TPM & RE Closing the Loop with G2
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AFS 2016 User COnference
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TPM & RE Closing the Loop with G2
- 1. TPM & RE Closing the Loop with G2 2016 AFS User Conference
- 2. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Michelle Henry, Professional Services EMEA Delivering RE/DSD Solutions to Tier 1 Consumer Goods, Pharma, Beverage & Brewing Clients since 2007. Joined by: Andres Jejen – Director of RE Product James Caudill – VP Product Marketing Speaker
- 3. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Agenda • What is ‘Closing the Loop’ with TPM & Retail Execution • Why ‘Close the Loop’? • User Story • How Do You ‘Close the Loop’? • Analysing My Closed Loop Data • Automated Alerts • Recommendations & Benefits
- 4. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • Trade Marketing • Planning, Budgeting • Analysis, Settlements • Retail Execution • Visit Planning • Distribution, Orders, Audit • Promotion Sell-In, Execution & Compliance Background 0 10 TPM Report Series 1 Series 2 Series 3 RE Report 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
- 5. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • The ‘Execution Compliance’ piece completes the picture • Demonstrates the positive & negative impacts of execution quality on the promotion • Supports the ability to correct on the fly to ensure success Why is it important? TPM Budget % Uplift EPOS Settlements Spend Field Rep
- 6. ©2016 AFSTechnologies, Inc., Proprietary and Confidential “I manage trade promotions. I am running a campaign in large format modern grocery chains. I want to see 1) How is the promotion running – while it’s active and 2) How did the promotion perform overall.” For this, I want a view of: Promotion % Compliance Product Availability Product & POS Placement Overall Sales Uplift Overall ROI User Story Define Execute Analyse Improve
- 7. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 1 – Define TPM • I’ve setup my promotion in TPM Retail based on my plan, budget and overall strategy. • I’ve calculated my baselines and forecast figures • Once ready to execute, I activate my promotion and initiate the process of sharing the data with the Sales Team. Define Execute Analyse Improve
- 8. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 2 – Define Retail Execution • Sales Team to define the In-Field Tasks required to validate the campaign drivers and check promotion execution. • The Sales Administrator has created Field Tasks aligned with my Trade Promotion including: • Promotional Products • Targeted Customers • Compliance Questions Define Execute Analyse Improve
- 9. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 3 – Execute In the Field • The field Rep completes both Overall Compliance questions and Product audits Define Execute Analyse Improve
- 10. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Define Execute Analyse TPM Define Execute Analyse RE How do I ‘Close the Loop’? Closed Loop Output Customer Hierarchy TPM Data RE Data ERP Sales Data
- 11. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 4 - Analyse • I want to see Retail Clients achieving 80% Compliance • My Exception .pdf shows that POS Material is non- compliant • In G2, I adjust the view to see the specific exceptions or non-compliance by Chain Conclude • I do not have to pull the promotion, just correct it! Exception .pdf via Email or SMS My G2 Solution Tab Define Execute Analyse Improve
- 12. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 4 – Analyse my data • Promotion View in G2 Define Execute Analyse Improve
- 13. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Step 5 – Improve my Promotion • I can manage by exception, adjusting as I go… • Whole Promotion Non Compliant… • Part of Promotion Non Compliant… • Trade Promotion Optimization • *complete • Overall analysis… • Execution compliance as an overall percentage alongside my % Lift and Overall ROI • What worked well & what should we try to emulate again? Define Execute Analyse Improve
- 14. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • Define Data Exceptions • Alert Type – SMS, Email Automated Alerts “Discovery G2 has identified an exception. Full data is in the attached .pdf file.”
