I’ve been implementing TPM solutions at CPG companies for over 15 years and, in that time, there have been many changes to the ways that trade money with retailers is given and tracked. One of the more significant changes is the way that CPG companies are now required to pay for events and price reductions when they have little or no opportunity to confirm their authenticity. The most common promotions used to be based on shipments from the manufacturer to the retailer where the manufacturer had timely, concrete proof of the cost of the promotion.
Consider the following business practices that are very real today:
- Consumer events, like Displays, Feature Ads, Shelf Placements and Price Discounts, are not executed in 100% of the stores as laid out in the contract between the Manufacturer and the Retailer’s Head Office.
- Manufacturers learn, from the Retailers, that they owe a specific amount of money and are told about Consumer sales and the accompanying charges for a promotion. Many times, proof of performance is not supplied.
- Manufacturers plan in-store promotions without any knowledge of what the expected sales would be in-store if the promotion had not run.
- In many cases, Manufacturers sell to Distributors and then plan Consumer promotions with Retailers and are never told about the Distributors’ sales to the Retailers.
The way to start to solve for these changes in trade practices and regain control of your trade spending is to document your Distributor to Retailer sales and Retailer to Consumer sales data in your TPM solution. Only having your shipments data within your TPM solution is no longer good enough in today’s complex trade environment.
At UpClear, we have dedicated ourselves to help CPG companies gain control of their trade spending.
Our BluePlanner TPM software offers great flexibility in recording and tracking volume and spend at various levels in trade / distribution layers. We continue to strategically improve capabilities to not only track non-shipment based promotions (eg. Retailer & Distributor promotions), but to also provide full graphical access to historical sales information.
Contact us and we’ll work together to validate your distributor and retailer promotions!