Director of Product Management and specialist in the Trade planning and management space, Joe Cartwright talks about increasing business value with AFS TPM Retail.

1. WELCOME

2. TPM RETAIL INCREASING BUSINESS VALUE
2018 AFS TPM RETIL USER CONFERENCE
“GAINING GREATER VALUE FROM YOUR SOLUTION ”

3. SPEAKER INTRODUCTION
Joel “Hoss” Cartwright,
Director Product Management, AFS TPM
 20 years plus in Consumer Packaged Goods: Finance/Accounting, Sales Operations
 Sara Lee Foods, US
 Sunny Delight Beverage
 Kimberly-Clark
 MEI TPM Solutions
 IBM Demand Tec
 AFS Technologies

4. AGENDA
 Welcome
 Vendor versus Partner
 Objective
 Define Value Assessment: Quantity vs. Quality
 Value Assessment Details: Assigning a value to Current Functional Differentiation
 Value Assessment Details: Assigning a value to Future Functional Differentiation
 Questions

5. PARTNER VERSUS VENDOR
AFS TPM

6. VENDOR VERSUS PARTNER
A Vendor provides just the functionality that a client
asks for……
A Partner provides, the functionality and business
insight that the client asks for, and as a thought leader,
provide functionality and business insight on what the
client is going to need in the future…..

7. OBJECTIVE
BUSINESS VALUE

8. SESSION OBJECTIVE:
 Provide insight on the business value gap fill the application should be providing.
 Provide analysis points to benchmark against your current usage of the application.
 Provide insight on key areas other application users, have identified areas to improve business value.
 Provide insight on the Value increment on future features and functions we will deliver in the next 18
months.

9. DEFINE THE VALUE GAP ASSESSMENT
QUANTIFY VS. QUALITY

10. DEFINE VALUE ASSESSMENT: QUANTITY VS. QUALITY
 Quantity: A value which a specific Return On Investment $$ can be assigned/identified.
 Managing Trade Spending, you never “give money back”, you redeploy the spending. Trade Spend Efficiency.
 Quality: A value which a specific Return on Investment $$ cannot be assigned/identified.
 Business process improvement Managing Trade Spending, provides a process efficiency, so you can identify
opportunities as defined in point 1)

11. VALUE GAP ASSESSMENT
BUSINESS VALUE: PLANS AND PROMOTIONS

12. VALUE GAP ASSESSMENT DETAILS: PROMOTION PLANNING
 Sales & Revenue Lift: Net Sales increase
 Multi Hierarchy Level: Planning , Deployment, Analysis
 Indirect to direct spending management
 S&OP: Assigning a Sales Objective, to align to top down plan.
 S&OP: Assigning a Budget Objective, to align to P&L and top down plan.
 Recommendations
 Take Advantage of how the application can plan at multiple levels: reduce data input by planning by Exception,
Deploy Corp plans at channel levels, analyze to drill down to root cause
 Loading a sales objective to identify gaps in the plan, prior to the gaps occurring, accountability and good data entry.
 Loading a Budget target as a RPC, % of List, Lump sum, prevents over spend and maintains profit margin.
 Compare Indirect Spend: Indirect Spend to the Direct ship Accrual
 Compare Indirect Forecast: Indirect shop forecast to the direct ship forecast

13. WHAT’S THE VALUE GAP FILL OF RECOMMENDATIONS?
 Take Advantage of how the application can plan at multiple levels: reduce data input by planning by
Exception, Deploy Corp plans at channel levels, analyze to drill down to root cause
 Identify gaps and opportunities faster for trade efficiency.
 Loading a sales objective to identify gaps in the plan, prior to the gaps occurring, accountability and good
data entry.
 Identify gaps to plan, and customer manager accountability on the gap customer.
 Loading a Budget target as a RPC, % of List, Lump sum, prevents over spend and maintains profit margin.
 Compensate brokers and account managers on contribution (bottom line) not gross revenue (bottom line)
 Compare Indirect Spend: Indirect Spend to the Direct ship Accrual
 Accrual Accuracy
 Compare Indirect Forecast: Indirect shop forecast to the direct ship forecast
 Forecast Accuracy: Demand Planning, Sales Planning Gaps and Opportunities,

14. VALUE GAP IMPACT TO NET SALES
 By fully utilizing these capabilities, our clients have seen on average 1% increase to net sales YOY

15. VALUE GAP ASSESSMENT
BUSINESS VALUE: ACCRUAL PROCESS

16. VALUE GAP ASSESSMENT DETAILS: ACCRUAL PROCESS
 Cost Reduction: Net Sales increase
 Accrual entry from TPM: Spending Due and Budget LE comparative.
 In order to set aside or “accrue” for committed spending. An amount has to be determined, typically this
number comes from the sales organization, and represents the second biggest line on the P&L. Clients
utilizing TPM typically see an accuracy of +/- 1% of actual versus accrual.
 Recommendations:
 Create a Sales and Spend Forecast Accuracy Metric.
 Insure all promotional activity is captured in the application
 Changes to committed/closed promotions should be viewed as a financial transaction. Priority should be placed on
gathering the most accurate data possible.
 Deploy total P&L trade accrual to drive sales.

