how to save money on your trade projects

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Orange County Convention CenterOrlando, Florida | May 15-18, 2011

How to save money on trade projects in 2011by using SAP Trade Promotion Management

David Voss

SAP America


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Real Experience. Real Advantage.

[ Learning Points

How to save on your trade projects in 2011:

SAPs Trade Promotion Management overview

New capabilities available with Enhancement Pack 1

Customer Plans / Agreements

Live Rates

Marketing Calendar

eSOA

Using SAP TPM Proof of Concept Service

Next Steps to plan / move forward

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[ SAP TPM Scenario Process Loop: Overview

1. Headquarter Planning Consensus plan (one number plan) top-

down, bottom-up, middle-out Sales budgeting, volume, revenue,

profitability, spending planning

Deal creation products, customers,timing, spending rules

2. Field Account Planning Pre-analysis of prior events

Event planning: Volume and spendingforecasts

Sales planning: Total volume salesforecasting

3. Sell-In and Negotiation Fact-based proposal generation Promotion-driven demand planning

integrated to supply chain planning Flexible contract management

4. Retail Execution,Validation, and Settlement Pricing conditions connected to order

entry resulting in accurate invoicing

Ability to capture in-store observations forsales rep execution

All data sent upstream for analysis

5. Pre and Post Evaluationand Analysis Key performance indicator

reporting

Integration from syndicated dataproviders

Plan vs. actual trackingof funds and volume

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[ Integrated Trade Processes

4

HQ

Planning

&Budget-

ing

HQ

Planning

&Budget-

ing

Account

Mgt

Account

Mgt

Evaluation &Analysis

Evaluation &Analysis

Claims

Mgt

Claims

Mgt

Funds

Mgt

Funds

Mgt

Supply ChainERP

DisputeManagement


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[ Learning Points





Live Rates

Marketing Calendar

eSOA



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[

Solution

Richness

SAP 3.0SDP

SAP CRM5.0

SAP CRM4.0

Enterprise Suite

TPM Solution

SAP CRM 5.1/5.2

SAP CRM 2007

Best of Breed

TPM Solution

2002 2003 2004 2005 2006 2007 2008 2009 2010

SAP TPM over the years

Time

TFM, TCM

SAP CRM 7.0Stable core

SAP CRM 7.0 Ehp1

Web UI

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[

Account & Trade Promotion ManagementImprove spend visibility and control while streamlining trade promotionmanagement processes for end-users

Funds Management enhancements increase flexibility and improvevisibility and control over trade spend

Trade Promotion Management enhancements streamline userinteraction and improve productivity

Trade Claims Management enables timely and accurate claimssettlement and cost assignments to trade spend activity

Benefits

Increase visibility andcontrol, ensure timelyand accurate settlementand improve end-userproductivity

SAP Account & Trade Promotion Management

Enhancements

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[ Off Invoice EnhancementsTrade Promotion Management EnhancementsEffective / Expiration Date Enhancements

Repeat the same trade spend multiple times as long as there is no overlap in dates

Define effective dates at the Product level.

Check to prevent a retroactive off-invoice trade spend (based on condition type beingPR)

Provide the user ability to add a retroactive off-invoice condition based on Sales Area

If it is allowed to add a OI condition retroactively, then when a user adds a Trade Spend with aStart Date in the past, then a warning message is presented to the user. The user can save theTP.

If not allowed to add the OI condition retroactively, then the user will be presented with anerror message and cannot save the Trade Promotion

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[ Spend Value OverviewTrade Promotion Management Enhancements

Single assignment block to enterusual spend values for a tradepromotion

Useful for promotions includingmany products with varying spendvalues

User can change: Spend values per product / category

(creates exceptions)

Dates per spend value per product /category (creates exceptions)

Take rate and off-invoice cap (if

applicable) List price and retail price

Volume (Product based -synchronized with the planninglayout)

Download to Microsoft Excel

Spend value and volume integration withthe planning layout

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[ Spend Value OverviewTrade Promotion Management Enhancements

Two options for theassignment block: Product based (flat table with one row

per product and trade spendrepresented as columns)

Trade spend based (one row per tradespend with drill down to product andthe spend value in the columns)

Trade Spend Based

Product Based

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[ Mass Approval enhancementsTrade Promotion Management Enhancements

Ability to mass approve as a background process Customize which Status (user or system) that Mass Approval relates to

Total row in results list

A table will stipulate which status to which the Mass Approval button changes the statusof the trade promotions. The table with have the following fields:

Application (e.g. MKT)

Object Type (e.g. TPM)

Sales Org.

