Understanding TPM, TPO, RGM Vendors

When it comes to selecting a Trade Promotion Management and Optimization (TPM + TPO = TPx) or RGM vendor, there are many to choose from. Selecting the right fit is imperative, and when doing so, consumer goods companies should consider both their immediate and long-term needs.

TPM/TPO/RGM - What’s the difference?

The definitions of what is included in TPM, TPO and RGM will vary, with vendors sometimes overlapping in capabilities.  Vendors vary, from very transactional TPM on one end and very customized RGM vendors on the other. In the middle are vendors with full cycle TPM as well as TPO and elements of RGM. 

Let’s explore these:

Transactional TPM only - The Smaller, Newer TPM Vendors
These vendors do elements of TPM with little predictive or prescriptive analytic capabilities. There are many newcomers in this space, and they tend to focus on deduction management as a primary capability. 

Who they are:
Confido
Floret
Glimpse
PromoMash
Vividly

Who they best serve:
These companies best service small and emerging brands, especially startups

Pros of smaller, newer vendors:
They do deduction management very well, which solves an immediate need. Some offer deduction services and provide staff for deduction clearing. Their price tag is typically lower

Cons of smaller, newer vendors:
The integration capabilities are limited, and analytic capabilities are limited to descriptive reports

They may not accommodate more complex go-to-markets, complex promotional structures, or management of terms and promotions in an integrated manner. 

Consumer goods companies typically outgrow the capabilities of these vendors and find themselves starting over after a year or two.

Customized Revenue Growth Management and Consultancies
These companies provide advanced and full suites of RGM capabilities, and are typically “bespoke” or customized. These companies do not offer transactional TPM solutions.

Who they are:
Buynomics
Decision Point
Enterra Solutions
09
XTEL
And all the big consultancies - PwC, McKinsey, BCG etc.

Who they best serve:
Large, tier one consumer goods companies with a dedicated and distinct RGM team, complex businesses, a wealth of data and high levels of internal talent on both the analytic and executional sides.

Pros of Customized RGM Vendors:
The capabilities are highly sophisticated, tailored to an individual business need and driven by highly complex AI modeling capabilities. Ability to incorporate all data sources regardless of type or level of information.

Cons of Customized RGM Vendors:
The price tag is typically very high, software doesn’t integrate with internal systems like ERP and Demand planning.

Hybrid TPM/TPO/RGM solutions
These companies provide full transactional TPM, based on AI models and to varying degrees venture into RGM solutions, although most do not provide the depth and sophistication that the custom RGM providers have. TPO capabilities will vary amongst these vendors, with some offering basic, account-level what-if scenario planning while others offer constraint based and generative TPO at the global and account level. These vendors are typically more mature and thus have advanced the breadth and depth of their capabilities over many years.

Who they are:
BluePlanner by UpClear
CPGvision by PSignite
Exceedra by TeleUS
Visualfabriq

Pros of Hybrid TPM/TPO/RGM solutions
Transactional TPM is more sophisticated, providing for more complex go-to-market and promotional structures. Analytics are more sophisticated and for some vendors built with strong AI capabilities. These vendors are experienced in integrating with ERP and Demand Planning systems as well as external connectors. Some vendors in this class have sophisticated predictive analytics, although few move into prescriptive. Analytics and Insights based on integrated data are a key to obtaining value from these solutions. Some have RGM capabilities such as price elasticity modeling and scenario planning as well as trade promotion optimization capabilities. Evaluating the different vendors based on key criteria is vital.

Cons of Hybrid TPM/TPO/RGM solutions
The price tag on these solutions may be higher than the newer, smaller scaled down providers, although it won’t be as high as the bespoke RGM solutions. These vendors have differing specialties that make the selection process a bit more complex. Geographic strength will vary. Be aware that some of the vendors in this category have patched together capabilities through acquisitions that may not have a smooth workflow, (CPGvision is a unified platform, with all functions operating from one dataset).

Other Options - Platforms that Also Do TPM
arge enterprise platforms that have incorporated elements of trade promotion management into their larger capabilities.

Who they are:
Aforza (Retail Execution)*
Salesforce (CRM)
SAP (ERP)

Pros of “Also Do” platforms:
There may be a reduced integration burden by utilizing the same platform as your ERP, for example. 

Cons of “Also Do” platforms:
Lack of expertise in consumer goods in general, and trade management in particular. Lack of development focus on new TPx and RGM capabilities. Lack of ability to integrate multiple data sources. Lack of advanced analytics, insights and modeling capabilities. These platforms often require a high level of customization and are costly to implement and maintain.

A note on Salesforce: Salesforce is a platform with endless applications built on it, so it is possible to get the best of both worlds here. CPGvision is built on the Salesforce platform, providing the ability to get specialized consumer goods and trade management expertise AND the benefits of a major platform at the same time.

Recommendation:
A full-cycle trade promotion management software is at the core of running a successful CPG company. Managing trade in spreadsheets creates errors and inefficiencies that cannot occur in managing trade spend that represents upwards of 25% of gross sales. Enabling trade promotion management software must be job 1. When selecting, ensure that the company can meet your short term needs as well as provide capabilities you can grow into. And while you might initially spend a little more on a more sophisticated solution, it is likely a better spend in the long-run. Solutions like CPGvision provide that  “grow with you” flexibility are worth considering.

If you already are fully operating in a TPM software that works for you but need additional capabilities, evaluate the bucket of RGM providers, as well as CPGvision, which offers TPO, Insights and advanced forecasting capabilities that integrate with many TPM tools on the market.

A Word of Caution:
Review sites like G2, Software Advice, and Capterra can provide valuable insights, however utilize these sites with caution. They are a good tool in your evaluation toolkit but should not be a substitute for real recommendations and visual proofpoints as well as quantifiable results. Be aware that review sites:

• Are not always up to date
• May provide a vendor list is not comprehensive and often leaves out key vendors
• Prioritize vendors based on quantity of reviews, which can be cultivated and artificially propped up with paid incentives.

What makes CPGvision by PSignite a better option
CPGvision has full cycle trade management that accommodates all your routes to market, including directs, distributors, indirects and all your promotion types including terms, promotions (including complex and BOMs) and marketing events. Integrated calendars

Scenario Planning provided in CPGvision is integrated (promotions, pricing and baseline impacts) and constraint-based, including Global Scenarios for go-to-market wargaming

The CPGvision platform provides holistic and interactive forecast capabilities for consumption and shipments with lagging and snapshot capability, with Instant KPI predictions as you plan

Agentic AI - CPGvision's TPXperts are agents trained in specific platform capabilities by trade management experts that have worked for consumer goods companies doing the same job. These agents provide insights, solve problems, provide in-app help and execute manual functions.

Extensive, out of the box, insights suite

The CPGvision platform is architected for power, performance and security with all capabilities built on one platform, running from the same dataset.

CPGvision offers the highest level of configurability, avoiding customizations that are costly to implement and maintain.

PSignite has the most experienced team in the industry! PSignite, the company behind the CPGvision platform, is stocked with individuals with extensive background in consumer goods, trade analytics, financial trade management as well as implementation and development experience. This includes our own data science team to turn your data into predictive models across the solution.

Are you ready to embark on selecting a vendor for trade management? We highly recommend our Buying Committee Toolkit, enabling your success at every stage:

Ready to transform your trade promotion management processes? Contact us to learn how the CPGvision platform can help optimize your trade spend and free your sales, finance ad planning teams from excess manual labor.