Many companies struggle with Trade Promotion Management due to inefficiencies in procedures and poor cross-functional collaboration. Poor data accuracy further complicates the issue.
Financial issues, unresolved deductions, and poor planning cause revenue loss and inefficiencies. While technology can support TPM, it cannot fix broken workflows or misaligned teams.
Effective trade promotion management requires clear processes, accurate data, and strong cross-functional collaboration. Without these elements, businesses risk financial misalignment and missed opportunities.
Let’s explore how financial consultants can help trade promotion management to be a success.
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Why Does Trade Promotion Management Fail?
Many companies struggle with trade promotion management due to infrequent reviews and updates. Outdated processes persist, leading to inefficiencies and financial discrepancies. Poor data accuracy and system integration disrupt TPM and ERP sync, creating challenges. Poor planning and accruals misalign promo costs with sales.
Miscommunication between teams is another major issue. Accounting, finance, and sales departments often work in silos, making gaps in execution. Additionally, unclear deduction management processes lead to revenue leakage and unresolved disputes.
TPM fails due to siloed sales, accounting, and finance teams.
Without clear ownership, no one manages the full TPM process, causing inefficiencies. Poor data management leads to inaccurate accruals and deductions. Without effective analysis, companies fail to assess whether promotions drive real business value. Delays in deduction clearing cause cash flow problems and financial inaccuracies. Relying too much on software worsens the issue, as technology alone cannot fix broken processes or untrained teams.
5 Early Signs of a Mounting TPM Problem
If trade promotions management isn’t handled properly, it can snowball into a major financial headache. It is common for the issue to go unnoticed for companies until year-end audits. That’s when the auditors pointed out that the accruals were insufficient. And when that happens? It’s not just a minor accounting adjustment—it’s a massive, unexpected hit to the P&L.
What starts as a small miscalculation in trade spend can quickly turn into millions in unaccounted liabilities. That means scrambling for last-minute budget adjustments, strained cash flow, and even potential compliance risks. Worse, it erodes trust with stakeholders and can lead to corrective actions that disrupt operations.
This isn’t just a theoretical risk. It’s a reality for companies that don’t have a strong handle on trade promotions management. The sooner it’s addressed, the better.
So, what are the early warning signs of a mounting TPM problem?
- Frequent mismatches between ERP and TPM systems lead to financial discrepancies and inefficiencies.
- Unresolved deductions stack up, causing cash flow issues.
- Inaccurate accruals and order-to-cash inefficiencies strain finances.
- Blame shifting causes sales-finance conflicts over budgets and deductions.
- Incomplete and inconsistent data make it hard to check trade promotions. Without clear reports, issues keep repeating, blocking improvement.
Why TPM Software Alone is Not the Solution
While TPM software is essential, it cannot fix underlying process inefficiencies on its own. Success requires strong cross-functional collaboration between sales, finance, and accounting to ensure smooth execution. Correct data entry and checks help avoid financial errors. Ongoing training and continuous process improvements help teams stay aligned and effective. A clear process for handling deductions helps resolve disputes fast and keep finances accurate.
Technology helps TPM, but clear processes and workflows are essential for success. Sales, finance, and accounting must collaborate, with accurate data guiding decisions. Teams should review reports and adjust strategies, not rely on automation.
How Financial Consultants Can Drive Trade Promotion Success
Financial consultants make TPM more effective, (like a GPS for your trade dollars, guiding every penny to the right place), fixing inefficiencies, and keeping costs in check. Think of us as an extension of your accounting and finance team, handling the entire process from start to finish.
We take care of accrual calculations, deduction clearing, cash application, and reporting, so you don’t have to. Our expertise in Trade Promotion Management (TPM) helps optimize your deduction management process, ensuring you generate meaningful reports from your deduction data.
Not only do we provide reports that empower management with actionable insights, but we also help recover lost revenue by identifying unauthorized deductions. Moreover, our TPM experts train teams with the knowledge needed to manage TPM system. We’ve become the leading experts in solving this, quickly and cost-effectively, with many satisfied clients in the last 3 years.
We help by,
Training & Resources
Training finance, sales, and accounting teams on TPM ensure they understand the full process. Financial experts help businesses manage accruals and deductions, reducing financial risks. Better data management reduces errors, and compliance helps avoid audit issues. Better decision-making helps finance and sales teams analyze promotions effectively. Clear TPM workflows improve operations, while ongoing support ensures long-term success.
Trade Promotion Management Support—With or Without TPM Software
Most CFOs see vendors trying to sell them a TPM system. But what happens after the purchase? Too often, companies invest in software only to realize they don’t have the expertise to run it effectively.
That’s where we come in. We’re not here to sell you another system! We’re here to make your existing TPM process work, whether you have software in place or not.
As TPM experts, we can:
✅ Run your TPM system efficiently, ensuring you get the most value from it.
✅ Handle the entire process manually if you don’t have a system.
✅ Optimize deduction management to help you generate meaningful reports.
✅ Train your team to understand and execute TPM processes effectively.
Recently our client faced a major pain point—they had the system but lacked the training to use it properly. We stepped in and solved the problem. Now, they’re maximizing their TPM investment instead of letting it collect dust.
No more struggling with complex software or lost promotional dollars. Whether you need full support or just expert guidance, we’re here to help.