Executing and Settling a Promotion
The execution and settlement activities complete the customer and promotion planning process by applying the agreed upon tactics in the order thru invoicing processing. The collection and posting of financial accruals and payments provide visibility into latest estimates and enables users to quickly identify and act on performance deviation. The true financial exposure of the return on investment is the vehicle to evaluate investment decisions for future promotions. The process steps include:
- Execute
- Apply promotion tactics in sales orders, delivery and billing activities. Collect promotion performance from internal and external data to calculate and post accruals.
- Monitor
- Retail execution and actual consumer sell-through versus orders and shipments to see demand exceptions, spot promotion compliance issues, and identify unauthorized activities such as forward buys and invalid claims.
- Settle
- Pay deduction and invoice claims. Relieve financial accruals and provide visibility to updated funds.
By evaluating actuals and current market conditions, the account manager can proactively identify gaps and potential volume opportunities to trigger corrective activities. This supports collaborative communication with the customer resulting in re-alignment of the plan to meet agreed upon targets.
How do we execute and settle a promotion?
- Generate condition contracts from the promotion trade spends.
- Apply promotion tactics in sales orders, delivery and billing activities.
- Collect promotion performance from internal and external data to calculate and post accruals.
- Execute retail activities and in-store audits.
- Pay deduction and invoice claims. Relieve financial accruals and provide visibility to updated funds.