1. Turning Data into Actionable Information
TradeSmart, Trade Promotion Intelligence
There’s No More Excuse For Poor Performing Promotions
Janet Dorenkott
440-899-3296 x225
janetd@relationalsolutions.com
Karen Kurtzweil x239
karenk@relationalsolutions.com
2. Confidential - for limited circulation only
“Top 10
Companies on
the Move”
BlueSky
Integration
Studio
“Best at
integrating POS
with Internal data”
Weatherhead 100
Fastest Growing
Businesses
First Release of
Oracle
Developer of
the Year
Data Warehouse &
BI Consulting
1996 - 98 1999 - 01 2002 – 04 2005 - 06 2007 - 08 2009 - 10 2011 – 12 2013-2015
“Data Warehouse
of the Year!”
BlueSky “Coolest
New Technologies”
DataStage ETL Best
Implementors Award
Company Background
Informatica’s
Partner of the Year
Selects POSmart
to embed in DSR
Partnering to
support DSMi
2014 NEO
Software
Assn. “Best
Software”
3. Confidential - for limited circulation only
Lowes
Kroger
Costco
Shipments
Other POS data
EDI/FF/txt/Access, etc
Wholesaler/Dist
Nielsen
Submit Reports
Most time spent gathering disparate
data
•G ather ing
•Cleaning
•Integr ating
•Justifying
?
Inconsistent reports lead
to questionable decisions
Carrfore
Wal-Mart, Shiloh
Retail Link, EDI/AS2
?
?
? ?
?
?
The POS Data Dilemma
Ahold
IRI
4. Confidential - for limited circulation only
• G a t h e r i n g
• C l e a n i n g
• I n t e g r a t i n g
• J u s t i f y i n g
What Makes CPG Data Cleansing So Challenging?
Property of Relational Solutions, Inc. By Janet Dorenkott June 2015
Big Data, Omni-Channel
& New Data Sources
End User
Requests Change
Data Frequency is
Inconsistent
Data Formats Vary
From Source to Source
You Are at the Mercy of
Retailer Decisions
Constantly Changing
Conditions
POS is Not Always Available
& May Cost Money
Everyone Wants to See
Data Differently
Different Sources?
Different Reliability
Every Retailer Provides
Different Data Elements
Lack of Integration &
Manageability
5. Confidential - for limited circulation only
Every Retailer & Data Provider gives Different Data Elements
Date Time Units Price Store # In Transit OH Inv OH Qty In
Warehouse
On
Order
9/16/2015 08:12:00 150 $3.20 #442 30 20 10 20 50
Date Time Units Store #
9/16/2015 10:14:06 122 #210
Retailer A
Retailer B
6. Confidential - for limited circulation only
Aligning Different Week Start & End Dates
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday Saturday
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
7. Confidential - for limited circulation only
Different Sources, Different Formats
EDI 852
EDI 867
SAP
Retailer
Portals
AS2
Oracle
TXT
SQL
Excel
CSV
How Do I get
all these
sources into
1 common
database
type?
FTP
Access
8. Confidential - for limited circulation only
Different Sources, Different Reliability
Missing
Data
EDI
Inconsistencies
UPC
Issues
Portal
is Down
Re-Casts
• Data was supposed to come in from CVS today! Where is it?
• RetailLink is down!
• Walgreens is padding UPC codes in the front with 2 digits!
• Food Lion is padding UPC codes in the back with 1 digit!
• Kroger wants us to buy data from Market 6!
• Dollar General was missing 2 days from last month!
• Target EDI came in 4 hours late!
9. Confidential - for limited circulation only
Different Retailers & Data Providers, Different Hierarchies
Internal
Category
Brand
Sub-Brand
Item
Product #
Retailer A
Category
Sub-
Category
Brand
Product #
Product ID
Sku
Retailer B
Category
Sub-
Category
Item #
Item Name
Sku
10. Confidential - for limited circulation only
Frequency of Feeds Vary
EDI
Daily
Syndicated
Data Monthly
ERP Data
Every Second
Currency
Conversion
Daily
Daily POS
Once a Month
RMA
Annually
Plan Data
When
Available
Weather Trends
Quarterly
11. Confidential - for limited circulation only
Constantly Changing Market Conditions
New Competitors New Retailers
Trends
New Laws
Acquire a Company
Economy Management Direction
National Conditions Natural Disaster
New Corporate Direction
Retailers Partners
Company switches
data providers
The company adds a new data source
Retailer Contracts
New CEO
12. Confidential - for limited circulation only
You Are Subject To Retailer Decisions
Make Portal
Changes
Start Sending
Inventory
New POS Source
Category Focus
Changed
New Buyer
Update Contract
Restrictions
Policy
Changes
More Data Offered
Opened New Stores
Acquired Another
Retailer
13. Confidential - for limited circulation only
End User Requirements Change
I Need to see
Target compared
to Walmart
Include
Shipments in
this Report
How do I
compare my
sales with
plans?