Distribution Channel

Division

Status Profile

User Status

System Status

Maintain either a User Status or a System Status by Sales Org, Distribution Channel orDivision

The default customizing will be that for all sales orgs, dist channel,

divisions, the system status of Approved will be set.

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[TaxationTrade Claims Management

Enable taxation of invoiceclaims and payments fromcustomersand vendors, deduction claims fromcustomers and MDF claimsfrompartners

Trade promotion planning, fund management, accrual and claimvalidation will always be based on net amount (tax free)

Settlement will calculated with and without taxes

Taxation procedure and determination will reside in ERP

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[ Settlement to InvoiceTrade Claims Management

Settlement to invoice replicates CRM billing document to SDbilling document

Enable the localization made to SD billing for TPM related billing.

Use text and account determination defined is SD

Use output localization Unique and complete billing document numbering

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[ Enhanced RebatesTrade Claims Management

Funds Management enhancements:

Upload detailed enhanced rebates statistics from ERP SD [already provided]

Create fund usages for detailed rebates statistics, rather than aggregating thestatistics up to the CRM planning level

Build accruals on detailed statistics, as account determination is on account

and product level. In case all the Products in the Category do not map tothe same G/L.

Claims Management enhancements:

Receive invoice claims or deductions from individual sold-tos, subordinatedto planning customer of the promotion. Validate these claims against

amounts accrued by individual account Pro-rate total claims payment amount to product level, based on amounts

accrued on sold-to and product level

Update ERP profitability accounting from settlement line items

on sold-to and product level

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[ Duplicate Claim Identification & DiagnosisTrade Claims Management

Duplicate Checking ProcessTwo duplicate checking process with be available

Initial Check procedure - Until a TP has been applied to the Claim

Complete Check procedure After TP has been associated

Two new fields added to the Claim AB

Ignore Duplicate: Check box use by a claim analyst to remove the warning /error message for appearing each time the document is open.

Explanation: Will use by a claim analyst to explain why this claim is valideven though it is considered as a duplicate.

A new assignment block (AB) will be added to the Claim UI to display the list

of all duplicate claims. List of duplicates is persisted in the database

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[ Learning Points





Live Rates Marketing Calendar

eSOA



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[Trade Promotion Agreement / Customer Plan

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[ Creating Promotions within the Agreement

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[ Embedded report within Agreement

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[ Agreement enhancementsTrade Promotion Management Enhancements Trade Promotion creation from Agreement application

Trade Promotions can be created in the background as a job or in real-time

Administrator can customize which attributes get passed to the promotion oncreation from Agreement.

In customization table, it will be possible to set both attributes of the TradePromotion and also to specify which child data will be copied (for ex: attachments)

In addition, a BADI will be provided to enable customers to have additional flexibilityon the TP create process

Enhance Calendar view of the Agreement

From theAgreementsadvanced search page if the user clicks Switch ToCalendar button, the user is transferred to the Agreement structure view.

In the Agreement structure view in the calendar, the user can visualize both the

Agreement and the child Trade promotions BADI to cascade status from Agreement to Trade Promotion

The customer implementation should be able to use a BAdI to cascade

status changes from the agreement to the trade promotions assigned.

For example, the user changes the status of the agreement to

Released and this should change the status of the assigned promotions to Released. SAP 2011 / 20


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[ Learning Points






eSOA



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[ What are live rates? Lives rates is a pay-for-performance concept that is used to allocate budget for

promotional spending

A live rate can be either a % or $ amount

In its simplest form, a live rate helps create a budget amount with the followingcalculation:

live rate ($ or %) x plan/actual amounts = $budget

If the live is a $ amount, then plan/actual amounts must be based on volume

If the live is a %, then plan/actual amounts must be based ona $ amount

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[ Why use Live Rates? Pay-for-performance is the standard in North America and is a trend in other

areas of the world

Logical allocation of promotional budgets based on live rates

The CRM Fund checkbook is updated regularly to reflect the most accuratebudget based on updated planned/actual amounts

Transparency on how CRM Fund budgets are updated

Dynamic budget gives additional insight on actual performance so companies canadjust trade promotions as needed

Fund

Budget

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[ Live Rates Planning and Execution Processes

Two key processes:Planning

Set up live rates at higher levels in the customer/producthierarchies and distribute down

