Trade spend is one of the largest expenses companies face. This is an area in which an average Consumer Packaged Goods company may spend well over 10% of its annual revenue in an attempt to shape demand. Therefore, it is critical to ensure that these funds are allocated efficiently and cost-effectively.
Many organizations tend to repeat promotions on an anniversary basis while lacking the insights on the actual impacts of performing or withholding promotions. There is a pressing need for tools that support the quantitatively driven decision-making process in real-time. These decisions include:
Analyzation of the impact of historical events
Understanding their impacts on driving demand
Cannibalization of future demand
Shaping the landscape for the product as well as the product category where only robust and detailed analytics can drive optimal decisions
There are several solutions within the market to support trade planning, however many require costly licensing and implementation fees. There is an inherent need for a robust yet lightweight solution that enables cloud-based promotion management and robust real-time analytics.
Solution Overview
Analytical Factor Trade Promotion Planning (TPP) – An extension to Oracle’s Demand Planning Cloud
While the current Oracle platform supports supply and demand planning, there is no component to address the critical process and analytical requirements of trade planning.
Analytical Factor Trade Promotion Planning, a PaaS based solution, was developed as an extension to Oracle’s Demand Planning Cloud solution that enables end-to-end planning on the cloud. This solution leverages the core technology and information stored in Oracle Development Management Cloud (ODMC) and uses it as a basis to calculate promotional impacts.
TPP will serve as the central portal and repository to enter, view, and interact with promotions. Account managers and sales analysts will have access to top-down and bottom-up views of the entire promotional plan for the enterprise where reports will highlight the most and least effective results of various promotions. This enables the workforce for both timely and effective planning.
Based on real-time and statistically driven feedback all stakeholders in the promotion planning process will be enabled to make strategic and informed decisions. TPP will drive efficient and highly profitable promotion planning as well as enabling utilization of available budgets.
Trade Promotion Planning is a Platform-as-a-Service (PaaS) application that is deployed in conjunction with Oracle Demand Management Cloud. It is hosted on the Oracle Cloud platform and has pre-built seamless integration with Demand Management. The system can support the same user-structure and is embedded in Demand Management for unified user experience.
Features
60% Cost Reduction
Shifting to a cloud-based trade solution reduces initial and sustaining costs by more than 60%
Improved ROI
Over 40% of trade spending is not effective, analytically driven post promotion ROI dramatically improves future promotion planning, and increases spend effectivity
Improvement in Customer Service Levels
Taking the guesswork out of the effects of future promotions reduces stock outs and improves customer service levels
Streamline Promotion Creation
Centralized promotion repository and codified approval process speeds up promotion creation while increasing accountability and visibility
Analytical Factor Trade Promotion Planning is also listed on Oracle Cloud Marketplace. Check it out here.