We just
bought new
demographic
data
I need to
calculate
potential
impact
I upgraded
our Nielsen
contract
We switched
from SAP to
Oracle
I want to
compare this
with weather
trends
I want to compare
POS from the
retailer with POS
from IRI
14. Confidential - for limited circulation only
POSmart
Consistency
• Easy Access to
Information
• Improved Productivity
Streamline Data
Gathering
Synchronize, Integrate &
Validate POS
Wal-Mart/Shiloh
EDI /AS2/Retail Link
Promo/Forecasts
Costco
Nielsen
Shipping
Target
IRI
Carrfore
EDI, AS2
Walmart
Wholesaler/Dist
Kroger/Market 6/
RSI/DunnHumby
Productive Meetings
Integration & Harmonization
15. Confidential - for limited circulation only
Military,
Distributor
Budget
3rd Party
GL
Forecasts
Reports
Scheduled
& Cached
Shipments
SourcesRetailers
WalMart
Home Depot
Costco
Kroger/DunH
Meijers
Sam’s
Distributors
POSmart
Integrate, Validate,
Synchronize & Manage
BlueSky
Over 200 KPI’s
Or Other BI Tool
DW
POS
Integrator
BIS
EDI, Text, Flat
Files, Access,
Retail Link,
Partners
SAP, JDE, DB2,
Oracle, JDA
Users access via
web
3rd Party Data:
AC Nielsen/IRI
Spectra/NPD,
Market6, RSi
Forecast
Shipments, Promo,
Vendor
TradeSmart
POSmart
“Smart” Architecture
OtherTPM
BlueSky Analytics
Power User
BlueSky Viewer
Casual Users or
BlueSky XL Users
Control
Center
16. Confidential - for limited circulation only
TPM - TPO or TPI/TPA
TPM
The upfront process of creating trade promotion plans. Applications include home grown
solutions, SAP TPM, Siebel, Demantra, etc.
Weakness
– Very little exposure to success factors
– Relies on sales rep “hunch” factor
– Little understanding of actual outcomes
– Lacking true ROI analysis
TPO
Choosing trade promotional activities & timing to predicted results & objectives.
“What if” Analysis
Learned Analysis
Only 1% of all CPG companies are actually implementing TPO
– Low adoption rate due to skipping TPI. Complexities of gathering, harmonizing
feeding back trade spend information
TPI / TPA
A Necessary Step between TPM & TPO
Leverages an enterprise architecture.
Automates the integration & harmonization of various
trade components
The intersection of plans, shipments and consumption as
it relates to trade promotions
The ability to accurately analyze the outcomes of trade
promotions including true ROI
The ability to understand whether or not promotions were
properly executed and the amount of retail compliance
Provides a repository for all historical, multi-year analysis
Ability to feed results to other systems
Makes TPO Possible & Successful!!!
TPI GAP
17. Confidential - for limited circulation only
What is TradeSmart?
TradeSmart leverages the Smart Solution Architecture with the automation,
integration and harmonization of various trade components
Promotion Automation and Analytics solution.
The intersection of plans, shipments and consumption as it relates to trade
promotions
The ability to accurately analyze the outcomes of trade promotions and compare to
planning expectations across all retail segments
The ability to understand whether or not promotions were properly executed and
the amount of retail compliance
The common repository for all historical promotions which enables multi-year
analysis/comparison of trade spend initiatives
The ability to feed results to other systems – planning, supply chain, predictive,
merchandising, etc.
TPI – Trade Promotion Intelligence
18. Confidential - for limited circulation only
Automate
Integration &
Harmonize into
Data Model
Plan
Improvement
Trade
• Shipments
• Products
• Plans
• Syndicated
BlueSky
PromoPro
• Planning Data
• Shipments
• Consumption
• IRI
• AC Nielsen
• POS
• Master Data
• Forecast Data
• COGS
• Other
Source Data
Capture
Disparate &
Complex
Source Data
TradeSmart Solution Architecture
Relational Solutions, Inc.
