Foodservice trade promotion management (TPM) is a very complex aspect of doing business with trading partners. If foodservice companies do not have an effective trade promotion management process in place, then there’s a good chance they’re at risk of losing money. Here are some tips to help you improve your current TPM process.
- Invest In A Trade Promotion Management Contract Management Tool – Investment in a contract management tool is essential to ensuring contracts are set up correctly and that contracts are managed properly. A contract management system provides the ability to easily gain insight into contracts and make sure they’re where they need to be in the overall process.
- Validate Claims Against Contracts – Don’t just pay out on invoices received! It’s important to validate that what a distributor or operator is invoicing for is based on the agreed upon contract. Often times the distributor or operator does not have the current contract updated in their system; therefore, it’s important to bump claims up against the contracts to ensure you’re not overpaying and to ensure all parties involved have the most up-to-date information. It also allows your sales team to identify if there are discrepancies on contracts so that they can address them appropriately and in a timely manner.
- Know Distributor Deduct Policy Timeframes – If you have distributors billing back that also have deduct timeframe policies, then it’s extremely important to ensure claims are paid within their deduction timeframe. Otherwise, you will run the possibility of issuing a check at the same time they deduct, which will result in double dipping and a loss on your end. Maintaining a low deduction balance is important to your business so make sure you’re only allowing deductions where appropriate.
- Match Deductions to Claims – If your organization strives to maintain a low deduction balance, then it’s important for you to verify if a deduction has been taken prior to paying out on an invoice. Match your deductions against your invoices to prevent double payments and keep a low deduction balance.
- Rebill For Invalid Deductions – If you find that a distributor has deducted but that they deducted for items that were not valid against the contract, then it’s important to rebill them for those items. A few dollars here and there may not seem like a big deal; however, those few dollars add up over time.
Ensuring you have the right foodservice trade promotion management system, such as GoSimple, will help you implement the above mentioned tips. Contract management and claim settlement is a huge part of your business and requires certain steps to be taken in order to keep things within your business in line. If you’re interested in learning more about how GoSimple can help you reach your trade promotion management goals, contact GoSimple to request a demo!
Want more tips to TPM success? Download our e-Book!