Could your trade funding be managed more efficiently?

Stephan Butscher and Javier Christie

Stephan Butscher and Javier Christie, from Simon-Kucher & Partners, argue here that consumer goods companies use their customer trade funding (deals, discounts, overriders, trade promotions, rebates etc.) to do too much.

Could your trade funding be managed more efficiently?

Stephan Butscher and Javier Christie

Consumer goods companies use their customer trade funding to do too much. As a result these funds have ballooned, with little understanding of the details behind them. Once looked on as a tactical tool, they are increasingly expected to deliver the same profit effects as cost-cutting and efficiency drives. Software systems in isolation are not the answer. The solution is an integrated view of trade funding.

Many consumer goods manufacturers have in the past decade transformed themselves, successfully navigating their way through the various challenges...

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