- 15. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • Create the filter tolerances according to your desired % compliance Automated Alerts
- 16. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • Integrate your TP planning process with Sales • Integrate your datasets • Define your tolerances and alerts • Measure the whole operation Summary G2 TPM RE
- 17. ©2016 AFSTechnologies, Inc., Proprietary and Confidential • Integrate the exceptions as part of your overall analysis • Fast response & adjustment of promotions across TPM & RE • Build the complete picture of TPM & RE analysis • Build your Commercial Agreements around the ability to measure specific KPI’s • Control trade spend & drive better value from Retail Chains Benefits of Closing the Loop
- 18. ©2016 AFSTechnologies, Inc., Proprietary and Confidential Thank you Q & A Next Session: Retail Activity & Digital Image Recognition
Editor's Notes
- I’m joined by my colleagues Andres Jejen – Retail Execution Product Director and Jim Caudill – VP of Product Marketing
- So what do we really mean when we say ‘Closing the Loop’? Let’s look at some simple and typical behaviours within this area: Trade Marketing chooses an excellent tool for planning, budgeting and managing their Trade Spend, Promotions & Settlements Sales also chooses an excellent tool for planning & executing their field activity, sophisticated call planning, distribution checking, ordering & compliance Trade Marketing may share some Promotion details with the Sales Team so that they can execute some compliance checks Field Sales may capture some compliance data in order to share with Trade Marketing at the end of a month/quarter or campaign Even though each team is very good at executing within their own area and even though they may use the same reporting or BI tool, they can often operate quite separately. Reports are built per ‘department’ as opposed to per ‘operation’ with the data managed and consumed quite separately. Typically, month end/quarter end or Promotion end we will gather data from Sales, Trade Marketing, Supply Chain & EPOS/IRI/Nielsen external data to make an assessment of success of the Promotion – which enables better planning for next time. Of course, there are alerts in place to trigger adjustments associated with the EPOS throughput and supply chain to recalculate the volume adjustments, but how do you understand what has really impacted the Promotion – negatively or positively – at store-level & from an execution point of view? It’s a common story which sees us retrospectively assessing the overall performance of our Trade Promotions. The execution piece of this is key to completing the picture Closing the Loop is about joining up your Trade Promotion and Execution Data in a single tool to perform comprehensive and complete analysis of the promotion. By closing the loop there are great benefits during a promotion lifecycle – if you are using integrated tools and processes this will enable us to navigate our activity on a day by day basis and respond to field conditions AS THEY CHANGE. Correcting as you go, addressing issues before they impact your bottom line and generally operating in an Agile way means you can increase your revenues through the sales uplift intended by the promotion, without increasing your Trade Spend.
- Why is it important to close the loop? Compliance Execution is often the missing piece from the complete picture of success or failure of promotions It gives you a platform from which you can confidently negotiate commercially with your chains Combining your TPM & RE data gives you the ability to navigate the promotion while it’s active
- So let’s set the scene here and put this into some real context; who am I & what do I need? I’m a Trade Marketing Manager, I’m running a promotion across all large format Modern grocery chains. I will work with the Chain Account Managers to agree the specifics of each Chain agreement. Once in place, I will want to do 2 things: I want a rounded and complete picture of the promotion performance within each chain. I want to see my % lift and ROI analysis. I also want to see the performance at each compliance point, for example, was the agreed price point correct? Was the promotion in the agreed location? Were all product variants on the promotion available? I can more accurately manage my investment if I’m able to demonstrate to a chain that poor execution affected the success of the promotion. Equally, I want to see what made a successful execution. 2) I want to Navigate the promotion while it’s still active – ensuring that I’m aware of any issues which will affect the performance of the promotion and the overall ROI. This will help me understand if I need to make adjustments to the promotion, to stop it or to extend it or just do something to make it as successful as possible.
- The first step in this is the definition of my promotion, I’ve set up my promotion in TPM Retail, I’ve secured budget, I’ve calculated my forecast and I’m ready to run the promotion. I activate it and share the relevant & necessary details with the Sales Team to execute in the field. This should be an automated process to keep the 2 systems in sync. This happens by identifying a process by which you can share key data between TPM and RE. So what do we need to see, share, combine to create this integrated process: Customer data – typically we see a variation in the ‘Master Data’ used within TPM and RE – however, it’s not VAST and fairly straightforward to identify common alignments to create an integrated dataset from which you can report later Promotion data – promotions planned in TPM and requiring some kind of field execution. Promotion ‘header’ data so your Promo dates for start, buy-in, objectives and mechanics then, crucially….the Products! Promotion Products including POS Materials – compliance points – so presence, location options, positioning, facings, POS Collaboratively agreeing a structure and process is the first step in Closing the Loop.
- The next step in definition is to create the promotion within the Retail Execution tool. The promotion has been created with the required validity dates for Buy In and Execution. The purpose (or mechanics/tactics) of the promotion are made visible to the field representative. The required compliance points are set up: This is done with a combination of product audits and compliance questions – all of which contribute to the calculation of success and the ability to address issues as they appear. Activating in TPM and RE completes your first step of definition. The Promotion is now active in the Field and your Reps can begin compliance checking.
- When in the field, the rep is able to capture precise data and supporting pictures related to the execution and compliance of the promotion. This is only available for the Customer to whom the Promotion has been assigned. In this example, the Overall compliance – is captured with 3 distinct questions. -Is the promotion on at least 5 checkouts? -Are all promo product variants available -Is the promotion Banner present? Typically, you’ll be validating the agreed location, presence of materials, product availability. The Rep then captures promotion product information related to secondary locations ( so capturing the “5 checkouts” ) and whether the products are actually available. These can and should be entirely tied into your commercial agreements with your chains. So, all my Reps are in the field and my data starts rolling in….
