Orange County Convention Center
Orlando, Florida | May 15-18, 2011
How to save money on trade projects in 2011
by using SAP Trade Promotion Management
David Voss
SAP America
]
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 2
[ SAP TPM Scenario Process Loop: Overview
5. Pre and Post Evaluation
and Analysis
Key performance indicator
reporting
Integration from syndicated data
providers
Plan vs. actual tracking
of funds and volume
1. Headquarter Planning
Consensus plan (one number plan) topdown, 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 spending
forecasts
Sales planning: Total volume sales
forecasting
4. Retail Execution,
Validation, and Settlement
Pricing conditions connected to order
entry resulting in accurate invoicing
Ability to capture in-store observations for
sales rep execution
All data sent upstream for analysis
Real Experience. Real Advantage.
3. Sell-In and Negotiation
Fact-based proposal generation
Promotion-driven demand planning
integrated to supply chain planning
Flexible contract management
© SAP 2011 / 3
[ Integrated Trade Processes
Evaluation &
Analysis
Claims
Mgt
Supply Chain
ERP
Dispute
HQ
Planning
&
Budgeting
Management
Account
Mgt
Real Experience. Real Advantage.
Funds
Mgt
4
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 5
[SAP TPM over the years
Solution
Richness
SAP CRM 7.0 Ehp1
Stable core
TFM,TCM
Web UI
“Best of Breed”
TPM Solution
SAP CRM 7.0
SAP CRM 2007
SAP CRM 5.1/5.2
Enterprise Suite
TPM Solution
SAP CRM
5.0
SAP CRM
4.0
SAP 3.0
SDP
2002
2003 2004
Real Experience. Real Advantage.
2005 2006 2007 2008 2009 2010
Time
© SAP 2011 / 6
[
SAP Account & Trade Promotion Management
Enhancements
Account & Trade Promotion Management
Improve spend visibility and control while streamlining trade promotion
management processes for end-users
Funds Management enhancements increase flexibility and improve
visibility and control over trade spend
Benefits
Increase visibility and
control, ensure timely
and accurate settlement
and improve end-user
productivity
Real Experience. Real Advantage.
Trade Promotion Management enhancements streamline user
interaction and improve productivity
Trade Claims Management enables timely and accurate claims
settlement and cost assignments to trade spend activity
© SAP 2011 / 7
Off Invoice Enhancements
[ Trade Promotion Management Enhancements
Effective / 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 being PR)
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 a
Start Date in the past, then a warning message is presented to the user. The user can save the
TP.
If not allowed to add the OI condition retroactively, then the user will be presented with an
error message and cannot save the Trade Promotion
Real Experience. Real Advantage.
© SAP 2011 / 8
Spend Value Overview
[ Trade Promotion Management Enhancements
Single assignment block to enter
usual spend values for a trade
promotion
Spend value and volume integration with
the planning layout
Useful for promotions including
many products with varying spend
values
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 planning
layout)
Download to Microsoft Excel
Real Experience. Real Advantage.
© SAP 2011 / 9
Spend Value Overview
[ Trade Promotion Management Enhancements
Two options for the
assignment block:
Product Based
Product based (flat table with one row
per product and trade spend
represented as columns)
Trade spend based (one row per trade
spend with drill down to product and
the spend value in the columns)
Trade Spend Based
Real Experience. Real Advantage.
© SAP 2011 / 10
Mass Approval enhancements
[ Trade 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 status
of 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 or
Division
The default customizing will be that for all sales orgs, dist channel,
divisions, the system status of ‘Approved’ will be set.
Real Experience. Real Advantage.
© SAP 2011 / 11
Taxation
[ Trade Claims Management
Enable taxation of invoice claims and payments from customers
and vendors, deduction claims from customers and MDF claims
from partners
Trade promotion planning, fund management, accrual and claim
validation will always be based on net amount (tax free)
Settlement will calculated with and without taxes
Taxation procedure and determination will reside in ERP
Real Experience. Real Advantage.
© SAP 2011 / 12
Settlement to Invoice
[ Trade Claims Management
“Settlement to invoice” replicates CRM billing document to SD
billing 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
Real Experience. Real Advantage.
© SAP 2011 / 13
Enhanced Rebates
[ Trade 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 the
statistics 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 to
the same G/L.
Claims Management enhancements:
Receive invoice claims or deductions from individual sold-to’s, subordinated
to 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
Real Experience. Real Advantage.
© SAP 2011 / 14
Duplicate Claim Identification & Diagnosis
[ Trade Claims Management
Duplicate Checking Process
Two 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 valid
even 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
Real Experience. Real Advantage.
© SAP 2011 / 15
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 16
[ Trade Promotion Agreement / Customer Plan
Real Experience. Real Advantage.
© SAP 2011 / 17
[ Creating Promotions within the Agreement
Real Experience. Real Advantage.
© SAP 2011 / 18
[ Embedded report within Agreement
Real Experience. Real Advantage.
© SAP 2011 / 19
Agreement enhancements
[ Trade 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 on
creation from Agreement.
