Effective Trade Promotion Management (TPM) has become more crucial than ever. Yet, according to the 2025 POI State of the Industry Report, a mere 27% of companies express satisfaction with their trade promotion management capabilities. With trade spend representing the second-largest expense for most CPG companies, ensuring you have the right trade spend management software in place is vital.
The shift from manual spreadsheets and legacy systems to advanced Trade Promotion Management software isn't just an upgrade—it's a strategic necessity. While implementing a new TPM solution might seem daunting, understanding the key considerations and following a structured approach can make the transition smooth and successful.
Budget establishment and allocation
Account-level planning capabilities
Automated workflows for promotion approval
Advanced cloning features for efficient plan creation
Automated settlement processes
Shortened AR aging
Reliable audit trails
Quick deduction validation tools
A full suite of operational reports covering Sales, Finance, Executives and Forecasting
Real-time operational reporting
Custom KPI tracking
Post-event analysis capabilities
Side-by-Side Scenario Planning
Robust Guardrails
Gap Closure
The power and architecture to run the models
AI/ML models for base and uplift
Consumption to Shipment phasing
Interactive capabilities for user adjustment
Snapshot capabilities
Has or is developing AI helpers
Let the machines do the non-value added work
Configurability: Choose a platform that offers high configurability to minimize costly customizations
Security: Ensure robust cybersecurity measures are in place - SOC-2 compliance is a must
User Experience: Focus on solutions that reduce user burden and promote efficiency
Support: Look for vendors with strong CPG industry knowledge and responsive support teams
Before implementing Trade Spend Management solutions, ensure:
Stakeholder alignment across IT, Finance, Sales, and Operations
Clear budget parameters and funding sources
Clean, organized data infrastructure
Your Trade Promotion Management software requires:
Account hierarchies and mapping
Product structure and relationships
Historical pricing data
Minimum two years of sales data (sell-in, sell-through, and sell-out)
Market Research
Review Gartner Market Guide
Review POI Vendor Panorama
Examine software review sites
Connect with industry peers
Evaluate vendor track records
RFP Development
Define clear business objectives
Document departmental requirements
Set realistic timelines
Include technical specifications
Promotion Effectiveness: With CPG companies spending 10-20% of gross sales on trade promotions, even minor improvements yield significant returns
Process Efficiency: Automated workflows reduce manual effort and human error
Deduction Management: Automated systems prevent invalid deductions and reduce accrual liability
Forecast Accuracy: System should be driven from accurate base and lift models and provide advanced forecast capability.
Centralized promotion planning
Improved stakeholder collaboration
Enhanced forecast accuracy
Real-time performance tracking
Regular updates on implementation progress
Clear articulation of benefits
Transparent discussion of challenges
Comprehensive standard operating procedures
Role-specific training modules
Ongoing support resources
Start with minimum viable product (MVP)
Gather user feedback
Iterate and improve based on real usage
Webinar - preparing for successful implementations
Implementing Trade Promotion Management software represents a significant investment in your organization's future. While the process requires careful planning and execution, the benefits of improved efficiency, better spend management, and data-driven decision-making make it an essential step for modern CPG companies.
Success in Trade Promotion Management software implementation comes from choosing the right partner, maintaining clear communication, and following a structured approach to change management. By focusing on these key areas, organizations can ensure a smooth transition and maximize their return on investment.
Ready to transform your trade promotion management processes? Contact us to learn how our TPM solutions can help optimize your trade spend and drive better results.