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5 good reasons to equip yourself with a deferred commercial agreement management solution without delay

  • Tue, 06/01/2021 - 09:03

The management of deferred commercial agreements, or rear margins, is a key sector for steering the company's profitability. Competition between brands requires a very good approach to the sales price level of products and to control the financial impacts of agreements negotiated with retailers. Are you sure to have all the cards in your hands to monitor your agreements effectively? Discover the five good reasons to equip yourself with a Trade Promotion Management solution, like A3 TPM. 

Take back control of your deferred commercial agreements 

Up to 40% of invoiced sales can be swallowed up by rear margins. That's how critical rear margin monitoring is to profitability. Of course, this type of expense is unavoidable, especially when it comes to selling products via mass distribution in France. The omnipresent competition requires to participate actively in the commercial operations organized by all the retailers (leaflets, advertising, store animation, New Advertising Instruments...), and which contribute directly to the sale of your products. Doesn't such an expense justify a dedicated tool? 

Secure the follow-up of agreements 

Many companies use Excel files to manage their agreements with their retailers. However, spreadsheets have major drawbacks: multiple files, risk of losing data - even files -, manual errors, miscalculations, non-collaborative nature, difficulty of implementation in the context of teleworking or impossible versioning.   

With a dedicated deferred commercial agreement management solution, agreements are centralized, and you can access current or past agreements anywhere, anytime. Collaboration is smoother between departments and access to information is immediate. Automated calculations and no re-keying reduce the likelihood of errors in an environment where agreements - and therefore calculations - are increasingly complex.

Follow up on commitments with serenity 

One of the most important points of attention is the ability to reliably calculate the amounts to be paid to retailers. What could be worse than receiving requests for credit notes without being 100% certain that they are the right amounts? This can lead to significant cash flow differences. A deferred commercial payment management solution checks the validity of credit memos for you. This way, you can be sure that you have paid the right amount and that you have not paid the same business transaction more than once. You can see in real time the impact on the off-invoice conditions, allowing you to anticipate your payments.  

Many are the commitments made by manufacturers. Many are also the hours spent by the employees in charge of the follow-up of the agreements. By equipping yourself with a deferred commercial agreement management solution, you can justify the sales lines on each agreement or variant in one click, which has the direct effect of reducing disputes with your customers. At any time, you are able to know the exact status of your situation, agreement by agreement or in total.

Anticipate and control expenses 

The A3 TPM solution offers payment schedules for down payments. Don't wait for your customers to send you reminders of their down payments, but instead establish a real partnership. The NIP (New Advertising Instruments) operations are no longer a management chore for your teams. You can also adjust your provisions according to the performance of your operations in previous years. Your provisions are automatically adjusted according to the sales and payments made. A3 TPM also allows you to prepare your budgets for the coming year with simulation agreements. In short, you remain in control of your payments thanks to the monitoring of provisions, payments made and outstanding payments.  

Measure commercial profitability while monitoring your operating account 3 net 

Knowing the netnetnet price per customer or per item is often a headache for manufacturers. And what about the time spent on negotiating your agreements compared to what they bring you? A deferred ccommercial agreement management platform offers real visibility on the profitability of commercial actions. A solution like A3 TPM allows you to budget your agreements and receive an alert when you exceed your budget or to edit or consult your contracts online to provide your sales representatives with clear follow-up information to use during meetings with their customers.     

 

As you can see, a deferred commercial agreement management solution facilitates the daily life of financial departments. Note that the benefits of such a solution are also noted by the sales, management control and information system management teams. The A3 TPM solution marketed by AGENA3000 is suitable for all types of business sectors, as long as agreements with distribution networks have been concluded. Would you like to know more about A3 TPM? Ask to be contacted by an expert.

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