In customization table, it will be possible to set both attributes of the Trade
Promotion 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 flexibility
on the TP create process
Enhance Calendar view of the Agreement
From the Agreements advanced search page if the user clicks “Switch To
Calendar” 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.
Real Experience. Real Advantage.
© SAP 2011 / 20
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 21
[ 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 following
calculation:
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 on
a $ amount
Real Experience. Real Advantage.
© SAP 2011 / 22
[ 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 accurate
budget based on updated planned/actual amounts
Transparency on how CRM Fund budgets are updated
Dynamic budget gives additional insight on actual performance so companies can
adjust trade promotions as needed
Budget
Real Experience. Real Advantage.
Fund
© SAP 2011 / 23
[ Live Rates Planning and Execution Processes
Two key processes:
Planning
Set up live rates at higher levels in the customer/product
hierarchies and distribute down
Can incorporate budgets from an external application
Detailed planning for customer/product category combinations
and time
Execution
Monitor live rates plan
Maintain and update live rates throughout entire lifecycle
Funds Management updates
Real Experience. Real Advantage.
© SAP 2011 / 24
[ Live Rates in action: Planning
Key drivers of the live rates
planning include:
Planning Period
Sales Area
Account Hierarchy
Product Hierarchy
Access for users based on
Territory Management
Plan live rates based on
customer and product hierarchies
Designate ‘meaningful’ levels in
the hierarchies to plan live rates
View live rates from account
hierarchy or product hierarchy
perspective
Real Experience. Real Advantage.
© SAP 2011 / 25
[ Planning in account hierarchy view
Real Experience. Real Advantage.
© SAP 2011 / 26
[ Additional promotional budget
Real Experience. Real Advantage.
© SAP 2011 / 27
[ Live Rates in action: Execution
Update Funds in CRM
Identify different live rate
types for different funds based
on fund type in order to build
budgets for specific purposes
New budget posting
transaction to enable easier
tracking and reporting of live
rates budget
Full funds management
capabilities for trade
promotion planning, execution
and validation
Real Experience. Real Advantage.
© SAP 2011 / 28
[
CRM Fund AFTER Live Rates Posting to FM
Real Experience. Real Advantage.
© SAP 2011 / 29
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 30
[
Integrated Marketing Calendar – Definition
Real Experience. Real Advantage.
© SAP 2011 / 31
[
Integrated Marketing Calendar
Real Experience. Real Advantage.
© SAP 2011 / 32
[ Integrated Marketing Calendar
Marketing Planning Calendar
Enhanced marketing planning calendar leverages state of the art UI
technologies to provide new visualization and interactivity for
flexible planning through the marketing calendar
Marketing
Analytics
Segment
& List
Mnagement
Multiple object views users can view campaigns by its types as well as
brands, products and customers
Benefits
Improve alignment and
visibility into all
marketing activities
Increase collaboration
within marketing teams
in planning marketing
campaigns and programs
Real Experience. Real Advantage.
Interactive planning allows users to view dependent marketing activities,
marketing project creation, rescheduling of planning activities all directly
from the calendar
Split Calendar provides a second Gantt chart to plan and manage
related 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 the
object bar and tool tip descriptions
© SAP 2011 / 33
[ Integrated Marketing Calendar
Real Experience. Real Advantage.
© SAP 2011 / 34
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 35
[ 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
Real Experience. Real Advantage.
© SAP 2011 / 36
[ Example Promotion for Upload via eSOA
Real Experience. Real Advantage.
© SAP 2011 / 37
[ eSOA – Details to assist with the upload
Real Experience. Real Advantage.
© SAP 2011 / 38
[ Upload Process using eSOA
Parameter name
Filename with payload
Target Interface name
Parameter value
<path to xml document>
Comment
Enter the path to the
xml file using F4
TradePromotionCRMBulkCreateRequest Can create multiple
_In
promotions
http://sap.com/xi/CRM/Global2
http
NAMESPCE
protocol (http or https)
http
destination
(optional)
User name (backend)
<user name>
Password (backend)
Real Experience. Real Advantage.
<user password>
Avoids user log on
every time
Avoids user log on
every time
© SAP 2011 / 39
[ After Upload with eSOA – Promotions exist
Real Experience. Real Advantage.
© SAP 2011 / 40
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 41
SAP TPM POC Service
[ Project Benefits
Low investment risk due to
defined implementation prices
Implementation services delivered
by SAP Consulting
Fast and high-quality implementation
Lean product:
Lean installation and hardware requirements
Predefined packaged scope implementation
Ramp-up of customer resources
provided by hands on learning of
SAP TPM solution
Real Experience. Real Advantage.
© SAP 2011 / 42
[ How Can We Be Successful? TPM POC Service
Tactic
Impact
Prescriptive scope: preconfigured
and documented in advance
Predictable price and timeline
Knowledge Transfer
Customer resources are actively engaged
ensuring continual knowledge transfer during
POC
Delivered accelerators
Accelerators such project schedule and
configuration guides
Pre-project phase starts early
Customer team able to execute tasks such as
installation of software in
sandbox/development landscape
Rapid deployment
Foundation project which will drive
accelerated timeline for end-to-end project
Real Experience. Real Advantage.
