CPG Manufacturers are Adding Solutions, Generative AI and Optimization to Evaluate Inflation Impact, Bolster Revenue Management, and Set a Strategy for Growth the POI Report finds
WYKOFF, N.J., Sept. 25, 2023 /PRNewswire-PRWeb/ -- The Promotion Optimization Institute (POI), the leading resource for marketing, trade and merchandising executives, today released its 2023 POI Enterprise Planning Vendor Panorama (EPx) report, an annual analysis and survey of 16 global solutions providers. The annual POI EPx study found that 79% of consumer products organizations are adding tools and analytical capabilities to support revenue management practices to improve promotion, pricing and assortment effectiveness as part of their growth and revenue strategy, a seven percent increase over 2022.
The POI analyzed 16 leading vendors and awarded POI best-in-class distinctions across 23 functional areas (including Trade Promotion Management, Revenue Growth Management (RGM), Optimization, Data, Artificial Intelligence, IBP/S&OP, Generative AI, Global Deployments, Headquarter Planning, Food Service, Advanced Analytics) that are helping retailers and consumer goods executives manage enterprise planning, trade promotions and revenue effectively. Boston Consulting Group, Decision Point, Enterra Solutions, Kantar XTEL, Salesforce, SAP, o9, TELUS, Buynomics, Periscope by McKinsey and more were recognized for their solutions.
Over the last year, numerous solution providers included in the POI report have come to market with exceptional Holistic Enterprise Planning and RGM capability advancements to support these dynamic times. New to the report this year are POI's six essential enterprise planning priorities to proactively prepare for growth during economic uncertainty.
"The pandemic, inflation and global instability have driven the need for automation, increased agility, and faster decision making to support retailer and consumer needs. With the economic shifts taking place, holistic enterprise planning and revenue growth optimization capabilities provide the ability to quickly ascertain the next best action. Agile, companies who deliver proactive insights, mutually profitable plans and enhance the customer experience for their retailers and ultimately consumers, will have a competitive edge," said Pam Brown, Chief Commercial Officer of the POI and author of the report.
The POI State of the Industry Survey revealed that 78% of companies continue to have data challenges with foundational data. In order to become closer to what consumers desire, gain data insights, and build this learning into your strategy and tactics, an organization must establish data ownership and cleansed, staged and harmonized data.
Currently 80%, an increase of 14% over 2022, of manufacturers look to advance how they approach their revenue management practice and how they optimize pricing & promotions and pack growth analysis. With increased focus on portfolio mix/assortment, advanced strategic Sales and Operations (S&OP)/Integrated Business Planning (IBP) & Joint Customer Business Planning functionality (JCBP), as well as new modeling approaches, advancing RGM capabilities can deliver manufacturers a competitive advantage.
In addition, the 2023 POI EPx Vendor Panorama includes end-to-end enterprise planning, revenue growth management, pricing, promotion and assortment optimization, headquarter capabilities, generative AI, IBP/S&OP, food service and data management, in addition to the historical TPx content covering trade promotion management (TPM), what-if scenarios and post-event ROI capabilities.
The Enterprise Planning (EPx) Vendor Panorama builds upon the research of the POI 2023 In-Store Retail Execution Vendor Panorama. The two panoramas are companion documents – the Retail Execution Panorama evaluates the in-store component of the promotion cycle, while the EPx Vendor Panorama focuses on end-to-end enterprise planning and revenue management. Both panoramas are designed to help POI members improve their ability to manage planning and execution, trade promotions, pricing, enhance trading partner relationships, and drive profitable growth.
Key Strategic Insights from the 2023 POI Enterprise Planning (EPx) Vendor Panorama include:
- Seventy-five percent of POI survey respondents agree that their companies are struggling to have retailer-aligned promotions executed at the store level.
- Seventy-eight percent of companies are struggling to manage enterprise modern spend including traditional and omni-channel trade. When cross functional teams utilize an end-to-end planning ecosystem, business units become connected and the outcome is effective enterprise planning with visibility and efficiencies gained across the organization.
- Forty-five percent of manufacturers are looking to invest in trade promotion management (TPM) systems, and 39% are investing in a holistic tool that includes TPM, ROI and what-if scenario planning. The largest change year over year is reflected with 43% of companies planning to implement RGM/TPO specific capabilities.
- Vendors are increasing the ability to deploy global implementations through one supplier by supporting parallel or sequential implementations for each region.
- The lack of connectivity between Trade Promotion Systems and Retail Execution Systems continues to severely impact execution and revenue gains. Seventy percent of TPM and RetX systems are not integrated and organizations are losing the ability to monitor in-flight promotion effectiveness.
POI EPx Recommendations include:
- Enable all enterprise and TPx planning, RGM, Integrated Business Planning and trade promotion related processes with technology. The POI survey found sixty-six percent respondents feel the planning process is burdensome for the organization.
- Work cross functionally to understand your organization's pain points, so your core team can determine and align on "what you are trying to solve." Only then can a decision be made regarding the type of capabilities and solutions to enable your goals.
- Don't underestimate the need for change transformation. The POI Member Portal has historical summit presentations that contain peer set change management practices as well as presentations.
A breakdown of all of POI's recommendations are in the 2023 EPx Vendor Panorama.
"Vendor capabilities are advancing organizational ability to respond quickly to economic conditions, and retail and consumer needs with the right offerings, at the right time. We are impressed with the innovative solution provider advancements that support manufacturer and retailer collaboration and grow sustainable profit in challenging times. The POI is delivering expanded insights to our members through global research, POI member share groups, a manufacturer and solution provider advisory, POI CPG Leadership Council, and by connecting through live/hybrid virtual summits," said Michael Kantor, CEO and Founder, POI.
About the Promotion Optimization Institute
POI brings together manufacturers, retailers, solution providers, analysts, academics and other industry leaders. Members of the POI share cross-functional best practices in both structured and informal settings. Additionally, members benefit through our industry alliances, the Certified Collaborative Marketer (CCM) curriculum and certification, industry leadership virtual events, and POI advisory. POI aims to instill a financial metrics and research-based discipline not typically found with other trade groups.
POI is based in Ramsey, New Jersey. To learn more about the POI, including how to participate in research, register to attend or sponsor virtual and hybrid events, engage with POI advisory, or how to connect with leaders on the CCM, visit http://www.poinstitute.com/ or email Mkantor (at) poinstitute (dot) com or Pbrown (at)poinstitute (dot) com
Media Contact
Theresa Smith, The Promotion Optimization Institute, 1 818-704-8481, [email protected], https://poinstitute.com/
SOURCE The Promotion Optimization Institute
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