Cloud Trade Promotion Management

NSP's Cloud Trade Promotion Management is an application designed for planning and optimizing Consumer Packaged Goods (CPG) promotions. Built on the SAP Business Technology Platform, Cloud Trade Promotion Management offers comprehensive functionalities to manage trade promotions from planning and execution to reporting and settlement.

Table of contents

Cloud Trade Promotion Management

Cloud Trade Promotion Management is our solution, based on SAP Business Technology Platform, uses microservices to support planning and optimizing trade promotions in the Consumer Goods sector. It calculates Baseline, Uplift, and ROI for both pre- and post-evaluation of promotions. CloudTPM integrates with SAP S/4 HANA, supporting the continuation of planned promotions in the OTC process. CloudTPM is set of microservices apps dedicated to address your local needs in collaboration with global sap system.

Image presents launchpad - control center of CloudTPM. There are 7 square tiles for features: Teritory, Promotions, Marketing Calendar, Customer Invoice, Fund, Fund Plan, Overview

Business benefits

Territory Management

Key Account Managers can assign sales reps to specific regions to improve accountability and performance.

Key Account Managers can assign sales reps to specific regions to improve accountability and performance.

Fund Management

Track and use available funds more effectively to ensure optimal spending.

Track and use available funds more effectively to ensure optimal spending.

Promotion Management

Plan and run promotions effectively to increase sales and revenue while using CloudTPM.

Plan and run promotions effectively to increase sales and revenue while using CloudTPM.

Approval Workflow

An efficient approval workflow in CloudTPM ensures timely processing of requests, maintaining compliance with company policies and budgets.

An efficient approval workflow in CloudTPM ensures timely processing of requests, maintaining compliance with company policies and budgets.

Customer Invoice Approval

Verify invoices and costs submitted by customers through workflows to prevent errors and discrepancies.

Verify invoices and costs submitted by customers through workflows to prevent errors and discrepancies.

Promotion Cost Optimization

Use KPIs like ROI and Promotion Cost Efficiency to make your promotional activities more cost-effective.

Use KPIs like ROI and Promotion Cost Efficiency to make your promotional activities more cost-effective.

Integration with S/4 HANA

Automatic synchronization of data such as prices, product hierarchy, and customer hierarchy with the S/4 HANA system.

Automatic synchronization of data such as prices, product hierarchy, and customer hierarchy with the S/4 HANA system.

AI in Cloud TPM

AI enables precise simulation and analysis of promotional scenarios, optimizing strategies and maximizing sales impact with data-driven decisions.

AI enables precise simulation and analysis of promotional scenarios, optimizing strategies and maximizing sales impact with data-driven decisions.

Business Process

/01

Territory Management
Action: User selects sales territories.
Description: In the application, the user manages territories by selecting sales areas and assigning them to specific teams.

/02

Fund Plan Management
Action: Create and maintain fund plans.
Description: The user defines fund plans, including the validity period, currency, and shared attributes, and then organizes funds into logical units.

/03

Fund Management
Action: Set and manage fund budgets.
Description: The user creates and maintains funds with defined budgets, tracks fund usage, adjusts allocations, and settles expenditures after promotions.

/04

Promotion Management
Action: Plan and execute promotions.
Description: The user plans promotions, secures approvals, executes promotional tactics, and monitors performance to make necessary adjustments.

/05

Trade Spend/Bucket Type
Action: Plan and track trade spends.
Description: The user defines trade investments, assigns trade spends to promotions, and continuously monitors effectiveness to make adjustments.

/06

Approval Workflow
Action: Request and process approvals.
Description: The user triggers the approval process, approvers review proposals, and all decisions are documented for compliance.

/07

Condition Contract
Action: Draft and manage contracts.
Description: The user creates condition contracts outlining promotional terms, monitors compliance, and updates contracts based on performance reviews.

/08

Customer Invoice Management
Action: Handle customer invoices.
Description: Customers submit invoices for promotional reimbursements, which are then validated, processed, and settled through credit memos or other methods.

/09

Approval Workflow (Customer Invoices)
Action: Review and approve customer Invoices.
Description: Customer Invoices are submitted for approval, reviewed for validity and financial impact, and all decisions are documented.

/10

Credit Memo
Action: Issue and reconcile credit memos.
Description: Credit memos are issued based on validated customer Invoices, financial records are updated, and issued credit memos are regularly reconciled with budgets.

Promotion planning

We improved promotion planning by clearly defining goals and focusing on the right markets, which helps us measure success accurately. This careful planning also cuts costs by identifying potential problems early and using our resources efficiently.

