Driving Outperformance – Hershey, SAP, and PwC Managed Services Collaboration for a Data-Driven TPM System

⇨ To improve accuracy and efficiency in these areas, Hershey decided to transition from an outdated TPM system to a modern, cloud-based solution which aimed to enhance data reliability, pricing, and promotional strategies, and to better position Hershey in a competitive retail market.

⇨ Hershey chose PwC for its extensive experience in both TPM and SAP implementations, ensuring a smooth and effective upgrade process.

⇨ PwC, Hershey, and SAP collaborated to develop a Trade Promotion Management (TPM) system that efficiently manages large volumes of data and maintains high user adoption rates.

Hershey, a major consumer packaged goods (CPG) company, relies heavily on Trade Promotion Management (TPM) to manage its retail marketing activities such as special pricing and in-store displays. TPM is crucial for various aspects of Hershey’s operations, including product pricing, volume forecasting, supply chain planning, resolving disputes, and processing payments, all of which influence the company’s financial statements. To improve accuracy and efficiency in these areas, Hershey decided to transition from an outdated TPM system to a modern, cloud-based solution. This upgrade aimed to enhance data reliability, pricing, and promotional strategies, and to better position Hershey in a competitive retail market. To keep evolving and adapt flexibly to the upcoming SAP S/4HANA ERP platform, Hershey chose to transition from a TPM system dependent on outdated processes to a more streamlined, cloud-based solution.

Recognizing the complexity of TPM, which involves significant data exchanges between account managers and retailers, Hershey sought an experienced advisor to manage this transition. Hershey chose PwC for its extensive experience in both TPM and SAP implementations, ensuring a smooth and effective upgrade process. This partnership highlights the importance of accurate data management in maintaining operational efficiency and making informed business decisions.

Achieving success with SAP S/4HANA and PwC Managed Services

PwC, Hershey, and SAP collaborated to develop a Trade Promotion Management (TPM) system that efficiently manages large volumes of data and maintains high user adoption rates. Key to avoiding the “adoption spiral of death,” where users revert to manual processes due to slow technology, the team implemented the latest SAP trade management technology. This system uses in-memory databases for fast data processing and can scale as data complexity grows. Throughout the project, the collaboration helped tailor SAP’s TPM solutions to better fit Hershey’s specific needs.

Post-implementation, Hershey integrated TPM platform maintenance into a broader enterprise contract with its existing services provider. To manage the platform’s complexity and maximize its performance, Hershey required a specialized team. The complexity of managing the TPM platform required specialized SAP TPM professionals, and PwC’s Managed Services team, having already assisted with the technology’s implementation and upgrade, took over the day-to-day management of Hershey’s TPM operations.

PwC’s dedicated approach ensured Hershey had direct support for complex issues and ongoing improvements. For instance, PwC created an efficiency program to automate the challenging task of updating product organization hierarchies annually on New Year’s Eve. This consistent support across the platform’s design, implementation, and management phases helps stabilize operations, reduce pressure on Hershey’s business and IT teams, and enhance overall company operations.

This ongoing triangular partnership benefits all parties: Hershey enjoys responsive, tailored support; SAP leverages real-time feedback to enhance its offerings; and PwC maintains access to cutting-edge SAP technology, ensuring the TPM platform’s effective operation and stability.

Driving improvements in trade spend efficiency, forecasting and revenue growth

The implementation of a new, cloud-based Trade Promotion Management (TPM) platform by Hershey has significantly enhanced their sales and trade planning processes. This unified platform has not only improved data accuracy but also simplified operations, leading to a 50% reduction in TPM system incidents. As a result, Hershey’s employees have shifted their focus from routine administrative tasks to activities that enhance customer attraction and loyalty.

The platform also incorporated advanced analytics, including A/B testing, which provides deeper insights into consumer behavior and the effectiveness of trade promotions like customized candy displays. These insights have enabled more strategic financial decisions and revenue growth, contributing to a consistent increase in customer ROI. Hershey’s TPM system is now more effective and efficient, supporting the company’s goal of delivering exceptional experiences to customers.