SAP Trade management FP05 – Product Category Planning – New Release


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)

The base logic in planning functions (Roll-up and Roll-in) is:

  1. List price – the list price of the 1st SKU is picked up during promotion roll in from CBP
  2. Baseline Volume – the aggregated volume of all SKUs that make up the product category
  3. 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)
  4. 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

The combination of TekLink’s CPG experience, qualified advisors & commitment to customer satisfaction led Lindt through a large evolution into best business practices and delivered an integrated system complete with KPI’s, targets, conventions and additional advanced functions to move the business forward
Jaimie Bell
Jaimie Bell

Director of Business Solutions

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