this grocery channel
effectively and efficiently is critical.
In modern trade markets, the amount of Trade Funds spent in
major accounts such as Wal-Mart and Kroger (USA), Carrefour
(France), and Woolworths, Coles and Metcash (Australia) often
makes up the lion’s share of your total trade spend budget. In the
more traditional and emerging markets such as Asia and EMEA
where they have a large quantity of “Mom & Pop” stores, the
route to market and fragmented promotion costs through various
wholesalers is the more dominant factor when considering trade
funds. As with any significant investment, you want to make sure
that you are spending this money wisely to maximise ROI and to
protect and grow the relationship with these highly influential and
valuable customers. Given the nature and complexities in the
global retail market place its imperative that the supplier has the
ability to track, predict and control their trade spend.
With so much money at stake and the potential risk to revenue,
fair trading regulations in relation to dealings between supplier
and retailer are under heavy scrutiny. Competition regulators
around the world such as the ECA (European Competition
Authorities), ICN (International Competition Network), the
United States Robinson-Patman Act and the ACCC (Australian
Competition and Consumer Commission) are paying close
attention to this area.
03
A new research report commissioned by KPMG and the
Australian Food & Grocery Council revealed that the
food and grocery sector had been hit with steep
increases by the number of discounts and rebates
demanded by retailers. It found that supplier costs in
rebates, discounts, promotions and shelf fees increased
by 20.4% over the last three years, this having a bigger
impact on suppliers than the costs of goods and labour.
The cost of doing business
with the major retailers ________________________________________________________________________________________________
In such a competitive and major retailer saturated environment,
recent trends have shown that European Union, United States,
Latin American, EEMEA and Australian retailers have sought to
expand their retail offer into areas such as liquor, fuel,
newsagency, pharmacy and other segments previously the domain
of speciality businesses. This has altered the effective wholesale
market shares in the grocery food market in certain areas and
changed the dynamics for suppliers to certain product sectors,
ultimately empowering retailers with even greater buying powers
to negotiate high margins and demand more trade funds.
Figure 1 below provides a comparison of the costs of doing
business and gross profits over a three year period as a
percentage of sales for a variety of international retailers.
While the grocery channel can at times place pressures on the
supplier, it does represent a significant opportunity if you are
armed with both retailer and supplier key metrics in order to put
forward compelling deals.
Typically the retailer will firstly evaluate the increased margin and/
or the sales volume a promotion will deliver. They may also
consider whether the proposed promotion will draw new
shoppers into their store and therefore potentially spend more
money buying multiple items. They may ask:
• Is the price discount attractive enough to steal market
share?
• Are there complimentary products that will also see a
surge in sales as a result of the promotion?
• What is the forecasted ROI?
If the Key Account Manager has all this information captured in
one tool as well as providing them their own key metrics, he/she
can put forward a very convincing proposal that also positions the
supplier as a preferred and trusted advisor.
04
Key:
• WW Woolworths Australia
• Wmart Wal-Mart USA
• Wmart Int Wal-Mart outside of USA
• Kr Kroger USA
• Alb Albertsons USA
• Car Carrefour France
Figure 1
Multiple studies have been conducted over the years on the world’s
best selling spreadsheet software and the results show that almost
90% of spreadsheets contain errors! A professor of IT Management at
the University of Hawaii found that “in large spreadsheets with thousands of formulas, there will be dozens of undetected errors”.
Whilst we all agree that spreadsheets are a powerful tool and reasonably robust, the real challenge is that anyone can create a
spreadsheet and therefore it is prone to a multitude of sins. Firstly there is no audit trail in what numbers or formulas have been changed,
when they were changed and by whom. There is also no easy way to test that the spreadsheet is working accurately. In a nutshell,
spreadsheets are not always created by people who understand programming well and often there are multiple contributors to the
development of a spreadsheet so not everyone follows the same methodology and the design and flow of the spreadsheet can become
fragmented.
The Spreadsheet Challenge _________________________________________________________________________________________________
Embracing new technology can sometimes be a daunting process with Senior Management demanding a low cost, rapid implementation that
results in little disruption to the business and an immediate return on investment.
At Wipro Promax Analytics Solutions (WPAS), we understand the key
drivers as we have been specialising in Trade Promotions Management
(TPM) and Trade Promotion Optimization (TPO) solutions and
implementations for over 24 years. With more than 60 instances of the
solution successfully implemented around the world, our team of TPM/
TPO experts know exactly what’s required to get the job done.
WPAS have a variety of customers in different industry verticals (including
Consumer Goods products such as Food & Beverage, Household Goods
& Hardware, Healthcare & Life Sciences and High-Tech Manufacturing).
Promax PX is also scalable to suit different company sizes and structures,
so we appreciate that everyone’s needs are different.
The Solution ________________________________________________________________________________________________________________________________
The Opportunity ____________________________________________________________
Knowledge is power, so the ability to capture all the data in one
repository that has the ability to interface with your ERP system
is crucial.
Whilst an in-house spreadsheet approach that attempts to
capture data from ERP application data dumps have some
benefits, they are not designed to manage the complexities and
nuances associated with managing promotional plans for complex
product ranges and account hierarchies. With companies
spending upwards of 25% of the Gross Sales Value (GSV) on
Trade Spend, it’s important that you have the right tools and
processes in place.
