Strawberry Mansion Maximize your Return on … HAPPINESS WITH SAP SAP Trade Promotion Management Process Flow Uplift Sales Volume Forecast Trade Promotion Product 1 …

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1UNWRAP HAPPINESS WITH SAP

Agenda

9:00 – 9:15 am Welcome and Introductions

9:15 – 10:00 am SAP Executive Overview and Boardroom Redefined

10:00 – 10:15 am Break

10:15 – 11:45 am SAP S/4HANA Introduction & Roadmap

11:45 – 12:45 pm Accelerated Implementation

12:45 – 1:45 pm Working Lunch - Accelerated Implementation Continued

1:45 – 3:15 pm Break- out Sessions

Demo Room A Transform your Financial Management

Demo Room B Simplify your Materials Management and Operations

Betsy Ross Discover the New Face of Human Capital Management

Strawberry MansionMaximize your Return on Promotion

InvestmentsWilliam Penn S/4HANA Technical Foundation

3:15 – 3:30 pm Break

3:30 - 4:00 pm Collaborative Next Steps and Closing Remarks

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2UNWRAP HAPPINESS WITH SAP

SAP Trade Promotion

Management -

Overview

Greg McNitt

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Confidential

Aligning Stakeholders to Achieve

Account & Trade Promotion Management

How do I quickly

resolve deductions &

claims, with financial

compliance?

• Days Sales

Outstanding

• Deductions as % of

Sales

• Customer

Profitability

How do I tailor our

capabilities to meet

my customers’ needs?

• Planned v Actual

Spend

• Incr. Revenue &

Volume

• Share of Category

• Account Promotion

Impact

How do I grow sales

with brands to ensure

profitable growth?

• Revenue & Profit

• Customer, Market

& Category Growth

• Competitive share

How do I define the

right programs to drive

incremental sales and

profitability?

• Promotional

Vehicles

• Pricing & Discounts

• Promotion

Guidelines &

Timing

• Profit by promotion

type

How do I assess

promotion results and

profitability to inform

future plans?

• Promotion

Effectiveness

• Revenue, volume &

profit v. plan

• Trend analysis for

volume & revenue

Effective Account & Trade Promotion Management requires alignment

between several stakeholders with differing objectives

Account

Management

Settlements &

Claims

Promotion

Strategy PlanningSales Management

Account ServiceAccount ExecSales OperationsSales Mgmt.

Trade Promotion

Effectiveness

Account Exec

4

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Demand &

Supply

Planning

Demand &

Supply

Planning

Supply

Chain

Trade Budget

Planning &

Allocation

Finance

Pricing &

Promotion

Guidelines

Marketing

Campaign

Planning

Global

Brand PlanMktg.

Claims &

Deduction

Management

Strategic

Objective

Planning

Sales

Measure

Promotion

Vehicles

Evaluate

Trade Funding

Account & Trade Promotion Management is an End-to-end,

Cross-Functional Process

Account

Management

Settlements &

Claims

Promotion

Strategy PlanningSales Management

Account ServiceAccount ExecSales OperationsSales Mgmt.

Trade Promotion

Effectiveness

Account Exec

Account &

Promotion

Planning

Contracts &

Promotion

Templates

Customer

Profitability

Analysis

Assess

Promotion

Impact

Trade Funds

Management

Account

Funds

Management

Promotion

Execution

Account Trade

Budget

Planning



SAP Managing Trade Promotions

ERP

Dispute Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management



• Top Down/Bottom Up/Middle Out Planning

• What-if Versions of Plan

• Consensus Plan

• Budget Creation

• National Events Creation / Deal Creation

(Products, Customers, Timing, Spending Rules)

• Customer Business Planning

• Baseline Volume Management

• Account Planning

• Sales Budgeting, Volume, Revenue,

Profitability, Spending Planning

ERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management

HQ Planning & Budgeting



Funds Management

• Funds Plans, Fund Types, Expense Types

• Fund Creation, Updates, Transfers

• Checkbook

• Budget Check for Planning & Settlements

• Track & Audit All Fund Transactions

• Financial Accrual Management

ERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management



Account Management

Account Planning

• Event/Annual Calendar Planning

• Volume & Spending Forecasts

• Promotion Planning

• Fund Reservation

• Consumer Event Interactions

• Workflow Approvals

Sell-in & Negotiation

• Proposal/Presentation Generation

• Promotion Driven Demand Planning Integrated to

Supply Chain Planning

• Account/Contact Management

• Customer Calendar Alignment

Retail Execution, Validation & Settlement

• Pricing Conditions Connected to Order Entry

Resulting in Accurate Invoicing

• Ability to Capture In-Store Observations for Sales

Rep Execution (In-Store Surveys)

• Proof of Performance

• All Data Sent Up-Stream for Analysis

ERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

ManagementAccount

Management

Claims

Management



Claims Management

• Central Repository of Claims (Invoices,

Deductions, Scheduled Payments)

• Form-Based Claim Validation

• Full Deduction Management Capabilities

(including Chargeback & Write-off Processing)