BIS
TradeSmart
Designed for
fast access,
Powerful
Analytics, Easy
KPI Dashboard
19. Confidential - for limited circulation only
Rule-based system. Allows for a streamlined process where ROI calculation is
consistent and accurate
Process driven capabilities allowing visibility to non-compliant events
Insight into planned spending to retail execution by event or product is visible
up the hierarchy
Uses cost information to understand your true margins and contribution
Provides visibility to historical pricing to protect against margin erosion
Knowing “sell-through” and supply chain visibility by incorporating shipments
Benefits of TradeSmart
20. Confidential - for limited circulation only
Benefits of TradeSmart (Cont.)
• ROI: Measures effectiveness/efficiency of a trade promotion event
• Promotion Effectiveness Index: Which promotions generate the largest
incremental gains
• Incremental Weeks: Promotion generated x additional weeks of sales
• % Lift: Promotion drove x% increase in sales
• Promotion Efficiency: % of promoted volume that was incremental to the
brand/PPG
• % Sell Through: Remaining inventory affects event ROI and forward buy.
• Promo Event Tactics Analysis – Results indicate potential revisions to tactical
mix to improve ROI.
• Purchase Frequency Analysis: Optimize promo event timing, compliment the
product life cycle.
21. Confidential - for limited circulation only
-Understand ROI for Wholesaler and Retailer
-Know that Events are working for BOTH you and the customer.
-Create Win-Win during JBPS (Joint Business Planning Sessions) with Retailers
Relational Solutions, Inc.
Winner for
Retailer but
not Supplier
Winner for
Supplier but
not Retailer
BlueSky Report for JBPS
22. Confidential - for limited circulation only
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Contact Janet Dorenkott 440-899-3296 x225
Janetd@relationalsolutions.com
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Editor's Notes
Relational Solutions has been in business since 1996. Our back ground is in data warehousing and business intelligence. Over the years, we built business intelligence applications across all industries and then began focusing on consumer goods manufacturers in 1999. Around the same time we started development of our POSmart data model. That’s because we kept running into the same issues related to POS data and syndicated data. Calendars didn’t align, hierarchy’s didn’t align, different retailers used different terminology, and so forth.
Our data model was designed in such a way that it would grow and change with the business needs of the company, the industry and the users. Our background in data warehousing led us to develop this flexible architecture because we know that once users start getting information, they want to see more insights and that typically requires us to bring in new data. So our knowledge in data warehousing really helped us develop this open, architecture that a company can constantly be growing in to. This is not a reporting tool that reports off one source and that you eventually outgrow. Our architecture is designed for companies to grow in to. You can start out small with a couple retailers and expand it based on your needs and budget.
Over the years, we have been recognized for our industry expertise as well as our technology expertise. We were named TDWI’s data warehouse of the year. Oracle’s developers of the year. One of Consumer Good’s “Top 10 companies on the move.” We won Consumer Goods “Reader’s Choice” awards. IBM selected our solution to embed in their Smarter Commerce. Infosys embeds our solution in their “TradeEdge” application for emerging market data. SAP uses our POS cleansing solution for their Hana application. Most recently we were named a finalist in NEOSA’s “Best Software” category and just last month we were named as one of the “Most Promising Big Data Companies” by CIO Magazine. So you can feel confident in knowing you’re working with a highly experienced group of consultants with a sound solution.
This slide depicts the data dilemma that consumer goods companies face. The data is there. You get it. You might even have the impression you’re getting too much data. But that isn’t the case. The issue is having that data in a usable and reliable format. The data comes in from so many different sources that it’s impossible to get the full value out of it. Most companies are using it just to produce the reports they need. They just don’t have the time to create new insights even though the data is there.
Each one of these source provide information and potentially reports. But analysts spend an average of 80-90% of their time gathering and pulling together data. Inevitably, there are discrepancies in the reports and analysts are then stuck spending more time trying to figure out where the numbers came from. Not only is this a very tedious task but when people’s numbers don’t match, there is a lack of confidence in the data and rightfully so. But it wastes not only the analysts time but it also leads to wasted time on managements part when they argue over who’s data is right and could potentially lead to costly and incorrect decisions.
On top of that since 90% of an analysts time is spent gathering, cleaning, integrating and justifying their reports. This is time that keeps analysts away from actually getting to analyze the data and gain new insights. This is why our enterprise solution offers companies a very fast ROI.