When it comes to spending millions of dollars on Trade
Promotions, the last thing you want is inaccurate data. It is
imperative that the numbers are right and that there is visibility to
all stakeholders in the business of the effectiveness and efficiency
of your trade promotions.
A seamless, integrated approach to promotion planning eliminates
costly compromises & helps Consumer Goods (CG) companies
take advantage of data to greatly enhance the productivity of their
trade promotion dollars. A unified trade promotion planning
business process is anchored in an integrated technology
platform. Solutions such as Promax PX are closed loop solutions
that enable meaningful interaction among all the different business
functions that are affected by trade promotions planning and
execution processes.
Getting it Right
With a closed loop Trade Promo�ons Management solu�on you
will ensure:
• You have an efficient process with good visibility and
control of your promo�onal plans and trade spend.
• The key stakeholders have a be!er understanding of
promo�on dynamics enabling them to mastermind
promo�onal plans with greater insight.
• The organiza�on achieves a be!er u�liza�on of trade
spend - delivering be!er financial outcomes.
• A be!er understanding of the retailer performance and
the ability to deliver promo�ons that are beneficial to
your valued customer, escala�ng you to become a trusted
advisor rather than just another supplier.
• The ability to leverage the key data such as Point of Sale
(POS) of Syndicated Data to create meaningful insight to
drive be!er ROI from your trade spend.
05
Introducing Promax PX -
Fast Start ____________________________________________________________________________________________________
Fast Start represents a low cost, swift way of implementing a
functionally rich Trade Promotions Management solution such as
Promax PX. Where many implementations can often stall is that
the company is trying to build an application from the ground up
and tailor it to every unique process in the business. With Fast
Start you can empower your team to stay focused on securing
the deals and leave TPM to the expertise of Promax.
As the Promax PX application has been built to meet the needs of
a broad cross-section of company structures, sizes and industries,
we can offer a pre-configured template approach.
The key benefits of a template approach are:
• It can be a catalyst for embracing proven and commonly used
best practice business processes within the Trade Promotions
space.
• It gives you access to a proven functionally rich and advanced
TPM solution.
• It streamlines the implementation approach - ensuring that
the business doesn’t get distracted by extended
implementation teams and detailed implementation processes.
The Promax PX - Fast Start approach combined with the Wipro
SAAS offering means that you will be able to:
• Reduce the load and demands placed on your internal
resources and IT teams.
• Minimize the upfront and overall project costs.
The Future
Adopting Promax PX - Fast Start doesn’t only mean that you can
get access to Promax PX quickly - it also opens up an array of
services and products:
• Additional functionality such as Strategic Planning and
Budgeting can be activated when the business is ready.
• Advanced modelling & forecasting services can be provided -
this allows sophisticated statistical models to be incorporated
and used when planning promotions utilising Promax PX
advanced predictive capabilities and Wipro’s Advanced
Statistical Modelling Services.
• Advanced Reporting and Analytics can be established -
allowing flexible user reports and analysis. Having all the
information centralized means that the business can enable
intelligent data analysis.
• Extended use of Promax PX to other Account Hierarchies.
06
Promax PX - Fast Start TPM/TPO Journey ____________________________________________________________________________________________________________________________________________________________________________________________________________
The inevitable questions?
• How long will a TPM project implementation take?
• What resources do I need?
• How much will it cost?
• How do I present the business case?
About Wipro Promax Analytics Solutions
______________________________________________________________________________________
Wipro Promax Analytics Solutions (WPAS), a Wipro Group Company, is a world-leading specialist in Trade Promotion Management,
Forecasting & Volume Planning, Customer Account Planning & Budgeting and Modelling & Trade Promotion Optimization. With headquarter
operations based in Australia and offices in North America, United Kingdom, Central Europe, India and New Zealand, WPAS boasts an
impressive stable of global consumer goods companies. Promax solutions are the result of more than twenty-four year’s experience working
in close collaboration with leading consumer goods manufacturers, retailers and distributors.
The Promax PX solution has been designed to allow a seamless, automated process to Track, Predict and Optimize promotions and trade
spend. It incorporates the most sophisticated tools to maximize a client’s return on trade spend investment, and deliver optimal outcomes
for retail partners.
WIPRO LTD., DODDAKANNELLI, SARJAPUR ROAD, BANGALORE - 560 035, INDIA.
TEL: +91 (80) 2844 0011, FAX: +91 (80) 2844 0256.
WIPRO PROMAX ANALYTICS SOLUTIONS, 1/7 SKY CLOSE, SHEARWATER BUSINESS PARK, TAYLORS BEACH NSW 2316, AUSTRALIA.
TEL: +61 (2) 4982 2262, FAX: +61 (2) 4982 2286.
WIPRO PROMAX ANALYTICS SOLUTIONS, 3575 PIEDMONT ROAD NE, BLDG 15 SUITE 600, ATLANTA GA 30305, USA.
TEL: +1 (404) 495 3215, FAX: +1 (404) 949 0869.
WIPRO PROMAX ANALYTICS SOLUTIONS, WEST WING, LEVEL 2, 3 SHELDON SQUARE, LONDON W2 6PS, UK.
Tel: +44 (207) 432 8500, FAX: +44 (207) 286 5703