With the untimely passing of George Carlin earlier this week, there has been a lot of press about his infamous "Seven Words You Can't Say on Radio or Television" routine. It triggered something in my head…
An odd trigger, but a trigger nevertheless, bringing me to the realization that there are seven TPM words that the industry pays tribute to in TPM, and yet has done little to fully address in Trade Promotion Management:
1. Standardization: Who of us can claim to have a bulletproof contract management program and process?
2. Communication: Are our communications with our trading partners complete and automatic?
3. Data: Do we have unfettered access to accurate and timely data?
4. Verification: Do we have an efficient process in place to make certain all data matches with our agreement?
5. Reconsolidation: Is our process in place to accurately combine and reconcile all deals in a timely manner?
6. Settlement: Are we paying all deals within the current 14-day window demanded by many distribution partners, or does the mere act of paying promotions cost us more than they are worth?
7. Analytics: Do we have them? Do we use them?
It’s a familiar song with a very familiar refrain, isn’t it?
Take a look at YOUR TPM system, and ask yourself the questions posed above. And based on current statistics, there are a lot of you out there who cannot answer those questions honestly. So, if the answer to any of these is “no” or “gee, I don’t know” then get engaged and fix it! Best practices for each of these steps have been discussed and analyzed ad infinitum; and there are “counselors” and “providers” in the channel who can help. A great business mind once said, “It takes a big man to realize that he could do more with the help of others than he could accomplish on his own.”
If you aren’t already on edge with margins going down and raw materials going up, then you simply aren’t paying attention. Make a beeline for the lowest hanging “expense drain” fruit available: your TPM process, and make it right. Or someone else will do it for you; and I guarantee you won’t like THAT solution…
“There you go…giving a f*ck when it ain’t your turn to give a f*ck.” George Carlin