In APO Demand Planning, you can plan promotions or other special events separately from the rest of your forecast. Use Promotion Planning to record either one-time events or repeated events such as quarterly advertising campaigns. Other examples of promotions are trade fairs, trade discounts, dealer allowances, product displays, coupons, contests, free-standing inserts, as well as non-sales-related events such as competitors' activities, market intelligence, upward/downward economic trends, hurricanes, and tornados.
The advantages of planning promotions separately are:
· You have the ability to compare the unpromoted forecast with the promoted forecast.
· You have the ability to correct sales history by deducting from it past promotions, thus obtaining unpromoted historical data for the baseline forecast.
· The processes of baseline forecasting and promotion planning can be kept completely separate. For example, the sales force might do an initial forecast, which is uploaded from Excel spreadsheets, while marketing is responsible for promotion planning.
· In Administration of Demand Planning, you have created a planning area containing the following key figures:
¡ Baseline forecast
¡ Promotion plan
The promotions are stored in the promotion key figure. If you define a promotion as a percentage, the system converts it into an absolute number before storing it.
· If you wish to see the promotion key figure in interactive demand planning, you have created in a planning book a data view that contains a row for the promotion key figures. It is advisable to also have a row and key figure for the baseline forecast.
· If you wish to access promotion planning through interactive demand planning, you selected the Promotion view when creating the planning book.
· You have defined the “lowest level of detail” or promotion level at which promotions are saved by choosing from the SAP Easy Access menu Demand Planning ® Planning ®Promotion ® Maintain Promotion Key Figures. In the promotion definition the lowest level is the furthest characteristic to the right. You see the promotion definition in the promotion planning table.
· You have defined any promotion bases that you wish to use.
· You have created any cannibalization groups that you wish to use.
· You have created any promotion attribute types that you wish to use.
· If you wish to see the total of the baseline forecast and the promotion forecast in interactive demand planning, you have written a macro that adds together these two key figures and displays the result in a third row, which you determine yourself.
· You have decided whether you will release the promotion plan and the baseline demand plan to Supply Network Planning separately or together. If you wish to release them together, you have defined a key figure and a macro for this purpose and have included them in the data view.
If you want to release separately, you must release the promotion to a different category than the baseline forecast. When customizing the SNP planning area you must assign a key figure to the additional category.
The following steps describe one possible way to implement the promotion planning process.
1. The demand planner creates the baseline forecast using mass processing.
2. The demand planner checks the forecast results in interactive demand planning.
3. In promotion planning, promotions are created: for example, marketing's promotional calendars, trade promotions, and knowledge about the decline of a competitor are all applied to the sales key figure. Promotion planning is accessed through interactive demand planning.
4. In interactive forecasting, the demand planner views the impact of all planned promotions on total forecasted sales and makes the final adjustments to the demand plan.
5. The demand plan (the sum of the baseline forecast, the promotion plan and the final adjustments) is released to SNP.
6. The constrained SNP plan is passed back to Demand Planning.
7. The accuracy of the forecast is checked against actual data.