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Research
by ehsan on October 3, 2007
Trade Promotions Planning is one of those things which they call it CRUCIAL in retail industry and it has always been a struggle for supply chain managers because if not managed in a good way, will create a mess in inventory levels.
Because of such issues, Aberdeen Group recently conducted a research to find out what Best-in-Class companies do in the area of trade promotion management. In this post and another one later this week, I try to provide a brief summary of their report.

According to Aberdeen, the current state of the trade promotion management is not satisfactory and 75% of the companies are having problems with their systems. On the other hand, companies are aware that if they can manage this task, they would be able to achieve a higher category profit, higher forecast accuracy, and reduced trade overspends.
Aberdeen also noticed that there are a number of factors which cause Best Practice companies to be able to manage their systems in a better way. To mention some of the important ones:
- Leading companies use POS (Point Of Sales) data as a base for their plans
- They also use cross functional teams from finance, marketing, planning, etc. to come up with their plans.
- They try to analyze the historical demand data at the retail level (specially in presence of promotions).
- They also try to use different means to achieve visibility in supply chain
Because of such issues, Aberdeen Group recently conducted a research to find out what Best-in-Class companies do in the area of trade promotion management. In this post and another one later this week, I try to provide a brief summary of their report.

According to Aberdeen, the current state of the trade promotion management is not satisfactory and 75% of the companies are having problems with their systems. On the other hand, companies are aware that if they can manage this task, they would be able to achieve a higher category profit, higher forecast accuracy, and reduced trade overspends.
Aberdeen also noticed that there are a number of factors which cause Best Practice companies to be able to manage their systems in a better way. To mention some of the important ones:
- Leading companies use POS (Point Of Sales) data as a base for their plans
- They also use cross functional teams from finance, marketing, planning, etc. to come up with their plans.
- They try to analyze the historical demand data at the retail level (specially in presence of promotions).
- They also try to use different means to achieve visibility in supply chain
Tags:
aberdeen
research
scm
supply
chain
retail
industry
logistics
pos
point
of
sales
data
visibility
rese
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/94844
Mr Wong
Vote for What is the best practice in promotion management? (1):
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Response from:
Trade Promotion Management
(12/04/09 6:30am)
THe software for the Consumer Packaged Goods industry throughout North America is offered by MEI
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