Is it Time for You to Look at TPO?

Having worked exclusively in the TPM/TPO space for over 15 years and having seen the state of most CPG companies today, my short answer is ’Most Likely Not’.  In order to be successful at anything, you need to lay the proper foundation.  In this case, the following needs to be true in order to be successful in TPO:

• You need to have a good Trade Promotion Management system
• You need to have well-followed (and I would recommend, ‘documented’) TPM processes You routinely perform analysis on your promotions today
• The amount you spend on Consumer promotions will warrant the start-up and on-going costs of a TPO system, as TPO solutions only deal with direct consumer promotions
• You have such a good relationship with your larger retailers that you can convince them that changing their promotional plans with you will be mutually beneficial
• Finally, you know that your monthly workload within your Sales Operations team will increase and that the information you receive will need to be filtered through experienced CPG professionals in order to explain what the TPO graphs, etc., will tell you and then finally use that to predict the future

My suggestion is that instead of spending time and money on TPO, you ‘invest it’ on raising the maturity level of your TPM solution and related TPM processes.   No matter where you are today on the TPM maturity scale, there is always room for improvement.  Next month, I will talk about TPM maturity and suggest a scale that you can use to measure your organization.

If you would like a TPM maturity assessment, please send a request to my attention, and I will work with you to develop a plan to be ready for a TPO solution.

Rick Beyer
Project Director

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