White paper: Comprehensive Trade Management (PDF) - Oracle

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programs on gaining and retaining customers, while recognizing retailers’ needs to enhance their own image. Manufacturers are increasingly conceding to retailer-driven programs because retailers have become far more intelligent about their shoppers, and the retailers simply have more power in the relationship. Manufacturers need to improve their understanding of retail data to regain a seat at the table. One response manufacturers have made is to create dedicated cross-functional account teams. While a capitulation of sorts to customer consolidation, the increased focus of a dedicated team gives manufacturers the opportunity to become more attuned to retailing realities. So far, this fundamental shift in resources has not yet been matched by changes in companies’ functional organization / power structure, nor their IT environment. (For example, there is no “system of record” today for the strategic account team.) A new paradigm is required for management of the trade channel relationship. The Case for Collaboration With the channel often driving the direction, tactics, timing and funding, it is easy to believe that the manufacturer has little or no authority to make well-intended promotion recommendations. But to attract the loyalties of the consumer and garner ongoing prominence among the trade channel retailers, manufacturers are continuing to escalate the role of trade channel execution and promotion. The reality is that both partners have a common goal: motivate the consumer to enter through the doors and hold their loyalty once they do. Attracting the consumer is nothing new, of course. But today’s consumers sophisticated demand that promotion strategies evolve from art to science – bordering on rocket science. Industry initiatives such as VICS Collaborative Planning, Forecasting and Replenishment (CPFR) have demonstrated that retailers and manufacturers can work together to reduce inventories. Next they need to collaborate to address trade management challenges. 8
Trade Management Challenges There are six key challenges that manufacturers must confront to enhance their trade management effectiveness: 1. Establish an effective trade management process 2. Invest in technology to automate the process 3. Capture and harmonize disparate demand signals 4. Improve account planning and retail execution 5. Transition promotion planning from an art to a science 6. Get real-time visibility to trade plans and promotion results #1: Establish an effective trade management process An effective comprehensive trade management process is part of a larger integrated sales and marketing process, and links strategic planning, tactical planning and execution. Ideally, there are seven “pillars” of functionality that span an integrated sales and marketing process. Innovation Integrated Sales and Marketing Demand- Driven Operations Business Mgmt and Control Brand and Category Management Consumer Marketing Price Management Demand Signal Management Advanced Trade Planning Trade Promotion Management Retail Coverage Planning & Execution Business Intelligence / Master Data Management The specific pillars that are related to trade management include: Comprehensive Trade Management is the core functionality that delivers the managed ROI of trade funds and spending. o o o Advanced Trade Planning – The processes of account planning that include forecasting, sales volume planning, predictive modeling and fund allocation. Trade Promotion Management – The processes surrounding fund management and accounting, claim audit and deduction management, and settlement. Retail Coverage Planning and Execution – The processes of trade and brand coverage planning, objectives planning, route scheduling, visit planning, and on-site execution functions of performance compliance, store audit, cash and order management. The latter is generally performed on a disconnected mobile handheld device. 9
Page 1 and 2: Comprehensive Trade Management Resp
Page 3 and 4: Introduction Manufacturers of consu
Page 5 and 6: etailers who must cater to them in
Page 7: growth up 1% in the second half of
Page 11 and 12: o o Setting IT budget priority that
Page 13 and 14: process. Sales executives today nee
Page 15 and 16: How the Process Works A comprehensi
Page 17 and 18: The features, functions and benefit

White paper: Comprehensive Trade Management (PDF) - Oracle

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