• Full Integration to ERP Financials & Dispute

Management

• Fund SettlementERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management



Evaluation & Analysis (Knowledge Access)

• KPI Reporting

• Integration from Syndicated Data Providers

• Plan vs. Actual Tracking

• Funds Tracking

• External Analysis

• Exception Planning

ERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management



TPM – Impacting The Bigger Picture

ERP

• Product Master/Customer Master/Pricing Master

• Real Time Update of Pricing for Invoicing

• Order, Invoice, Shipping, Billing Based on Trade

Promotion Pricing – Real Time

Financials

• Financials Updated Based on Promotion Pricing

• Accrual Integration through Financials

• Complete Document Flow for All Accounting

including Deduction Matches

Dispute Management

• Full integration to Dispute Management

• Partial Write-offs for Standard Disputes

• Trade Disputes Settled and Visible

Supply Chain

• Real-Time Bi-Directional Sharing of Forecast

Information― Baseline

― Uplift

ERP

Dispute

Management

Supply Chain

Evaluation &

Analysis

HQ Planning

& Budgeting

Funds

Management

Account

Management

Claims

Management



SAP Sales and Volume Planning

Integrated Business Planning

Corporate

Volume

& Revenue

PlanAllocation

Sales Hierarchy

Division

Region

Territory

Key Account

Product Hierarchy

Category

Brand

Sub-Brand

Item

Bottom-up Planning

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 14Public


Customer Business Planning, a real-time collaborative solution,

empower your Account manager, increase sales profitability

SAP ECC

SAP TPM

SAP DSiM

Optimization

MonitoringInternal &

Retailer Targets

Assortment

Planning

Hierarchy

SAP CBP

Version

Predictive

Analysis

non-promotional

& promotional

P&L



SAP Trade Management: A holistic, integrated solution from HQ

target setting to execution

Detailed Promo

Planning

Post evaluationInsights Actual data

Statistical Forecasting and Optimization

HQ Planning

SAP Trae Promotion Optimization

S&OP, SCM,financial planning

Marketing

Strategy

Customer

Planning

Descriptive Analytics



Let’s Talk about customer-centric business planning

Retailer Targets and Buyers

Define buyers for a category at the

retailer

Maintain targets for each buyer which

will be used for plan monitoring

Price and Volume Planning

Adjust baseline based on account

managers knowledge (e.g. New stores

opening,…)

Simulate price changes and evaluate

overall plan impact

Plan based on trading units and

consumer units

Real time visibility and insight on sales

and promotion performance

Monitor the effectiveness and

profitability of the plan from

manufacturer’s and customer’s

perspective

Planning Hierarchy & Assortment

Define a planning hierarchy to align

with retailer product hierarchy and get

new levels of agility

Assign buyers to planning nodes and

ease the analysis of the plan

List and delist products for simulation

and consideration of new product

introduction



SAP Customer Business Planning

• Based on Internal & Retailer Targets

• Manage non-promotional Volume (Baseline)

• Percentage Baseline Adjustment

• Period Baseline Adjustment

• Monitoring

• Trade Promotions

• Placement Volume Programs

• Create Promotions / Events

• Base Volume

• Plus Promotional Volume vs Target

=

𝑘=0

𝑛𝑛

𝑘𝑥𝑘𝑎𝑛−𝑘

• Adjust Planning Hierarchy

• Assortment

• Plan vs Actuals

Toda

y

Demonstration

Part 1



SAP Sales and Volume Planning

Integrated Business Planning: Funding

Corporate

Volume

& Revenue

Plan • Consumer

• New Products

• Trade

• Media

• Advertising

• Trade



SAP Trade Promotion Management

Process Flow

Trade

Funds

Plan

Trade

Fund 1

Trade

Fund 2 (Base)

Trade

Fund 3

Trade

Fund 4(Discretionary)

Trade

Fund 5

Trade Promotion

Product 1

Product 2

Product 3 Fund Determination

Fund

Usage

Fund

Usage

Fund

Usage

Reserved

Invo

ice -

OI

Settled

Tra

de C

laim

Trade Spend 1

Trade Spend 2

Trade Spend 3



SAP Trade Promotion Management

Process Flow

Uplift

Sales Volume Forecast

Trade Promotion

Product 1

Product 2

Product 3

Trade Spend 1

Trade Spend 2

Trade Spend 3

Demonstration

Part 2


SAP Trade Management: A holistic, integrated solution from HQ

target setting to execution

Detailed Promo

Planning

Post evaluationInsights Actual data

Statistical Forecasting and Optimization

HQ Planning

SAP Trae Promotion Optimization

S&OP, SCM,financial planning

Marketing

Strategy

Customer

Planning

Descriptive Analytics

THANK YOU

Greg McNitt

Solution Engineer

Consumer Products – Trade

Promotion Management

[email protected]

773-255-4560

mailto:[email protected]

Documents

Strawberry Mansion Maximize your Return on … HAPPINESS WITH SAP SAP Trade Promotion Management Process Flow Uplift Sales Volume Forecast Trade Promotion Product 1 …