Every CPG manufacturer has a TPM system, as well as formal or informal TPM processes; it’s just that some systems are more expensive and/or complicated than others. TPM systems that are already used range from Excel spreadsheets and emails for workflows and approvals to state-of-the-art TPM systems from some of the largest software companies on the planet. Surprisingly, companies using systems from both ends-of-the-scale could be at the same level of TPM maturity.
TPM maturity has less to do with the TPM system that you’re using and more to do with your trade practices, your TPM processes, and how you use your TPM system. A “good” TPM system that is not being used efficiently and effectively adds little value to the organization. Sadly, I have seen this too often in CPG manufacturers in all 3 tiers.
Here are some basic questions to ask yourself so that you can begin to understand your TPM maturity:
- Do we have daily automated links between your ERP system and our TPM system for information like master data, invoice data, and payment data?
- Do we upload consumption data each month to our TPM system?
- Do we load ‘Base Volume’ information into our TPM system and keep it current each month with regular analysis?
- Do we have automated workflows and approvals setup in our TPM system so that pre-approved guidelines and financial controls are being automatically adhered to?
- Do we have our larger customers being controlled with more rigor than our smaller customers?
- Do our short-term promotions go through a standardized and meaningful pre-approval process as well as a rigorous pre-close process?
If you think your company could use a no-charge TPM maturity check, simply email us at firstname.lastname@example.org to start a discussion in how to increase your TPM maturity.