Can incorporate budgets from an external application

Detailed planning for customer/product category combinationsand time

Execution

Monitor live rates plan

Maintain and update live rates throughout entire lifecycle

Funds Management updates

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[ Live Rates in action: Planning Key drivers of the live ratesplanning include:

Planning Period Sales AreaAccount Hierarchy Product Hierarchy

Access for users based onTerritory Management

Plan live rates based oncustomer and product hierarchies

Designate meaningful levels inthe hierarchies to plan live rates

View live rates from accounthierarchy or product hierarchyperspective

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[ Planning in account hierarchy view

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[ Additional promotional budget

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[ Live Rates in action: Execution Update Funds in CRM

Identify different live ratetypes for different funds basedon fund type in order to buildbudgets for specific purposes

New budget postingtransaction to enable easier

tracking and reporting of liverates budget

Full funds management

capabilities for tradepromotion planning, executionand validation

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[ CRM Fund AFTER Live Rates Posting to FM

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[ Learning Points






eSOA



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[ Integrated Marketing Calendar Definition

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[ Integrated Marketing Calendar

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[

MarketingAnalytics

Segment& ListMnagement

Integrated Marketing CalendarMarketing Planning Calendar

Enhanced marketing planning calendar leverages state of the art UItechnologies to provide new visualization and interactivity forflexible planning through the marketing calendar

Multiple object views users can view campaigns by its types as well asbrands, products and customers

Interactive planning allows users to view dependent marketing activities,marketing project creation, rescheduling of planning activities all directlyfrom the calendar

Split Calendar provides a second Gantt chart to plan and managerelated marketing projects

Integrated campaign template users can lookup and drag and drop

campaigns directly on to the calendar

User personalization allows users to define status color codes, and theobject bar and tool tip descriptions

Benefits

Improve alignment andvisibility into allmarketing activities

Increase collaborationwithin marketing teams

in planning marketingcampaigns and programs

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[ Integrated Marketing Calendar

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[ Learning Points






eSOA



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[ eSOA example with TPM

Scenario to Create Trade Promotions from a spreadsheet is:

Check that the promotions do not exist in CRM

Open the spreadsheet and review new promotions

Add personal calculation

Compare promotions and skip one Enter new promotions

Send the promotions to CRM (Create xml document)

Manual load of promotions (shown for demo purposes, this

would be automated) View the promotions in CRM

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[ Example Promotion for Upload via eSOA

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[ eSOA Details to assist with the upload

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[ Upload Process using eSOA

Parameter name Parameter value Comment

Filename with payload Enter the path to thexml file using F4

Target Interface name TradePromotionCRMBulkCreateRequest_In

Can create multiplepromotions

NAMESPCE http://sap.com/xi/CRM/Global2

protocol (http or https) http

http destination(optional)User name (backend) Avoids user log on

every time

Password (backend) Avoids user log onevery time

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[ After Upload with eSOA Promotions exist

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[ Learning Points

How to save on your trade projects in 2011: SAPs Trade Promotion Management overview




eSOA



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[

Low investment risk due todefined implementation prices

Implementation services deliveredby SAP Consulting

Fast and high-quality implementation

Lean product: Lean installation and hardware requirements

Predefined packaged scope implementation

Ramp-up of customer resourcesprovided by hands on learning ofSAP TPM solution

SAP TPM POC ServiceProject Benefits

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[

Foundation project which will driveaccelerated timeline for end-to-end project

Rapid deployment

Customer team able to execute tasks such as

installation of software insandbox/development landscape

Pre-project phase starts early

Tactic Impact

How Can We Be Successful? TPM POC Service

Predictable price and timelinePrescriptive scope:preconfiguredand documented in advance

Customer resources are actively engagedensuring continual knowledge transfer during

POC

Knowledge Transfer

Accelerators such project schedule andconfiguration guidesDelivered accelerators

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[

1.HeadquartersplanningTrade fund live accrual

Deals

Baseline models

Fund allocation

Preliminary OutlineTrade Promotion Management Proof of Concept Service

2.Account planningTrade fund checkbookTerritory management

Annual event Planning

Promotion planning

5.Evaluation andanalysis Plan vs. actual

Funds tracking

Marketing calendar

4. Retail execution,

validation, and settlement Invoicing/execution

Accruals

Settlement

Checkbook updates

1

2

34

5

3.Sell-in andnegotiation Status tracking

Promotion guidelines

Marketing calendar Promotion analytics

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[ Proof of Concept Timeline - 6 Weeks

