Adesso Solutions

Understanding the Trade Management Process

Where To Look For Efficiencies

Second only to the cost of producing the goods it is meant promote, trade spending represents 10 - 15% of the P & L for most consumer goods companies. However, most consumer goods companies admit they do not have adequate resources or a system in place that allows them to effectively plan their trade spending and measure the effectiveness of the expenditures. Applying the principals of production control and analysis to trade spending can identify potential areas of improvement and growth.

Planning Cycle

Targets, rates, and constraints are metrics common to any financial system. At Adesso, we believe utilizing similar analytical resources and approaches result in highly efficient use of limited trade promotion dollars.

Production Cycle

Defined responsibility, tracking, and documentation are key elements of the production process. Together, they are used to measure production performance and efficiency. When these elements are applied to Trade Management, improvements in performance and cycle times are seen along with greater accountability and increased efficiency.

Performance Metrics

"Industry statistics show that invalid claims and deductions cost retail and consumer goods companies more than $1 billion dollars a year." 4 Our research shows on average, a company with $100 million in annual sales will process $225,000 in invalid claims which results in approximately $50,000 in administrative recovery costs. Automating the research, validation, and settlement of deductions, chargeback's and other claims can significantly reduce these amounts.
Analyzing and identifying inefficiencies is routine among manufacturers and crucial to maintaining the bottom line. Trade management spending procedures can also benefit from the same scrutiny and measurements that the production of goods experience. Without measurements and controls, inefficient spending will erode profits.

About Adesso

Adesso Solutions enables Consumer Product Goods (CPG) Manufacturers to efficiently execute and effectively analyze their Account Planning & Forecasting, Trade Promotion spending, Deduction Resolution and Customer Profitability. Adesso's TradeAdvantage is a cost effective Microsoft suite-based, integrated technology that enhances teamwork between corporate and the field sales. Adesso clients include Apple & Eve, Barilla of America, Bumble Bee Foods, Idahoan Fresh Pak, Perfetti Van Melle, Phoenix Brands, Reily Foods, Solo Cup and more.

ADESSO OVERVIEW TRADE PROMOTION MANAGEMENT DEDUCTION RESOLUTION MANAGEMENT UNDERSTANDING THE TRADE MANAGEMENT PROCESS - - - - A DOUBLE EDGED SWORD: COMPLYING WITH SARBANES-OXLEY USING ADESSO TO COMPLY WITH SARBANES-OXLEY - - - - RETURN ON INVESTMENT CALCULATOR		Understanding the Trade Management Process Where To Look For Efficiencies Second only to the cost of producing the goods it is meant promote, trade spending represents 10 - 15% of the P & L for most consumer goods companies. However, most consumer goods companies admit they do not have adequate resources or a system in place that allows them to effectively plan their trade spending and measure the effectiveness of the expenditures. Applying the principals of production control and analysis to trade spending can identify potential areas of improvement and growth. Planning Cycle Targets, rates, and constraints are metrics common to any financial system. At Adesso, we believe utilizing similar analytical resources and approaches result in highly efficient use of limited trade promotion dollars. Production Cycle Defined responsibility, tracking, and documentation are key elements of the production process. Together, they are used to measure production performance and efficiency. When these elements are applied to Trade Management, improvements in performance and cycle times are seen along with greater accountability and increased efficiency. Performance Metrics "Industry statistics show that invalid claims and deductions cost retail and consumer goods companies more than $1 billion dollars a year." 4 Our research shows on average, a company with $100 million in annual sales will process $225,000 in invalid claims which results in approximately $50,000 in administrative recovery costs. Automating the research, validation, and settlement of deductions, chargeback's and other claims can significantly reduce these amounts. Analyzing and identifying inefficiencies is routine among manufacturers and crucial to maintaining the bottom line. Trade management spending procedures can also benefit from the same scrutiny and measurements that the production of goods experience. Without measurements and controls, inefficient spending will erode profits. About Adesso Adesso Solutions enables Consumer Product Goods (CPG) Manufacturers to efficiently execute and effectively analyze their Account Planning & Forecasting, Trade Promotion spending, Deduction Resolution and Customer Profitability. Adesso's TradeAdvantage is a cost effective Microsoft suite-based, integrated technology that enhances teamwork between corporate and the field sales. Adesso clients include Apple & Eve, Barilla of America, Bumble Bee Foods, Idahoan Fresh Pak, Perfetti Van Melle, Phoenix Brands, Reily Foods, Solo Cup and more.