Do you know where your trade spend is going when you’re not looking? Is it sneaking out the back door and you have no idea what it’s up to? Well you need to put a stop to that and pronto! One of the biggest challenges for manufacturing organisations is plugging the leaks in their P&L, trade spend is increasing and there is no visibility as to where it is going and how it is performing.
Trade and Revenue Management is not just a process, it’s more than a series of actionable tasks under the heading of best practice. It’s the fundamental framework that interconnects all the many pricing and trade related activities within a manufacturing organisation.
Like trying to fill a bath tub when the plug is one size too small, how can you expect to increase profits while there is trade spend leaking out of your organisation?
The key is connecting the multiple systems and processes within your organisation so that you can see how much trade spend is being spent and where. If you can’t see the data and where it is going, you’ll never find the leak.
Sales teams shouldn’t have to access multiple systems in order to retrieve the information they need on their customers or to update orders. Reducing penalty payments for pricing or other invoice errors is critical, some contracts state that if an error is made on an invoice then the organisation must pay the customer a certain amount.
By connecting all the systems a Sales team uses to upload or amend contracts and invoices, the risk of errors is significantly reduced.
Being able to see and collect the information that you need is the next step towards repairing the leak in your P&L.
Once you can see where your trade spend is going, you can analyse the data to identify inefficient or successful trade activities and take the appropriate action. Organisations will often create deals that rely on the performance of the customer, if there is no visibility of those deals or the performance then the customer could claim back money and there is no way to disprove them.
With better visibility comes better business decisions. It’s that simple. Using accurate, real-time data means that your decisions will be more accurate and better for your organisation.
It will empower CFO’s to do more with less as they reduce revenue leakage, redirect trade spend to the most effective activities and put a stop to ineffective promotions.