Key Activities: Project Planning Project prep Complete installation of

Sandbox/Developmentenvironment

Confirm Scope

SAP Consulting: Delivery Manager SAP TPM Architect SAP TPM Functional

Lead Basis Middleware Consultant

Client Resources Project Manager Basis TPM Lead CRM Middleware

Key Activities: Complete Middleware Connection and Download Configure SAP CRM TPM standard solution Knowledge Transfer between Consultants and

Customer

SAP Consulting: Delivery Manager

SAP TPM Architect SAP TPM Functional Basis Middleware Consultant CRM Tools WebUI/ABAP Consultant BW/SEM BPS Consultant

Customer Resources: Project Manager Basis TPM Lead Business SMEs CRM Tools/WebUI CRM Middleware BW/SEM BPS

Key Activities: Complete Knowledge

Transfer ofSandbox/Developmentconfiguration

Validate standardconfiguration withBusiness SMEs

SAP Consulting: Delivery Manager SAP TPM Functional BW/SEM BPS

Consultant

Customer Resources: Project Manager Basis

TPM Lead Business SMEs

1 week 4 weeks 1 week

Solution ValidationSolution BuildProject Initiation

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[ ScopeYou can utilize resources from SAP Consulting for accelerated implementation

approach to enable a Proof of Concept TPM capabilities using SAP CRM in as littleas 6 weeks.

ResourcesSAP Consulting 3 full-time resources, 5

part-time resources

Customer 4+ full-time resources

Project timingApproximately 6 weeks

Value received:

Key capabilitiesTrade promotion management

Headcount planningmanagement

Account planning

Sell-in and negotiation

Retail execution, validation

Execution and analysis

Web-based UISAP R/3 integration

Lower project riskShorter time to value

Shorter project durationLower total cost of ownership

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[ Project Roles

SAP Roles

Delivery Manager

TPM Solution Architect

TPM Functional Resource (2)

CRM Tools Web UI/ABAPCRM Basis

SAP NetWeaver BW/SEM resource

Middleware resource

Client Roles

Project manager

TPM functional

SAP NetWeaver BW/SEM resource

SAP ERP sales and distribution,financial accounting, profitability analysis

Basis

Middleware

Tools ABAP, Web UI

Business subject matter experts

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[ Learning Points

How to save on your trade projects in 2011: SAPs Trade Promotion Management overview




eSOA



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[ Resources

Features and Functions: Trade Promotion Managementhttp://www.sap.com/solutions/business-suite/crm/featuresfunctions/tradepromotion/index.epx

Trade Promotion Management: Boost Brand Presence andProfitability with SAP Trade Promotion Management

http://download.sap.com/solutions/business-suite/crm/brochures/download.epd?context=6755C3ABC2B1FBBB1CBC553A64B5C02D85F1B8270CC006BF0

69EB028CFAC323E55E5217DDF5BBA4D8ABAF0A9537950CA7A90033447C83958

SAP: Strategic Value with Trade Promotion Managementhttp://download.sap.com/download.epd?context=1B0033DB5F88EF5A7F94AA5335E212BA83900D6FADE5DD4E97

9E4CC80F554F8B15976EE5D165396397524E5FE1278A961891F64A9C880078

CRM Overview:http://www.sap.com/solutions/business-suite/crm/index.epx

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[ Best Practices

Customer Plans or the Agreement object is the way to linkpromotions together and add value to the selling organizationby putting it all together.

Live Rates may be common in the US, but the trend is movingthis global and SAP has a solution to support. Remember toplan the year, not just the promotions.

The Integrated Marketing Calendar adds value by showing largeamounts of promotions graphically and great drill downcapabilities.

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[ Key Learnings

New functionality in CRM 7.0 Enhp 1 provide the drivers tostart your project or upgrade plans now. General releasecoming in June.

eSOA a term that describes how to upload tradepromotions. This capability is real and plan how to takeadvantage of it.

TPM Proof of Concept Service A proven method to start aproject off with a working solution and real value to theorganization.

The CRM 7.0 Enhancement Pack 1 is worth the wait and addsgreat capabilities to your trade execution solution.

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RealExperience.RealAdvantage.

[

] Thank you for participating.SESSION CODE: 3707

How to save money on your trade projects in 2011 by usingSAP Trade Promotion Management

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how to save money on your trade projects

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