Learn how to drive sales and manage the full cycle business process around trade with CPGvision's roadmap for implementing a TPM software solution.
Trade promotion management (TPM) systems are like compasses that guide consumer packaged goods (CPG) companies through the choppy seas of the retail world, providing enhanced visibility, optimized marketing strategies, and improved return on investment (ROI). Despite the immense potential of these solutions, the path to successful implementation can often be difficult.
Recognizing these potential pitfalls is your first step toward a successful implementation. By combining our expert insights and industry experience, we will guide you through the reasons why companies often fail when implementing a TPM system.
What factors lead to Trade Promotion Management process failure?
Here are some possible factors that can contribute to failed TPM implementation:
- Lack of clarity on business goals: If the company does not have a clear understanding of what it hopes to achieve with the TPM system, it may not allocate the necessary resources or tailor the system in a way that effectively addresses its business needs.
- Poor data quality: TPM systems rely on accurate and reliable data to function effectively. If the data being used is incomplete, outdated, or inaccurate, it can lead to incorrect forecasting, suboptimal decision-making, and ineffective promotion planning.
- Resistance to change: Implementing a new system can be a change for employees, and resistance to change is a common issue that can derail implementation efforts. If employees do not buy into the new system or feel that it will make their jobs less productive, they may not fully adopt it, reducing its effectiveness.
- Inadequate training and support: If employees are not properly trained on how to use the trade promotion management system or do not receive adequate support when they encounter issues, they may not be able to fully utilize the system's capabilities.
- Lack of integration: Trade promotion management software needs to be integrated with other business systems, such as sales, accounting, and marketing, to be effective. If the system is not integrated or is poorly integrated, it may not provide a comprehensive view of promotion performance, leading to suboptimal decision-making.
- Over-reliance on technology: While TPM systems can be powerful tools, they are not a panacea for all promotion management issues. Companies that rely too heavily on technology without also developing effective business processes and strategies may not see the full benefits of the system. Skillset among personnel using the system must be developed in parallel as well.
Overall, successful and effective trade promotion management requires careful planning, clear business goals, data quality, employee buy-in, training and support, system integration, and a balanced approach that incorporates both technology and effective business processes.
Our proven implementation methodology for Trade Promotion Management (TPM)
Here at CPGvision, we have developed an implementation methodology that takes all of this into account and ensures the successful implementation of our solutions.
The key parts of our successful methodology are:
- People. We start by assigning an implementation team with many years of experience implementing TPM solutions for CPG companies. This team will learn about your company, its goals, existing TPM systems, and other internal systems. You’ll also learn how other companies have succeeded in implementing TPM solutions.
- Implementation plan. We’ve developed an implementation guide that is tailored to your implementation. Tasks, milestones, and resources are reflected in the implementation plan, and timely meetings are conducted to ensure the project stays on track.
- Executive orientation session. It’s essential that top management and their direct reports understand the goals and benefits of implementing a new system. Our implementation lead, along with your project lead, will conduct an orientation session to present an overview of the new TPM solution, the implementation plan, the resources required, and the goals and benefits your company expects to achieve.
- Integration with internal systems. Integrating with your business system is part of the implementation plan. We’ll determine which internal systems house the data to support the TPM system. We’ve developed a flexible interface that interacts with most ERP and CRM applications, i.e., SAP, Oracle, NetSuite, SalesForce, and a list of others.
- Training. After the TPM system has been populated with your trade promotion activities, events, workflows, and business rules, a demonstration environment will be created so that user training can be conducted with your data and promotions. Sessions will be held for your end user. It's key that you assign an individual who will conduct end-user training for new users or answer end-user questions.
- Support. After the system has been implemented and gone live, our customer support team will be available to resolve issues and questions.
Bringing your trade promotion process into the 21st century with our advanced solutions is an important step in ensuring business success. By employing the right TPM software, you are better positioned to meet the challenges of trade promotion management and craft a distinct advantage in the ever-competitive world of the consumer goods industry.
Find out how CPGvision has implemented its TPM solutions at many CPG companies to address these shortcomings. Get in touch with our team of experts and let us help you avoid failed TPM implementation.