Trade Spend Management: Industry trends and innovations
Trade Spend Management is undergoing a remarkable evolution with the emergence of advanced technologies and data-driven solutions. Companies are increasingly utilising artificial intelligence and machine learning algorithms to optimise their investments in trade partners, such as trade promotion strategies. The used solutions enable better decision-making, improve forecasting accuracy, and drive promotional effectiveness.
Effective CPG trade spend management now more than ever relies on data-driven decision-making and deep collaboration with retail partners. A holistic approach, looking at all investments & pricing, throughout the workflow, ensures that carefully collected data and refined promotional campaigns drive growth and win-win outcomes for manufacturers, retail partners, and customers.
This blog will explore best practices for trade spend management and delve into the strategies that foster collaboration and success in the rapidly evolving CPG and retail industries.
Trends and Innovations in Trade Spend Management
Consumer packaged goods and retail are both fast-moving industries. But so is technology as a whole.
As we’ve seen, CPG manufacturers and their retail partners are constantly striving to stimulate growth. This means suppliers are always under pressure to deliver new programmes to achieve this.
Data-driven decision making is playing an ever-larger role. Analytics and AI driven forecasting help executives better inform future campaigns, and analyse vast amounts of data over the course of the year, to spot trends and help manufacturers and retailers optimize their efforts.
This is happening within a broader context of digital transformation. Automation is key, whether that’s in managing logistics and stocking, or in generating and distributing the data needed to enhance decision-making.
Digitization tends to break down silos, freeing up data flows, and enabling far closer collaboration, both within CPG companies and with their retail partners.
And technology continues to have a profound effect on route to market, whether that’s the growth of online retailers or traditional retailers’ own ecommerce activities.
All of this can have a positive impact on manufacturers’ and retailers’ sustainability efforts.
Smoother logistics and increased automation, together with close collaboration, can squeeze out waste in supply chains. At the same time, automation and digitalization can help eliminate waste in trade spend, by helping foster better focused activities, by exploiting digital channels and reducing the use of one-off, printed materials.
Best Practices for Trade Spend Management
Whether the aim is increasing sales, or bolstering brand awareness, your trade spend activity should be tied to overall business success. Which means you should be able to measure its effectiveness.
So managing your trade spend effectively starts with the development of clear goals and objectives. These should be part of a comprehensive strategy that spans a range of data, including pricing, promotional spend, long-term trade investments and other costs.
This is all fuel for the data analytics that will allow you to continuously track the ROI of investments and optimize them as they develop.
But managing trade spending effectively also depends on CPG professionals developing deep and meaningful collaboration with retail partners – and your counterparts within your own organization. The introduction of trade spend management software drives efficiency in administration and analysis. This frees up time for CPG professionals to invest in achieving shared goals.
Conclusion: you need a platform that allows you to easily share data and develop insights. But you also need to develop mutual trust and understanding with internal and external partners to get the most out of them. It needs a holistic approach throughout the workflow. And a platform that ensures meetings deliver actionable insights.
That way, your carefully collated data, fiercely negotiated prices and long term investments and finely tuned promotional campaigns become a launch-pad for developing fresh activities that result in win-win outcomes for you as a manufacturer and your retail partners. And which delight your customers.
Visualfabriq Trade Spend Master
Achieving success in trade spend activities requires a comprehensive approach and a deliberate focus on fostering mutually beneficial partnerships with your retail collaborators.
Visualfabriq Trade Spend Master has been meticulously designed to empower you in this endeavor. By consolidating all the essential data necessary for forecasting and strategy development, this cutting-edge solution leverages advanced artificial intelligence.
Seamlessly integrating with ex-factory, EPOS, and syndicated data sources, Visualfabriq’s Trade Spend Master offers complete visibility into your strategies right from the start. This real-time insight allows you to monitor profitability and ROI effortlessly.
With just a simple click, you gain the power to optimize your strategy on the fly, effortlessly adjusting prices and discounts. Additionally, you have the flexibility to configure a workflow tailored to your specific needs, eliminating manual tasks and incorporating streamlined approval processes.
Visualfabriq’s Trade Spend Master ensures a single, unified truth for all stakeholders, including your finance team and executive management. This unified perspective empowers you to focus your efforts where they will yield the greatest rewards – including the crucial task of delivering strategies that bring undeniable benefits to yourself, your retail partners, and ultimately, your consumers.
Effective trade spend management is essential for businesses to optimize their financial performance and achieve sustainable growth. Throughout this blog, we explored the challenges faced by companies in this area and the benefits of implementing Visualfabriq’s trade spend management solutions. By utilising advanced analytics, automation, and real-time insights, Visualfabriq empowers businesses to make informed decisions, improve collaboration with trade partners, and drive profitability.
To truly unlock the potential of your trade spend management, you can take the next step and book a demo with us today. Learn more how AI can revolutionise your approach to trade promotions, revenue optimisation, and strategic planning.