2. Foodservice Trade Promotion Management (TPM) is a very
complex aspect of doing business with trading partners. If
foodservice companies do not have an effective trade promotion
management process in place, then theres a good chance theyre at
risk of losing money.
3. Tips to Improve Your TPM Process
4. Invest In A Trade Promotion Management Contract Management
Tool Investment in a contract management tool is essential to
ensuring contracts are set up correctly and that contracts are
managed properly. A contract management system provides the ability
to easily gain insight into contracts and make sure theyre where
they need to be in the overall process.
5. Validate Claims Against Contracts Validate Claims Against
Contracts Dont just pay out on invoices received! Its important to
validate that what a distributor or operator is invoicing for is
based on the agreed upon contract. Often times the distributor or
operator does not have the current contract updated in their
system; therefore, its important to bump claims up against the
contracts to ensure youre not overpaying and to ensure all parties
involved have the most up-to-date information. It also allows your
sales team to identify if there are discrepancies on contracts so
that they can address them appropriately and in a timely
manner.
6. Know Distributor Deduct Policy Timeframes If you have
distributors billing back that also have deduct timeframe policies,
then its extremely important to ensure claims are paid within their
deduction timeframe. Otherwise, you will run the possibility of
issuing a check at the same time they deduct, which will result in
double dipping and a loss on your end. Maintaining a low deduction
balance is important to your business so make sure youre only
allowing deductions where appropriate.
7. Match Deductions to Claims If your organization strives to
maintain a low deduction balance, then its important for you to
verify if a deduction has been taken prior to paying out on an
invoice. Match your deductions against your invoices to prevent
double payments and keep a low deduction balance.
8. Rebill For Invalid Deductions If you find that a distributor
has deducted but that they deducted for items that were not valid
against the contract, then its important to rebill them for those
items. A few dollars here and there may not seem like a big deal;
however, those few dollars add up over time.
9. Do You Have the Right TPM System? Ensuring you have the
right foodservice trade promotion management system, such as
GoSimple, will help you implement the previously mentioned tips.
Contract management and claim settlement is a huge part of your
business and requires certain steps to be taken in order to keep
things within your business in line.
10. Contact GoSimple Today! Request a Demo:
http://gosimple.me/request-gosimple-demo-manufacturer Dont forget
to check out our e-Book Critical Steps to Foodservice TPM Success
http://gosimple.me/tpm-e-book/