How Trade Promotion Management in CPG Could Be Quietly Costing You Millions

CPG companies often miss deduction errors in trade promotion management. These are small mistakes that quietly drain millions from their bottom line. Retailer chargebacks can build up unnoticed, until they surface at the worst possible moment. Imagine facing an audit or a board meeting, suddenly having to justify millions in unexplained write-offs. “From what I’ve seen, it’s just like a health issue. At first, people ignore it, pushing it under the rug. The deductions pile up, they start aging, and

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Trade Promotion Management (TPM) in Small Companies (Revenue below $30-50 million)

The accurate and timely calculation of trade promotion cost is a challenge faced by all consumer-packaged goods companies. The absence of an in-house capability to calculate and record this expense can result in unprofitable sales without management knowledge. Since companies can receive retailer deductions as late as 1-24 months after the date of an actual sale, companies must have visibility around trade promotion offers to the customers, what these sales represent in terms of trade promotion cost.