At many CPG companies, promotion planning, volume planning and annual business planning are executed via separate mechanisms with varying levels of sophistication. Each of these areas often uses its own distinct metrics, resulting in three sets of predictions for volume, revenue and spend, with only a distant relationship to one another. An attempt to reconcile the differences inevitably requires compromise and often results in inherent inaccuracy, which may cause inefficiently executed trade promotions and wasted dollars.

A closer look at how separate processes affect spend efficiency reveals a variety of undesirable consequences. Lack of an integrated process creates disconnect between the sales and supply chain teams, leading to missed opportunities, underperforming promotions and additional costs. Sales may plan a campaign with a certain expectation for the volume it will drive, but the supply chain, operating on a different set of expectations, may place inadequate or excess inventory into distribution, leading to wasted dollars.

When companies are unable to check wastage, they begin to view trade promotion inefficiency as a cost of doing business. This is even more dangerous as it can lead to additional inefficiencies such as deduction errors and unscrupulous behavior. Some companies shy away from trade promotion opportunities due to lack of visibility, thereby missing revenue and brand enhancement opportunities.

When companies are unable to check wastage, they begin to view trade promotion inefficiency as a cost of doing business. This is even more dangerous as it can lead to additional inefficiencies such as deduction errors and unscrupulous behavior. Some companies shy away from trade promotion opportunities due to lack of visibility, thereby missing revenue and brand enhancement opportunities.

A seamless, integrated approach to promotion planning eliminates costly compromises and helps CPG companies take advantage of data to greatly enhance the productivity of their trade promotion dollars. A unified trade promotion planning business process is anchored in an integrated technology platform. Solutions such as Promax PX are closed loop solutions that enable meaningful interaction among all the different business functions that are party to trade promotions planning and execution processes.

Scott Trevena - CTO & Director, Wipro Promax Analytics Solutions

With over 25 years’ experience in Software development and the CPG industry, Scott brings an extensive wealth of knowledge to Wipro Promax Analytics Solutions (WPAS) and their development team. WPAS is now a Wipro Group Company, formerly known as Promax Applications Group for which Scott was one of the founders and owners of the business. Scott is responsible for the Technical and Functional development of the Promax PX Trade Promotion Management and Trade Promotion Optimization solution. Prior to Promax, Scott established an IT and Services Industry company called Trade Systems Technology P/L (TST) where his experience in Account Management and computing were key attributes in the creation of an outstanding TPM application. In 2007, TST merged with Promax who was also a key provider of solutions in the TPM/TPO space with the objective of taking the combination of the Promax/TST solution globally. In the 6 years before establishing TST, Scott worked in a variety of roles in Unilever, a privately held CPG company. These roles encompassed Trade Systems Manager, Account Manager and State Sales Manager.