© SAP 2011 / 43
Preliminary Outline
[ Trade Promotion Management Proof of Concept Service
2. Account planning
1. Headquarters
planning
Trade fund live accrual
Deals
Baseline models
Fund allocation
5. Evaluation and
analysis
Trade fund checkbook
Territory management
Annual event Planning
Promotion planning
1
2
5
3. Sell-in and
negotiation
Plan vs. actual
Funds tracking
Marketing calendar
4
4. Retail execution,
validation, and settlement
3
Status tracking
Promotion guidelines
Marketing calendar
Promotion analytics
Invoicing/execution
Accruals
Settlement
Checkbook updates
Real Experience. Real Advantage.
© SAP 2011 / 44
[ Proof of Concept Timeline - 6 Weeks
Project Initiation
Key Activities:
Project Planning
Project prep
Complete installation of
Sandbox/Development
environment
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
1 week
Real Experience. Real Advantage.
Solution Build
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
4 weeks
Solution Validation
Key Activities:
Complete Knowledge
Transfer of
Sandbox/Development
configuration
Validate standard
configuration with
Business SMEs
SAP Consulting:
Delivery Manager
SAP TPM Functional
BW/SEM BPS
Consultant
Customer Resources:
Project Manager
Basis
TPM Lead
Business SMEs
1 week
© SAP 2011 / 45
[ Scope
You can utilize resources from SAP Consulting for accelerated implementation
approach to enable a Proof of Concept TPM capabilities using SAP CRM in as little
as 6 weeks.
Key capabilities
Trade promotion management
Headcount planning
management
Resources
SAP Consulting 3 full-time resources, 5
part-time resources
Customer – 4+ full-time resources
Account planning
Sell-in and negotiation
Retail execution, validation
Execution and analysis
Web-based UI
SAP R/3 integration
Value received:
Shorter project duration
Lower total cost of ownership
Real Experience. Real Advantage.
Project timing
Approximately 6 weeks
Lower project risk
Shorter time to value
© SAP 2011 / 46
[ Project Roles
SAP Roles
Client Roles
Delivery Manager
Project manager
TPM Solution Architect
TPM functional
TPM Functional Resource (2)
SAP NetWeaver BW/SEM resource
CRM Tools – Web UI/ABAP
SAP ERP – sales and distribution,
financial accounting, profitability analysis
CRM Basis
SAP NetWeaver BW/SEM resource
Middleware resource
Basis
Middleware
Tools – ABAP, Web UI
Business subject matter experts
Real Experience. Real Advantage.
© SAP 2011 / 47
[ Learning Points
How to save on your trade projects in 2011:
SAP’s 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
Real Experience. Real Advantage.
© SAP 2011 / 48
[ Resources
Features and Functions: Trade Promotion Management
http://www.sap.com/solutions/business-suite/crm/featuresfunctions/tradepromotion/index.epx
Trade Promotion Management: Boost Brand Presence and
Profitability with SAP Trade Promotion Management
http://download.sap.com/solutions/businesssuite/crm/brochures/download.epd?context=6755C3ABC2B1FBBB1CBC553A64B5C02D85F1B8270CC006BF0
69EB028CFAC323E55E5217DDF5BBA4D8ABAF0A9537950CA7A90033447C83958
SAP: Strategic Value with Trade Promotion Management
http://download.sap.com/download.epd?context=1B0033DB5F88EF5A7F94AA5335E212BA83900D6FADE5DD4E97
9E4CC80F554F8B15976EE5D165396397524E5FE1278A961891F64A9C880078
CRM Overview:
http://www.sap.com/solutions/business-suite/crm/index.epx
Real Experience. Real Advantage.
© SAP 2011 / 49
[ Best Practices
Customer Plans or the Agreement object is the way to link
promotions together and add value to the selling organization
by putting it all together.
Live Rates may be common in the US, but the trend is moving
this global and SAP has a solution to support. Remember to
plan the year, not just the promotions.
The Integrated Marketing Calendar adds value by showing large
amounts of promotions graphically and great drill down
capabilities.
Real Experience. Real Advantage.
© SAP 2011 / 50
[ Key Learnings
New functionality in CRM 7.0 Enhp 1 provide the drivers to
start your project or upgrade plans now. General release
coming in June.
eSOA – a term that describes how to upload trade
promotions. This capability is real and plan how to take
advantage of it.
TPM Proof of Concept Service – A proven method to start a
project off with a working solution and real value to the
organization.
The CRM 7.0 Enhancement Pack 1 is worth the wait and adds
great capabilities to your trade execution solution.
Real Experience. Real Advantage.
© SAP 2011 / 51
[
]
Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education in this area of focus, visit www.asug.com.
SESSION CODE: 3707
How to save money on your trade projects in 2011 by using
SAP Trade Promotion Management
Real Experience. Real Advantage.