This slide depicts the data dilemma that consumer goods companies face. The data is there. You get it. You might even have the impression you’re getting too much data. But that isn’t the case. The issue is having that data in a usable and reliable format. The data comes in from so many different sources that it’s impossible to get the full value out of it. Most companies are using it just to produce the reports they need. They just don’t have the time to create new insights even though the data is there.
Each one of these source provide information and potentially reports. But analysts spend an average of 80-90% of their time gathering and pulling together data. Inevitably, there are discrepancies in the reports and analysts are then stuck spending more time trying to figure out where the numbers came from. Not only is this a very tedious task but when people’s numbers don’t match, there is a lack of confidence in the data and rightfully so. But it wastes not only the analysts time but it also leads to wasted time on managements part when they argue over who’s data is right and could potentially lead to costly and incorrect decisions.
On top of that since 90% of an analysts time is spent gathering, cleaning, integrating and justifying their reports. This is time that keeps analysts away from actually getting to analyze the data and gain new insights. This is why our enterprise solution offers companies a very fast ROI.
POSmart streamlines the cleansing and integration of all these various data sources and puts them into a common repository where the data is clean and reliable. It’s also in a format that’s designed for easy reporting. Reports can be automated to send to users and power users also have an easy to access database where they can do ad-hoc querying. The result is far more productivity both from the analysts position as well as more productive management meetings. In addition, you have more access to reliable information than you’ve ever had. This data will help you know more about your business, provide more value to your management, understand your customer’s better and provide more insights to generate more profits.
The POSmart architecture is open. The data base is independent and can reside on Teradata, Oracle, DB2 and most others. If you can imagine everything on the left side of the white line exists at all our customers. This is just a sample of data sources, but you get the concept. On a nightly basis our BlueSky Integration Studio looks for new data. Any new data is then brought into our staging area where we cross reference the retailer data with your internal data, apply business rules, we align internal data with external data and we load the data into the POSmart data model where end users can easily access and query the data. Reports that were scheduled to run are then cached on the server so when end users come in in the morning, all their reports are already there and waiting for them. In addition, analysts are able to create new reports.
TradeSmart leverages the Smart Solution Architecture. It leverages the automation, integration and harmonization of various trade components required to accurately measure trade spend ROI
It is a promotion automation and analytics solution that actually lets you start measuring promotion performance as the promotion is going on.
It brings together promotion plans, shipments and consumption as it relates to trade promotions. The promotion plans may be in Excel or they may be coming from applications like SAP TPM or Demantra or even Siebel or Prescient. The ability to bring together plans with shipments and consumption is what gives TradeSmart the ability to accurately measure ROI for both the manufacturer as well as the retailer.
It offers the ability to not only accurately, analyze the trade promotions but it also lets you compare planning expectations across all retail segments
Users can understand whether promotions were properly executed along with retail compliance
TradeSmart provides a common repository for all historical promotions, enabling multi-year analysis and comparison of trade spend initiatives
In addition results from TradeSpend can be fed into other systems such as planning, supply chain, merchandising, and so on.
The TradeSmart Architectue leverages the Smart Solution Architecture. It brings in data from your trade planning along with shipments, consumption, master data, forecasts and cost of goods sold. In addition, it brings in your master data. It transforms all those sources into a common data type, aligns the data for internal reporting and retailer reporting and presents you with reports that show you how your promotions are performing. In addition, you’re able to create ad hoc queries and even compare promotions with historical programs.
ROI = Based on TOTAL sales and/or INCREMENTAL sales (Methodology TBD)
YOY – Example. A high ROI with low sales = an efficient promo event, but sales are not growing…why?.
Tactical Analysis - CPI (cost per impression) is calculated tactics is compare efficiency tactics to Indicates what components of the tactical mix can be tweaked to improve ROI.
Coupons – Preferred purchase requirement vs discount compare promo efficiency to compare promo results
This report shows an example of the type of information you would want to present at a joint business planning session with your retailers. The second column shows promtions that were positive for the manufacturer. The 4th column show performance of the promotions for the retailer. The first column shows KPI’s with up arrows that show the promotions that were both successful for the retailer as well as the manufacturer. These are obviously promotions worth repeating.
We would like to thank you all for joining us today. We invite you to follow our Relational Solutions training blog by going to our website at relationalsolutions.com. We also suggest you join the Demand Signal Repository Institute on LinkedIn. You can also see more training video’s on our Relational Solutions, YouTube channel. We ask that you follow Relational Solutions and Janet on Twitter, LinkedIn and Facebook and connect with us on LinkedIN. You are also free to contact us via phone and email. Thanks again for joining us and we look forward to your participation next Wednesday!