solution
The Problem
Why is it that, for most sales departments (particularly FMCG companies) promotions management and forecasting are the "bane of their existence"?
Promotions Management
- The lack of systems and process around managing this very large sum of money
- The lack of visibility and reporting
- The lack of visibility of future planning
- The constant "CHURN" between finance and sales trying to decipher who's numbers are right
- Sales people are not accountants
- Spending huge amounts of time with little or no return for the sales department
- Comments like "Trade spend is a black hole and I hate when it comes around every month" are common in FMCG companies
- FMCG companies spend anywhere from 15-25% of their turn over on trade spend with retailers
Forecasting
- Sales people generally don't think forecasting adds any value to their job
- Comments like "I'll get to the forecast when I get to it" are common among sales people
- Most account teams are measured both by the business and the retailer in "DOLLARS" but the supply chain talks in "CARTONS". This is a major disconnect in many companies
- Many companies have multiple sets of forecast/budget/sales plan numbers moving around their business, time is wasted agreeing on the number leaving little time to execute the plan