Transcription
Trade Promotion Management
Trade Promotion ManagementWhat is the role of Trade Promotion Management(TPM)?Frequently Used FormsHow are claims calculated?Exchange Partners On-Line (EPOL)Claim AdjustmentsPost Audit2
TPM’s FunctionSupport team for the buying staffProvide education for negotiated allowancesBilling support on all Trade Promotion activity:AdvertisingPrice ProtectionMargin RecoveryVendor ComplianceAnd much more3
Business Terms Agreement (BTA)Documents standard negotiated allowancesMediaMarket Development FundsLogisticsVolume RebatesVendor signature required4
Business Terms Agreement (BTA)5
Deal Offer Form (DOF)Form is located on Exchange Partners On-LineDocuments per event offers/negotiationsBill Back/Scan BackMarkdownsVPR’sAdvertising SupportStack out/Pallet PromotionNew Item AllowancesDOF is emailed to TPM at coop@aafes.com6
Deal Offer FormVendor NumberType of DealDatesLocationsItems and Amount7
In Store ServiceForm to be reviewed during negotiations with the buyerNeeds to include the service coordinator point ofcontact, phone number and email address8
Service Level Agreement (SLA)9
Volume Based ClaimsPercentage based claimCalculation is based on invoices processed during claim periodClaim periodsMonthlyQuarterlySemi-AnnualAnnualClaim TypesCoop AdvertisingDefective & ReturnsDistributionFreightVolume Rebates10
Volume Rebate ClaimsVolume Rebate claims are calculated for each calendaryear, regardless of the start date of the agreement for allapplicable procurement codes.There are three different ways to calculate the volumerebate:Volume applies % of maximum threshold achieved to all invoicedollars.Growth applies the % if the threshold is met to only those dollarsin the threshold(s) achieved.Progressive applies the % of each threshold to the dollars in thatthreshold.All volume rebates are assumed to be calculated asvolume unless otherwise specified as growth orprogressive in the agreement.11
Recovery ClaimsThere are three main margin recovery claimsPrice ProtectionMarkdown SupportSales12
Inventory Based ClaimsPrice Protection and MarkdownsFacility InventoryRun the Saturday after the effective dateExchange system limitations only allow weekly inventoryStore SalesRun from the effective date to the facility inventory dateWarehouse Inventory and Due InsRun on the effective dateMerchandise in TransitShipments between facilitiesRun on the Sunday after the effective date13
Sales Based ClaimsScan Backs and Bill BacksQuantities sold during the effective datesLocations are critical and based on DOF or SPS bulletinSPS claims do not include all facilitiesPercentage based discounts are calculated off of the costpriceWhen pulling sales from EPOL, include all applicablevendor codesEcomm promotions will be billed on separate claims14
Advertising OpportunitiesPrint AdvertisingWeekly Sales Flyer/Express Sales FlyerOperation: BeFit! (Wellness Publication)Specialty and Glam BooksExchange Coupon BookDigital TV-Radio-TheaterInternetExchange WebsiteThe Exchange CatalogHealth and Wellness Site- OpBeFit.comSocial MediaFacebook, Twitter, YouTube, Pinterest, Mobile MarketingPoint of Purchase SigningPosters, Endcap Panels, Outdoor Banners, Shelf PoppersAdditional Opportunities15
Vendor Compliance TypesAutomated Early Late VNC Program7 Day ship window for origin or destinationOnly includes purchase or to 300CONUS onlyElectronic Data Interchange (EDI)Accounts PayableQuality Assurance16
TPM Claim Format17
TPM Claims Online (EPOL)TPM claims and proof of performance are posted atExchange Partners On-Line ppliers must be registered on EPOL to receive andview claimsContact your buyer for accessSuppliers will receive an email alert when a claim hasbeen generated or revised18
Vendor Claim Search EPOLClaim copies and backupshould be available underVendor Claim SearchDetail for many claim typesare in the body of the claimSalesInvoicesPurchase OrdersInventory19
Claim AdjustmentsRevision/reversal process of a Trade Allowance ClaimClaim Adjustment FormInternal document used for revisions/reversals of claimsMust be received from buyer before processing any revisions inTAMSRevisions/reversals will be posted to Exchange PartnersOnline (EPOL) the following dayhttps://partners.aafes.com/EPOL/Login.aspxFor refund information please contact FA Co-op atFACoop@aafes.com20
Post Audit RecoveriesThe objective of a post audit firm is to offer a “profitrecovery” audit by providing solutions to improve thebottom line.Claim categories that post auditors review:Missed/Incorrect allowancesVendor compliance guidelines/freight bill violationsPricing discrepanciesBilling errorsSupplier has 30 days to submit payment or dispute. If noresponse, the claim is deducted from a future accountspayable payment.21
Post Audit RecoveriesPost Audit TimelinesTPM – Real Time (Feb – Jan)Primary - Profit Recovery Group (PRGX) – Prior fiscal yearAdmindac.claimtrax@prgx.comSecondary – Connolly Consulting (CCA) – Two years priorCynthia.McCarthy@connolly.com22
Questions:Please send all inquiries to coop@aafes.com.23
Trade Promotion Management What is the role of Trade Promotion Management (TPM)? Frequently Used Forms . Support team for the buying staff Provide education for negotiated allowances Billing support on all Trade Promotion activity: Advertising Price Protection Margin Recovery Vendor Compliance And much more 3 . Business Terms Agreement (BTA)
