SAP Trade Promotion Management


What is Trade Promotion Management?

Trade Promotion Management (TPM) is focused on strategizing which promotional events have the greatest customer return on the invested marketing dollars. To determine this, companies must capture the expected promotional events, their costs, and the anticipated uplift.

Manufacturers and retailers require real-time visibility into their trade promotion landscape and adjust supply and demand parameters as business scenarios change. Through trade promotion, companies can expand their market share of specific products, better compete against competitors, and increase their retail partners.

With the use of technology, companies can optimize their trade promotion management by:

  • Improving sales planning and budgeting
  • Optimizing customer business planning
  • Strengthening promotional planning
  • Supporting execution and settlement

Key Considerations for SAPinsiders

What is Trade Promotion Management?

Trade Promotion Management (TPM) is focused on strategizing which promotional events have the greatest customer return on the invested marketing dollars. To determine this, companies must capture the expected promotional events, their costs, and the anticipated uplift.

Manufacturers and retailers require real-time visibility into their trade promotion landscape and adjust supply and demand parameters as business scenarios change. Through trade promotion, companies can expand their market share of specific products, better compete against competitors, and increase their retail partners.

With the use of technology, companies can optimize their trade promotion management by:

  • Improving sales planning and budgeting
  • Optimizing customer business planning
  • Strengthening promotional planning
  • Supporting execution and settlement

Key Considerations for SAPinsiders

  • Improve effectiveness of trade dollars and supply chain by linking products in orders to specific promotions. According to Michael Debevec, President of Debevec Consulting, Inc., companies using TPM assign attributes to promotional spending that help them analyze actual results and compare the actuals to the original plans. “You assign each promotional event an identifier that you link to a new type of condition record, a campaign determination record,” he writes. “During order processing, you use the combination of customer, product, and date to determine if an active promotion is available. If one is available, the system stores the promotion identifier with the sales order line item.” Read the full article to learn more about the SAP TPM landscape and key system components.
  • Avoid supplier stockouts by integrating trade promotion management with demand management planning. Planning a trade promotion with a retailer means ensuring product is available to meet expected demand. Not doing so leads to customer dissatisfaction and impacts to brand reputation and future sales. Manoj Ambardekar, an SAP subject matter expert with more than 20 years of IT and manufacturing experience, says to avoid stockouts, you need to determine the promotion uplift — the expected increase in demand beyond the baseline forecast. Doing so provides the total demand for a promotion. “TPM helps managers create a trade planning structure and gain visibility into trade promotions. Managers can identify the most profitable customers, fastest-moving product groups, and most effective types of promotions (e.g., end-of-aisle displays or front-page ads),” he writes. Read the full article to learn the configuration steps of a business scenario for a trade promotion.

489 results

  1. Business Drivers for SAP Trade Promotion Management

    Reading time: 19 mins

    Learn about SAP CRM Trade Promotion Management (TPM). Find out what the TPM solution landscape looks like, the components of TPM, how it affects order execution, and how can you tie actual shipments back to your original promotional plans. Key Concept SAP Trade Promotion Management enables a company to capture expected promotional events, their costs,…...…
  2. Track Intercompany Loans Using SAP’s Transaction Manager Module: Part I

    Reading time: 39 mins

    Learn the process flow, the integration points with other SAP modules, and the advantages of using SAP’s Transaction Manager for intercompany loans. Key Concept Intercompany loans are loans made from one business unit of a company to another, for various reasons. It is important to remember that intercompany loans are an asset (an investment) in one entity and…...…
  3. Improve Promotion Execution with Responsive Promotion Management in SAP SNCResponsive

    Reading time: 12 mins

    SAoexperts/SCMLearn how using dynamic or reactive promotion management — rather than static promotion management — can reduce the risk for stock-out situations and overstocking at the retailer. This approach directly contributes to the success of a promotion and therefore to the company’s top-line results. Key Concept As part of the Responsive Replenishment scenario, the SAP…...…
  4. Track Intercompany Loans Using SAP’s Transaction Manager Module: Part 2

    Reading time: 49 mins

    Learn the configuration steps needed for the intercompany loans process outlined in the article “Track Intercompany Loans Using SAP’s Transaction Manager Module, Part 1.” The configuration is in line with the process described in part 1 of this article. Key Concept When companies reach a more complex size, they often need to implement financing processes…...…
  5. Manage Promotion Planning in SAP APO

    Reading time: 13 mins

    Learn how promotion planning can be configured in SAP Advanced Planning and Optimization (SAP APO) to model special events or promotions separately from the normal forecasting process. Follow a step-by-step procedure to configure and run the associated master data objects, run simulations, and interpret the results. Key Concept Promotion Planning is a special feature provided…...…
  6. Avoid Stockouts by Integrating SAP APO DP and SAP CRM Trade Promotion Management

    Reading time: 11 mins

    Learn how to transfer trade promotions created in the Trade Promotion Management (TPM) function of SAP Customer Relationship Management to SAP Advanced Planning & Optimization Demand Planning (DP). If you plan for a trade promotion with a retailer but cannot meet the demand, it will lead to customer dissatisfaction and potential loss of future sales…....…
  7. Trade Promotion Management: Ensure a Promotion Uses the Right Buying Pattern

    Reading time: 18 mins

    Learn how mySAP CRM Trade Promotion Management uses the data within buying patterns to distribute the predicted promotional volume. Then find out why the system might override a default buying pattern and what you can do to avoid this. Key Concept Trade Promotion Management (TPM) helps you plan and execute trade promotions. A part of…...…
  8. A Guide to SAP’s Credit Risk Analyzer

    Reading time: 45 mins

    SAP’s Credit Risk Analyzer sub-module focuses on measuring, analyzing, and controlling counterparty risks. Learn how to use and configure it. Key Concept The Credit Risk Analyzer includes a risk control through limits and flexible limit management with online monitoring and reporting. This functionality allows corporate executives to set limit controls in their SAP systems, monitor…...…
  9. An Overview of Using the Credit Facility Functionality

    Reading time: 21 mins

    Learn the process flow, the integration points with other SAP modules, and the advantages of using SAP’s Transaction Manager for credit facilities. Key Concept Most companies have credit facilities with their primary bank. SAP’s Transaction Manager module can be used to support the life cycle of credit facilities. The credit facility functionality is included in…...…
  10. Discover the Financial Aspects of Trade Compliance with GRC Global Trade Services

    Reading time: 15 mins

    Although SAP GRC Global Trade Services works very closely with logistics and interfaces with supply chain processes, it affects Financial Accounting in a number of ways as well. Learn how the functionality affects finance functionality and features directly and indirectly. Key Concept GRC Global Trade Services supports the production of international shipping documentation, including commercial…...…