- Closing the loop is straightforward; it’s just about taking our data and joining it all up…being able to blend your RE & TPM data In AFS G2 we can do this – forming a combined dataset from TPM, RE & Sales Data We want to move from a silo approach to definition, execution and analysis as in the stacked diagram for TPM and RE on the left to the integrated approach on the right. Integrating the processes of definition between TPM and RE and then combining the analytics within a single data set. We want to be able to report on all aspects of the Promotion Analysis. Let’s take a look at what I can do to achieve that….
- The day after activation, I receive an Automated Alert containing a PDF file which lists my ‘Exceptions’. In my current promotion I have set up a rule – I need to see Retail Clients achieving 80% Compliance – my exception view shows stores falling below the desired target The exception data shows me that there is clearly a problem with Kroger and the same Compliance Point is cropping up. Right away I can pretty accurately deduce that the POS Materials have not been delivered to Kroger. In other circumstances – say the Promotion was not correctly setup by the store or it was not in the correct location or indeed, the products hadn’t been merchandised properly, I can use G2 to analyse my data, drilling through the view to see the specific compliance exceptions and I can view the Sales for that non compliant Chain and compare those to a Chain where the compliance is at 80% and demonstrate the relative uplift. -> In this case the POS materials have not been delivered. The Product is in the agreed locations but without the appropriate banners, clipstrips etc. Disaster? Not quite. By using these exception reports I can be quickly notified of problems – I can see where the exception is occurring and more importantly, WHY! This means I can make a decision to suspend, stop or adjust the promotion. In this case, I do not have to pull the promotion because of poor sales – I can see the full picture and the reason for poor sales and I can quickly resolve the problem.
- In G2, I have worked with my BI administrator to define views which enable me to view the combined financial performance of my promotion vs forecast – I can view this per chain, banner, territory as I please I have also got views which enable me to track the execution, so I’m able to see the promotion and its various compliance points – I can go a step further than just creating a grid of data and implement some intelligent tolerances and alerts which will monitor each compliance point and alert me via email when a customer, chain or banner (whichever I define) falls below the required level of execution. I’ll come onto that in a few minutes. In this example, I can see that within my Metro Chain for the ‘Veggies for Spring’ promotion, my Compliance is at 100% for the Metro Chain vs a target of 50% and that my related uplift is at 127%.
- So once I have my analysis and I understand what it’s telling me, I can do one or both of 2 things; I can actively respond to the promotion while it’s still in progress; in this case – address my POS material supply issue and re distribute the field sales reps to exception check again I can create a clear overview of the compliance achieved, where it fell short or where it was particularly successful and hold that side by side with my ROI and Lift results. From there I can see where the issues were and re-negotiate with the chain or banner on the Paid Trade Spend or know what to replicate next time for a successful execution. Longer term, we’re working towards aligning exceptions with suggested corrective actions.
- Defining your Automated Alerts enables you to select the Datapoint you’re interested in monitoring, and creating an exception rule I will talk more about this in my session on Perfect Store and Management by Exception session on Friday morning Alerts via text or email to notify the right person of something which is out of the ordinary In this case, I’ve setup an exception report related to the Compliance Question for my Spring Haircare Promotion. As the data comes into G2 from the Retail Execution application, it identifies the exceptions and creates the message and exception report. This could be daily, hourly – however frequent is necessary. This report is generated overnight….I can quickly tell from this exception report that that there is one point of non-compliance related to the POS material. Upon further investigation when I get to the office, the EPOS data is also raising alarm – promotion sales are very low for Kroger stores in the xxx area for the previous day. Because I know this NOW, today, I can respond by resolving the problem NOW.
- Using G2 we select the report on which we want to create the MBE We define the frequency of the exception monitor We assign it to a role or user and define the method of alert
- Create a robust process of TP planning between Trade Marketing and Sales; understand the plan and ensure that you have capacity to execute it in the necessary way. Align your data. At the very least ensure that you understand where the data is aligned and in the best case, create a fully integrated data set. Define your tolerances and alerts according to the agreements made with Retailers. Measure the whole – processes which dissect the budget and management of 2 separate teams have to be measured across ways rather than within each individual team, in the example I’ve used in this presentation – re-visits are additional ‘costs’ to the Field Sales Team but offset against the success of the promotion and the relative compliance. Equally, a situation whereby poor compliance = deduction of payment to the retailer it becomes even more necessary.
- Closing the loop enables you to join up the whole operation meaning that you can respond to exceptions quickly, report on the complete promotion in terms of value to your business and looking ahead, with a sound process of integrating TPM with RE – you can start to build your Commercial Agreements around the use of exception reporting and the ability to accurately measure the execution This means that you hold the power – this gives you the upper hand in negotiating with your Retail Chains – and supports the creation of maximum value from your Trade Investments