Over the past few years, I’ve been attending workshops with business teams on aligning business processes with Trade Promotion Management Optimization (TPM & TPO) systems. These sessions would typically lead to broad level agreements on processes across different functional areas touching finance, sales, marketing and supply chain amongst others.
As part of the context and objective setting, business users highlight the following as the business problems that they would like the new solution to address:
In these detailed sessions where we try to put a structure and process to find solutions for the above problems across organizations, a common thread comes out – availability of baseline sales data.
Over the course of implementations, I realized that agreeing and putting a structure around baseline sales is very critical for the acceptance of the solution and, ultimately its success. The reason being, sales baseline plays a critical role in:
When sales baseline plays such a critical role, why is it such a tough nut to crack? The following graphic puts a perspective to this challenge.
Few ways to address these issues are:
Does this resonate with what you have encountered in your organization? With Trade Spends increasing and organizations looking for optimizing spends, a base for comparison and benchmarking becomes all the more pertinent.