Crunch the Numbers that Really Matter (hint:they’re the ones that relate to downstream demand)
Katrina Lamb | June 18th, 2010Filed under: Managers View | Tags: active ways to turn trade spend into trade investment, applies analytical methods in order to better align and optimize trade decisions with pricing and other key marketing levers, business intelligence, distribution, Facebook Generation, foodservice manufacturers, foodservice value chain, optimization, predictive analytics, pricing, quantitative analysis in the trade spend practices, scientific pricing, sentrana, trade spend, win-win programs with trade partners | 1 Comment »
A New Approach to Trade Spend for Foodservice Manufacturers
There is no shortage of quantitative analysis in the trade spend practices of foodservice manufacturers. Unfortunately, very little of this analysis helps give decision-makers insights about the effectiveness of their trade spend programs. The numbers being crunched do not relate to signals about actual downstream demand, but rather to the formidable mountain of claims from their distributors. These claims come in all manner of data formats and accounting entries and it typically takes armies of brokers, salespeople and financial staff to figure them out. After all the cumbersome and error-prone line-by-line calculations to validate claims are said and done, you are no more informed about the profitability or the potential risks associated with any given program. No wonder there is widespread dissatisfaction with the effectiveness of these programs. Over 75% of manufacturers in this sector consider their trade spend initiatives to be inefficient, according to the 2010 Market Intelligence Foodservice Trade Survey. Read the rest of this entry »