Introduction
SAP Trade Management is an Integrated, holistic Trade Management solution that enables a coordinated business process for field sales to create account-specified plans aimed at maximizing profitability that fully integrates with S&OP, Supply Chain Management, Finance, etc.
With the new Release SAP (FP05)- product category level planning is enabled. This is a big step towards what most customers are looking for provided out-of-the-box.
Currently promotions can only be created on SKU level ( FP04 and below)
Click Here for a System-demo (TekLink system)
With FP05 Creating promotions on category level provides the option to:
- Automatically include future products of a certain category
- Do high level planning
- Reduce data volume in promotions (especially for LTAs with high number of products)
However note that
- CBP Plan is still on SKU level
- Distribution to Products has to be done on plan roll up (from Promotion to CBP Plan)
- List price is picked up for random product during the product Category planning (out of the box content behavior)
New-UI screen from my company’s (TekLink) demo system) – for product-category level promotion-FP05
The base logic in planning functions (Roll-up and Roll-in) is:
- List price – the list price of the 1st SKU is picked up during promotion roll in from CBP
- Baseline Volume – the aggregated volume of all SKUs that make up the product category
- Spend$ – the spend$ from promotion is dis-aggregated based on “base volume ratio” to the SKUs in the CBP plan during roll-up (logic can be altered)
- Uplift Volume – the uplift from promotion is dis-aggregated based on “base volume ratio” of the SKUs in the CBP plan during roll-up (logic can be altered)
By Arvind Bhaskar
