White paper: Comprehensive Trade Management (PDF) - Oracle

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Oracle’s Comprehensive Trade Management Suite responds to and solves the CG industry business challenges Challenge #1: - Oracle domain experts help review and evaluate your company’s processes against industry best practice requirements, process and technology. - We help you reengineer and support a process that meets CTM standards and your company’s business controls Challenge #2: - Oracle’s phased approach to comprehensive trade management enables you to add applications separately or together, depending upon your needs Challenge #3: - Oracle’s DSR captures direct retailer POS and provides both the retail and manufacturer data schema to portray key category, sales, competitive and scorecard intelligence at the lowest SKU levels and the most granular retail outlet views - Oracle CG Analytics enables rapid, precise and trustworthy business performance insights that drive profitable execution of promotions Challenge #4: - Oracle’s Marketing Resource Management (MRM) module enables powerful marketing, brand and category programs to be created along with terms, rules and guidelines that flow through to execution and settlement -Oracle’s Advanced Trade Planning account planning coupled with Predictive Trade Planning and Promotion Optimization provides a sales volume planning and trade promotion management combination that is industry’s best of breed. - Oracle Retail Coverage Planning and Execution ensures full scope cycle planning, objectives and in-store compliance audits Challenge #5: - Oracle Business Intelligence, combined with the DSR and CG analytics will deliver a powerful foundation of knowledge that drives good decisions throughout the CTM process Challenge #6: -Integration with ERP enables real time financial liability and spending updates - Oracle mobile handheld retail execution monitors on-site in-store compliance to promotions and pricing tactics 5. Promotion Optimization: To validate the promotion model, the account planner should be able to use a promotion optimization tool to develop the most effective scenario based on the planner’s individual objectives/goals and constraint criteria. 6. Promotion Planning and Fund Management (2): The promotion plan accrues the fund liability, assigns the fund, and enables the planner to override the default funding by manually assigning and apportioning across multiple funds if necessary. Once the negotiation is complete with the retailer, the planner finalizes the promotion through an approval routing process that, upon completion, queues the promotion for execution and performance. 7. Retail Coverage Planning: The merchandising team sets retail execution objectives, performs trade and brand coverage planning, visit scheduling and determines on-site store requirements for the route sales rep, merchandiser or auditor. 8. Retail In-Store Execution: Inside the store, the rep or merchandiser uses mobile technology to conduct the business activities mandated by the promotion. 9. Settlement and Deduction Management: The customer service team handles claims and rebate audits, deduction management and settlement. The challenge a consumer goods manufacturer faces today is to make all of these individual disciplines work together across a framework of business intelligence, analytical tools and master data management. Account managers should be able to check performance using ongoing scorecard tracking of key performance indices such as inventory levels, distribution logistics, promotion compliance and an array of other important metrics. There must be a strong integrated analytics and business intelligence capability that supports the entire process through real time reporting, userconfigured dashboards and master data management technology. An Incremental Approach Combining all of these functions into the same foundation, while preserving the best-of-breed advantages of individual applications offers consumer products companies and their trade channel partners a powerful set of benefits. Achieving comprehensive trade management requires significant change management as well. 16
The features, functions and benefits of a comprehensive trade management process and supporting technology are often thought of as a phased approach that begins with the basic transactional foundation that, with the pressures of regulatory mandates has resulted in a number of companies streamlining this foundation already. But where a comprehensive trade management initiative begins to produce more benefit is when you begin evolving toward more advanced capabilities to predict and optimize promotions, ending with the transformational capability to collaborate on events with channel partners. TRANSFORMATIONAL FOUNDATIONAL FUND, PLAN, EXECUTE, PAY • Optimization of speed and efficiency of trade management transactions • Implementation of spending controls ADVANCED PREDICT AND OPTIMIZE • Predictive modeling to improve trade spend efficiency & effectiveness • Trade & demand planning systems integrated for near real time demand forecasts • Trade & financial systems integrated for improved management and reporting on trade costs COLLABORATE • Near real time trade activity visibility across enterprise: –Enterprise collaboration on single sales forecast –Alignment of brand & trade marketing plans • Near real time collaboration with retailers on sales, marketing and demand planning • Proactive management of store level retail execution Comprehensive Trade Management Summary and Conclusion . Comprehensive trade management addresses the Trillion Dollar Challenge of trade spending in the consumer sector. Case studies of manufacturers who have made this journey illustrate the potential: 13 Reduction overspend by up to 20% one year after implementation 15% reduction in stock-outs 12 – 28% increase in efficiency in trade promotion management 13 Various sources including AMR Research, Booz-Allen Hamilton and documented value attainment from existing Oracle customers, 2007 – 2008. 17
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White paper: Comprehensive Trade Management (PDF) - Oracle

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