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Function documentationTrade Promotion Monitoring

 

You can monitor trade promotions and view their statuses, which are indicated by red, yellow, or green traffic lights. For this purpose, alerts are predefined in Business Planning and Simulation (BPS). You can modify existing alerts or define your own.

Note Note

For more information, see KPI Valuation for an Alert on SAP Help Portal at Start of the navigation path http://help.sap.comInformation published on SAP site Next navigation step SAP ERP Next navigation step SAP Strategic Enterprise Management Next navigation step Business Planning and Simulation (BW-BPS) End of the navigation path.

End of the note.

Features

You can use the following four predefined alerts that are contained in the CP: Sales Planning with Promotions planning profile (4TPM9000) in BPS:

  • Incremental Costs (4TPM9596)

    This alert shows the ratio of promotion budget to uplift quantity. This ratio gives you an idea of how high the costs for the expected uplift can be.

    Calculation: Budget (0BUDGET) ÷ Uplift Quantity (0UPLI_QTY)

    The higher the value of this ratio, the better. The following traffic lights are displayed:

    • Red traffic light, if incremental costs are lower than 0.5

    • Yellow traffic light, if incremental costs are higher than 0.5 and lower than 2

    • Green traffic light, if incremental costs are higher than 2

  • Incremental margin (4TPM9598)

    This alert shows the ratio of net revenue to billed quantity. This ratio gives you an idea of how the margin can develop as a result of the planned trade promotion.

    Calculation: Net Revenue (0COPANETRV) ÷ Billed Quantity (0BILL_QTY)

    The higher the value of this ratio, the better. The following traffic lights are displayed:

    • Red traffic light, if incremental margin is lower than 1

    • Yellow traffic light, if incremental margin is higher than 1 and lower than 10

    • Green traffic light, if incremental margin is higher than 10

  • Return on Investment (4TPM9594)

    This alert shows the return on investment (ROI) that a trade promotion can generate.

    Calculation: (Uplift Quantity (0UPLI_QTY) ÷ Billing Quantity (0BILL_QTY)) x (Net Revenue (0COPANETRV) ÷ Budget (0BUDGET))

    The higher the value of this ratio, the better. The following traffic lights are displayed:

    • Red traffic light, if ROI is lower than 1

    • Yellow traffic light, if ROI is higher than 1 and lower than 5

    • Green traffic light, if ROI is higher than 5

  • Uplift Ratio (4TPM9592)

    This alert shows the ratio of uplift quantity to base quantity. This ratio gives you an idea of the effect the planned trade promotion can have on sales.

    Calculation: Uplift Ratio = Uplift Quantity (0UPLI_QTY) ÷ (Billing Quantity (0BILL_QTY) – Uplift Quantity (0UPLI_QTY))

    The higher the value of this ratio, the better. The following traffic lights are displayed:

    • Red traffic light, if uplift ratio is lower than 0.01

    • Yellow traffic light, if uplift ratio is higher than 0.01 and lower than 0.10

    • Green traffic light, if uplift ratio is higher than 0.10

Activities

You assign these predefined alerts in Customizing for Customer Relationship Management under Start of the navigation path Trade Promotion Management Next navigation step Key Figure Planning Next navigation step Define Planning Profile Groups Next navigation step Assignment of Traffic Lights End of the navigation path.