What is TPM? (Trade Promotion Management)
Trade Promotion Management or TPM is the managing and tracking of trade dollars that manufacturers are spending with retailers.
When you go to the grocery store and see a really great price on a product, do you know who covers the cost on those low prices? It is actually the manufacturers.
What's the Significance in the TPM Category?
For most manufacturers, trade spending represents the #2 line item on their P&L, and 10-30% of their revenue is their trade budget. This cost touches every part of the organization; sales, marketing, manufacturing, finance, operations and supply chain. Is this cost worth it to manufacturers? What is their true lift and incremental sales for a promotion? More money is going into retailers’ pockets, and less being passed directly to the consumer.
Why is There an Issue?
Many companies don’t track their trade dollars or use inadequate tools. 59% of companies still use Excel to track promotion data. Without one central system the manufacturer can use to view upcoming promotional events, sales departments are dependent upon the marketing department to provide them with any last minute updates.
Why a TPM (Trade Promotion Management) Solution?
You need one central location for all promotional information, accessible by all departments, that contains consistent, accurate and immediate information.
- Your sales people should spend their time selling your products, not doing administrative work.
- Your finance department should have immediate access to the most up-to-date financial information, enabling them to easily analyze the company's current situation.
- Administrators in your company should easily clear deductions, without spending half the day looking for a deduction back-up.
- Manufacturing should have a clear understanding of upcoming production quantity, to enable accurate production and prevent cutting.
A TPM solution makes this is all possible!