Image presents launchpad - control center of CloudTPM. There are 7 square tiles for features: Teritory, Promotions, Marketing Calendar, Customer Invoice, Fund, Fund Plan, Overview
Territory

The application enables the management of areas of responsibility for Key Account Managers (KAM). When creating a territory, we define the client and product groups within which the KAM will manage promotions.

The application enables the management of areas of responsibility for Key Account Managers (KAM). When creating a territory, we define the client and product groups within which the KAM will manage promotions.

Promotions

Plan a promotion for the client, the selected product group, and the selected time period. Choose the type of promotion, and and set the planned sales volume. The promotion will automatically propose the fund to cover its costs. After acceptance, the promotion is released for execution.

Plan a promotion for the client, the selected product group, and the selected time period. Choose the type of promotion, and set the planned sales volume. The promotion will automatically propose the fund to cover its costs. After acceptance, the promotion is released for execution.

Funds

Plan the budget for the client and product category within a given date range. The fund will automatically be determined for the promotion. This will allow for real-time budget control and its usage during the promotion execution.

Plan the budget for the client and product category within a given date range. The fund will automatically be determined for the promotion. This will allow for real-time budget control and its usage during the promotion execution.ns, regardless of sales volume

Promotion Types

Annual promotion

Provides a discount on the entire assortment over the course of a year.

Rebate promotion

Discount or Retrospective Rebate offers a partial refund after purchasing specific products or reaching a set spending threshold.

Scalable Rebate Promotion

Provides an increasing percentage of cash back based on the size or value of the purchase.

Free Goods Promotion

Adds free products to the order upon meeting specific purchase conditions.

Gratis Promotion

Includes free samples or small products with every purchase, regardless of its value.

Promotion pre-evaluation

The system presents planned promotion sales, base sales, and promotional sales (uplift). It respects different methods of calculating the final price (cascade, linear) according to the pricing procedure in the SAP S/4 HANA system. During promotion planning, the Key Account Manager (KAM) has access to the following:

Image presents launchpad - control center of CloudTPM. There are 7 square tiles for features: Teritory, Promotions, Marketing Calendar, Customer Invoice, Fund, Fund Plan, Overview

Prices:

List price
Base price without considering promotional actions
Invoice priceIncludes all discounts visible on the invoice
Final price
Aimed at increasing sales volume over alonger period

Margins:

Standard margin
Based on regular selling price from supplier to retailer
Promotional marginBased on discounted selling price during promotions
Trade margin
Based on the difference between purchase price and retail price

Promotion post-evaluation

Promotion Raporting

In the Cloud Trade Promotion application, it is possible to verify the effectiveness of promotions based on various indicators and KPIs:

The image shows two people dressed in winter sports gear, including helmets and goggles, against a snowy mountainous backdrop. One person is raising their hand holding a red object, possibly a phone. The text on the image reads, "UNVEILING OUR NEW ARRIVALS" and "Style Spotlight" with a button below labeled "GET NOW." The scene suggests a focus on new winter sportswear arrivals.
Promotion ROI
Promotional sales increase
Base/Current/Last year's sales
Comparison of different promotional plans
Planned sales volume in terms of quantity and value

The system also automatically calculates ROI for the planned promotion and displaying cost of goods sold COGS.

The image shows two people dressed in winter sports gear, including helmets and goggles, against a snowy mountainous backdrop. One person is raising their hand holding a red object, possibly a phone. The text on the image reads, "UNVEILING OUR NEW ARRIVALS" and "Style Spotlight" with a button below labeled "GET NOW." The scene suggests a focus on new winter sportswear arrivals.

Promotion settlement

The goal was to simplify the collection and validation of promotional data to ensure accurate financial reconciliation and efficient handling of payments or rebates. By streamlining these processes, the aim was to enhance cost management and provide clearer insights for planning future promotions.

Retrospective discounts

Invoice from the customer
Settled based on the customer invoice registered in the system and verified against reserved amounts in the OTC process.
Credit Memo
Settled directly based on the sales volume in the Order to Cash process
Discounts
Settled directly on the invoice
Image shows multiple diagrams based on promotion raporting data

Integration scenarios

Cloud TPM integrates with SAP Commerce for managing promotions across B2B and B2C channels, and with SAP Perfect Store in SAP C4C for monitoring and optimizing promotional activities during store visits. More information provided below.

Perfect Store in SAP C4C
SAP Commerce
Integration with Perfect Store in SAP C4C

Promotions created in Cloud TPM are transferred to the SAP C4C system. Based on this, the sales representative verifies during the store visit whether the promotional agreements are being properly implemented.

