Client Background
Our client, Florida Beverage, is a regional mid-market manufacturer in the non-alcoholic beverage sector with operations spanning grocery, convenience, foodservice, and e-commerce channels. The company manages over 400 SKUs and generates annual revenue exceeding $85 million. Seeking to enhance profitability and streamline promotional spending, the client aimed to modernize its trade promotion management (TPM) process.
Challenge
Florida Beverage faced multiple operational challenges that hindered its trade promotion performance:
- Fragmented promotion planning and inconsistent approval workflows led to delays and misaligned campaigns.
- Manual data handling between ERP and finance systems caused visibility gaps and reporting errors.
- High promotion waste—inefficient targeting and overlapping promotions diluted ROI and increased costs.
- Lack of real-time insights limited finance and trade teams from making data-driven promotional decisions.
- Significant manual effort was required from sales and trade teams for reconciliation and reporting.
Solution
We implemented a comprehensive Trade Promotion Management (TPM) platform integrated with Florida Beverage’s ERP system to automate, optimize, and analyze their promotion lifecycle.
Key components of the solution included:
- Centralized Promotion Catalog: Unified view of all active and historical promotions to eliminate overlaps.
- Automated Approval Workflows: Streamlined promotion review and sign-off processes, reducing cycle time.
- Data Integration: Seamless data feeds from ERP and POS systems enabled accurate and timely reporting.
- Scenario Modeling & Forecasting: Enabled the trade team to evaluate promotion effectiveness before execution.
- Custom KPI Dashboards: Delivered visibility into incremental ROI, contribution margin, and promo waste reduction.
The implementation followed a structured four-phase approach:
- Discovery & Quick Wins (0–30 days): Data audit and pilot setup for top-performing SKUs.
- Pilot & Integrations (30–90 days): ERP integration and initial workflow automation.
- Scale & SOPs (90–180 days): Organization-wide rollout and standard operating procedures.
- Optimization (180+ days): Continuous improvement and advanced forecasting.
Results
After 12 months of implementation, Florida Beverage achieved measurable business outcomes:
- Promotion waste reduced by 18 percentage points, improving promo effectiveness.
- Incremental revenue per $1 of promo spend increased by 15%.
- $2.18 million net annual benefit realized from contribution margin improvements and process efficiencies.
- 7.3x ROI within the first year of implementation.
- 3 FTEs worth of time saved annually through automation and better governance.
Client Quote
“Partnering with the TPM team helped us eliminate waste, focus investments on high-impact promotions, and unlock $2.18M in net annual benefit.”
— COO, Florida Beverage
“The platform automated approvals and saved our trade team hundreds of hours per year.”
— Head of Trade, Florida Beverage