Recent Survey Reveals Significant Dissatisfaction with Homegrown Trade Promotion Management Tools
PITTSBURGH, PA (January 11, 2012) – A recent 2011 “CPG Year in Review” survey reveals significant dissatisfaction among Consumer Packaged Goods (CPG) manufacturers regarding their current homegrown TPM systems and processes.
Despite the increasing importance of trade promotion management, the “CPG Year in Review” survey shows that only 44 percent of the 120 CPG manufacturers who participated are satisfied with their TPM process. The survey also concluded that a large majority are dissatisfied with the accuracy and timeliness of their data, the ability to plan and forecast as well as reporting and analysis capabilities.
The use of Excel® and other homegrown tools to manage TPM activity proves to be the biggest impediment for CPG companies, with only 18 percent being satisfied with this traditional approach. According to the survey, manufacturers are taking action to remedy the situation. While about half of the industry continues to rely upon homegrown systems, almost 30 percent have purchased a software solution. The impact has been immediate with survey results showing satisfaction is twice as high for those who adopted Software-as-a-Service (SaaS)-based tools.
SaaS/cloud-based systems are gaining traction for its quick implementation process, low cost and high return on investment within the first year. These systems also automate many manual processes and offer better visibility into sales and promotion effectiveness therefore proving to be more efficient than homegrown tools.
About the “CPG Year in Review” Survey
During November and early December 2011, 120 manufacturers completed the online survey. Sixty percent were food and beverage companies and 40 percent were non-food manufacturers. One-third of the participating companies have annual revenues exceeding $1B in sales, while one-third ranked between $250MM and $1B in revenue. The remaining one-third reported sales at under $250MM.
About TradeInsight
TradeInsight, a global provider and thought leader in Trade Promotion Management (TPM) solutions, offers the only TPM software application in the marketplace that provides visibility of spending from the warehouse dock to the consumer. Founded in 1983, the company gives Consumer Packaged Goods manufacturers the power to integrate TPM into existing sales and marketing accounting systems to better track trade spend performance across the entire supply chain. TradeInsight’s low cost Software-as-a-Service (SaaS) application can be deployed in a matter of weeks not months with no upfront fees and a proven return on investment within the first year. To learn how to sell more and spend smarter, visit www.TradeInsight.com, call 800.463.6634 or browse TradeInsight’s online resource library of whitepapers, webinars and industry-related articles. Connect with TradeInsight on LinkedIn, follow the company on Twitter and become a fan on Facebook.