Through the definition of engagement points, surveys, and appropriate key performance indicators (KPIs), the employee conducting the visit can quickly assess the condition of the facility (including ongoing promotions) and take appropriate actions if necessary.

Integration with SAP Commerce

Within the Cloud TPM application, it is also possible to create promotions in B2B and B2C channels for the SAP Commerce online store. This allows us to manage promotions across all channels within the organization.

The ability to track the implementation of promotions and their budgets in the Cloud TPM application. Utilizing the planning and reporting of promotions in the Cloud TPM application for online store promotions.

AI Features

At NSP, we are committed to staying at the forefront of AI technology. Integrating AI is the next step in enhancing our CloudTPM application. Here are the details of our current AI development initiatives.

Development plans with AI

Objective: Use AI to simulate promotions with different sizes and mechanisms.

(coming soon)

/01

AI Integration
Implement AI algorithms to simulate various promotional scenarios
Analyze the size of promotions, promotional mechanisms, and their impact on sales
Run simulations of promotions with different parameters
Assess the effectiveness of promotions based on Baseline, Uplift, and ROI metrics

Key Functions

Save and load different interface configurations.
Set and manage manage filter options.
Easily switch between saved configurations.

120+ brands trusted us

UFA Ltd.

B2B Transformation in 12 Weeks. Tailored SAP Commerce with seamless integration.

Coca-Cola Hellenic Botteling Company

Fast-track Trade Management. Standard SAP functionalities in 25 weeks.

Porsche

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Wella

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Pfleiderer

SAP Commerce Implementation and Integration with SAP ERP for B2B Online Store.

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Unilever

SAP CRM TPM Prototype Implementation.

Continental

SAP CRM System Service Contract and Usage Base Billing Implementation.

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Nestlé

SAP CRM TPM Implementation
Global Upgrade.

P&G

SAP CRM TPM Implementation. Comprehensive SAP ECC integration and system optimization.

Your Queries, Our Responses

Frequently
asked questions

In what business areas can NSP support us?

Retail execution management

Create a consistently positive customer experience in your store

Promotion management

Increase revenue and market share - optimize the utilization of tools, strategies, and resources to promote a product

Promotion optimization

Automate and streamline the planning, evaluation, and execution

Pricing strategies

Determine and implement the most effective pricing strategy

Field service management

Digitalize field service and optimize operations

Return and complaint management

Minimize costs and understand customer needs

What technologies are in your portfolio?
  • SAP Commerce Cloud (B2B, B2C)
  • SAP Sales / Service Cloud
  • SAP Marketing
  • SAP Business Technology Platform (BTP) Development
  • SAP Business Process Automation
  • SAP S/4Hana
  • SAP ERP
  • SAP CRM
What is the delivery model and what benefits does it offer?

The delivery model involves 4 key points, it is focused on effective communication, continuous improvement, and clear roles and responsibilities.

  • Team Preparation – named and fixed resources dedicated to the project
  • Knowledge Transfer & Alignment – onboarding, getting to know each other, common calendar, common knowledge
  • Service Delivery – SLA, daily standups routine, JIRA ticketing, priorities
  • Retrospective – every 3 weeks joint improvement session
Can I work with you if I’m not a big brand?

Many of SAP products are targeted to medium and large companies, however we do not restrict ourselves with company size and we always treat seriously and professionally any cooperation proposals.

How can I get an estimation of service implementation?

Most projects are estimated individually. Please contact us to request an estimate for one of our ready-to-go packages, or to schedule an assessment phase. The assessment phase includes a workshop to evaluate the development stage and define the project scope, followed by planning sessions for time and cost estimation, and ends with a solution presentation workshop.

How the implementation process looks like ?

Assessment Phase

  • Workshop – to assess development stage
  • Scope Definition
  • Time estimation
  • Cost estimation
  • Solution presentation workshops

Delivery

  • Introduce teams and establish communication channels
  • Discuss project goals, requirements, and timelines
  • Requirements Development

Testing

  • Prepare Test scenarios and Test Cases
  • User Acceptance Tests

Go-Live

  • Move solution from development to other tenants in the landscape
  • Support during deployment to Production

Post-Go-Live

  • Prepare and handover documentation
  • Optional post-go-live support as an additional service
Can I request a proof of concept?

Yes, to request a proof of concept of our services simply fill out the contact form available on our website. Once you've submitted the form, we will schedule an assessment phase where workshops will be conducted, and the functional requirements of the PoC will be discussed.

How can I contact NSP?
  • Make a call: +48 604 279 798
  • Send an email: contact@nsp.biz.pl
  • Contact via LinkedIn with CEO Bartosz Szumiel

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