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1)Trade promotions are incentives paid by (consumer packaged products) manufactu rers to retailers for merchandising support.

They are used as a method to increase revenue. That means Trade Promotion Management deals with offering special dea ls to customers (retailers) for specific products for a specific timeframe to ach ieve incremental volume. a)The manufacturers offer various forms of value d actions in hopes of generating incremental volume and profit. in return for retailer promises an

b)It is importantto distinguish that these investments occur at two levels withi n a retail organization as shown in the middle column: at corporate level where the retailers commit themselves to the promotions and at outlet level where the promotions are executed and available to the consumers. c)cannibalization and pantry loading reduce the effectiveness of the money invested. The term cannibalization refers to the fact that sometimes when a product is promoted, it decreases another products sales; this could be a compet itor product but in some cases also an own product The term pantry loading refers to theretailers practice to overstock their inven tory to take full advantage of the promotional discount. TPM Key Trends and Challenges First, retailers themselves are becoming increasingly demanding, fully expecting that consumer goods manufacturers present promotion programs that are tightly integrated with consumer marketing campaigns and tailored specifically to the retailers individual needs and to the needs of their shoppers. Promotion activity, the traditional focus of the sales organization, has also become increasingly complex. In order to be effective, salespeople need to demonstrate that sales promotions drive both top-line and bottom-line growth for the products they sell and the categories they serve, and all at acceptable cost s.

And finally, sales people are increasingly called upon to move beyond simply relationship managers and become general managers, bringing to bear the full capabilities and resources of their organization to serve the needs of their ret ail customers. Example Biggest Business problem Related to Tpm

promotion planning. Trade Claims Management (TCM) starts off during the Field Account Planning and Sell-in and Negotiation processes. Trade Claims Management Features and Integration ============================================= All trade payments and reimbursements are processed through TCM. =)About half of the respondents feel that they need to improve their sales forec asting. valiadate retailactual performance to ensure the agreement is beging properly up help. as well as accurate accounting of all expenses to the corr ect funds.validation. Automate the year-end redate and chargeback processing. =) 18% feel that reconciling deductions is not handled well in their company. ======================= Efficiently manage disputes according to agreed well as accurate accounting of all expenses.claim analysts or key account managers need to validate the claim and al locate the cost to the promotional activity.Key Capabilities --------------------------------------Integrated trade claims management capabilities provide complete claims and deduction validation. =)one third feels that they need to make better use of their demand data. Trade Claims Management . =)41% want better visibility into their spends and deductions. =)Reducing spending is rated a big problem by also one third of all respondents. =)Not being able to accurately predict the effects of their promotions is a prob lem that also 41% of the companies surveyed mentioned.=)80%of companies surveyed rated Improving promotion effectiveness as one of their top three business problems related to the trade promotion process. Acces fund.and clamin all at one place. Key Definitions and Key Capabilities ---------------------------------== Trade Claims Management allows organizations to allocate. track and validate trade promotion spending Track and validate trade promotion spending. There are several SAP CRM objecst available to support this process like Deduction and Inv oice . Trade Claims Management ===================== Example After the promotion has been executed payment of the promotional spends needs to be managed. integrated trade claims capabilities provide complete claims and deduction vali dation.

Financial Supply Chain Management) Claim Types Overview-419 ================ deduction -Deduction Claims allow customers to claim the amount spent implementi ng a trade promotion from the manufacturer. Once a claim iscreated and reaches a specific status in processing. The main benefit of TCM is its tight integration with other SAP modules along wi th SAP ERP. the configuration is very complex. The customer does so by not paying the whole amount of a manufacturers invoice. Prepayments and Corrections. Steps 2 and 3 ========== describe the necessary settings for the approval and validation of the claim doc uments. step 1 ========== customizing of the different transaction types which are required for the trade claims management process are explained. The Availability Control mechanism . Chargeback. Trade Funds Management Trade Promotion Management SAP CRM Settlements and SAP ERP Financials FSCM-Dispute Management (FSCM . Trade Claims Management also serves as a central repository and is integrated wi th SAP SEM (Strategic Enterprise Management) to support form based claim validation . Write-Off. direct payment-is a onetime configuration ====================== Trade Claims Management is a highly integrative process. invoice -is an invoice request from customer to receive reimbursement for the p lanned or excuted trade performance. One of the major complexities are the interfaces to other SAP syst ems like SAP ERP and SAP BW. the funds de termination finds and assigns the relevant fund for the created claim.Claim.

Assign Business Transaction Category A transaction type can be assigned to one or more business transaction categories.e. A transaction type controls how a specific business transaction is processed and can be used. customizing settings f or the header level of the transaction have to be done. and number range assignment 2. Examples for transaction types are: Invoice Claim Deduction Claim Claim Submission Fund Funds Plan A transaction type is assigned to one or more business transaction categories. e. 3. step1 *********************** Define Transaction Types ======================= 1. Only certain combinations of business transaction categories are allowed. Steps 4 ========== explains the relevant settings for the funds determination and the AVC check. text determination procedure. approval procedure etc. . Define Transaction Types one specifies the description of the transaction type as well as important control attributes suchleading business transaction category. service.g. claim submission integration. prepayment integration. organizational data profile.checks if enough budget is available within the Fund to process the claim. Various settings can be made here. sales. Customizing at Header Level For each of the business transaction categories assigned. status profile. validation sheet integration. depending on the business transaction category. activity). Steps 5 ============== settings for the integration to dispute management are described. g. partner determination procedure.

Approval (Step 2) ************************* Define Approver Groups and Thresholds Customer Relationship Management ? Claims Management ? Approvals ? Define Approver Groups and Thresholds The system checks if the user has sufficient rights to approve a budget posting. Multi-Stage Approval for transaction types that have been assigned to the transaction category Budget Posting. deduction claim or an invoice claim. . This is known as the threshold check. prepayment or claim.000. a deduction claim or an invoice claim can be approved automatically. Prerequisite to activate this function is that the following indicators within t he transaction type customizing have been set in the step above: Approval Procedure for transaction types that have been assigned to the claims transaction category Claim. The Clerk can approve claims up to $1. prepayment.00.000. This check is performed when the user saves a docume nt with status To Be Approved at header or item level. As part of the threshold check. depending o n the user's approval rights. This check is performed when the user tries to set the status Approved at header or item level in the budget posting. prep ayment.000.00 but only Supervisors can approve claims above that up to the amount of $100. the system also checks if a budget posting.