This improved visibility will leave them in a better place when it comes to planning future trade spend strategies and allocating budgets. If they choose the right platform, they can also exploit machine learning and artificial intelligence. This will not only allow them to gain deeper insight into their activities, but also generate well-founded, accurate forecasts for future actions. At Confido, we’re passionate about helping CPG brands scale every aspect of their business. Contact us today to see how you can improve your deduction management process. For instance, the team can drill down on operational deductions, to discover that over $3,000 has been deducted for ABC retailer due to short ships.
How We Work – Our Process
When I think back to my early days at Grupo Peñaflor, one of Argentina’s largest wine producers, I’m reminded of the financial missteps that can make or break a young brand. Budgeting for a CPG company is a delicate dance—balancing optimism about growth with realism about costs. And after nearly a decade of experience cpg accounting in FP&A and cost management, I’ve seen a lot of budgets go right. Financial statements for small business owners are essential tools for evaluating your company’s financial health, securing funding, and making informed strategic decisions. Remove the $3,000 in marketing costs, and your gross profit margin increases to 53%. If you net the entire trade spend against revenue, you’d end up with 50% gross profit margin.
The Value of Industry-Specific Financial Insights
It must allow you to bring together historic and up-to-the-minute data and give you the Accounts Payable Management tools to model it using the latest analytical techniques. Short-term or one-size-fits-all approaches to trade spend management in CPG are just not sustainable in the long term. Conversely, staff at CPG manufacturers may operate on an “every man for himself” basis. This means managing trade spend effectively is a challenge for CPG manufacturers. But it can deliver a substantial benefit for those organizations that get it right. As an experienced hand in the CPG industry, you understand the obstacles traditional trade independents face.
There’s no time like the present
Ideally, they should be able to adjust their strategies mid-flight, boosting budgets to build on success, or paring back spending when it is clear it is not paying dividends. The CPG experience council shares and develops best practices and data to foster competitive customer experiences that help brand owners, customers and consumers win. COVID, supply chain challenges, inflationary pressures and digital transformation can either worry you OR provide you the moment to see the world very differently. Unlocking new Customer Experience ways of working to truly understand and improve the experience for the thousands upon thousands of end B2B customers. Those who are the very last people to touch your product before the consumer purchase.
If you have questions about your trade spend approach or need some support with your financial operations, we’re happy to chat. By putting the right processes and practices in place, you can empower cross-functional teams and departments to work bookkeeping together across your organization to proactively oversee trade spend. This mountain of information can create a challenge for deduction teams tasked with sorting and validating the data. This activity can be extremely time-consuming and may include filtering hundreds of line items to extract meaningful financial intelligence for sales and finance teams. In terms of disputing deductions, it’s important be both diligent and timely.