17. WHAT’S THE VALUE GAP FILL OF RECOMMENDATIONS?
 Create a Sales and Spend Forecast Accuracy Metric.
 Monthly analysis: Metric Target +/-5%
 Insure all promotional activity is captured in the application.
 If the spending is not all in the plan. The Plan is an illusion
 Changes to committed/closed promotions should be viewed as a financial transaction. Priority should be
placed on gathering the most accurate data possible.
 Unplanned Spending is not showing a true rate of return, and will impact the plan, if an adjustment is needed I
later on. I spend “X.XX” I get “X.XX” in sales
 All spending is deployed to drive revenue. No need to hold money back for a rainy day.

18. VALUE GAP IMPACT TO NET SALES
 By fully utilizing these capabilities, our clients have seen on average 0.5% increase to net sales YOY

19. VALUE GAP ASSESSMENT DETAILS: SETTLEMENT PROCESS
 Cost Reduction: Net Sales increase
 Settlement processing is streamlined providing root cause analysis to identify invalids and obtain
repayment.
 Improved settlement work-flow with application support around deduction reconciliation Contractual
agree upon promotion activity and proof of performance
 Recommendations:
 Gather the most accurate data possible.
 Insure that promotions match customer deal sheets prior to placing them in committed status.
 Insure that contracts (deal sheets) get attached to promotions when the status is advanced to committed. It’s best
practice to have evidence supporting the promotion, the trade accrual and to have documentation to assist in the
deduction clearing process

20. WHAT’S THE VALUE GAP FILL OF RECOMMENDATIONS?
 Gather the most accurate data possible.
 Promotion Entry data aligning to retailer deal details.
 Insure that promotions match customer deal sheets prior to placing them in committed status.
 Settlement reconciliation validates to attached deal sheets.
 Insure that contracts (deal sheets) get attached to promotions when the status is advanced to committed.
It’s best practice to have evidence supporting the promotion, the trade accrual and to have documentation
to assist in the deduction clearing process.
 Audit Trail for deal/deduction authentication and liability

21. THE BIG PICTURE
THE OVERALL VALUE GAP IMPACT

22. VALUE GAP IMPACT OVERALL TO NET SALES
 By fully utilizing these capabilities of value gap fill, our clients have seen on average 2% to 3% increase
to net sales YOY

23. INCREMENTAL VALUE IN PRODUCT ROADMAP
FEATURES & FUNCTIONS TO BE RELEASED IN THE PRODUCT ROADMAP.

24. WHAT’S THE VALUE GAP FILL OF RECOMMENDATIONS?
 Lift Management Tables and integration
 TPO SSO integration to TPM
 Waterfall Net Unit Cost Analytics
 Category Metrics analytics

25. INCREMENTAL VALUE IN PRODUCT ROADMAP
 Lift Management Tables and integration to predictive analytics.
 Forecast and Spend Accuracy with predicted base and incremental volume
 TPO SSO integration to TPM
 TPO Predictive Modeling seamlessly integrated to TPM
 Waterfall Net Unit Cost Analytics
 Net Unit cost waterfall analysis
 Category Metric analytics
 Category data metrics into reporting cube
 Retailer Multi Calendar
 Collaborative Retailer Planning: Sales and Marketing

26. INCREMENTAL VALUE IMPACT TO NET SALES
 By fully utilizing these capabilities, our expectation is that clients should on average and Incremental
value of 1% to 3% increase in net sales YOY

27. BENCHMARK FOR NEXT CONFERENCE
VALUE GAP FILL SUCCESS

28. BENCHMARK AND APPLY WHAT IS LEARNED
 Benchmark a measurable comparative such as current net revenue.
 Implement one or all of what the points we discussed.
 Share your results in next years User Conference Survey
 Your company could will improve, and you could win.

29. NOW FOR SOME FUN STUFF
THIS YEARS SURVEY WINNER

31. Industry Highlights
Vendor Panoramas
- Retail Execution
- Trade Promotion
Management