Manufacturers of consumer products and packaged goods (CPG) often use trade funds to influence retailers as well as collaborate within existing marketing programs responsible for shaping the behavior of the consumers. Off course, the average consumer is oblivious to this, but special pricing, product placing, in-store promotion or bundling are funded, almost always, by the respective manufacturer.

Today, trade spending accounts for more than 15% of the total revenues that CP manufacturing records. This percentage is on the rise. As a result, the sheer spending volume has increased drastically and the processes are now extremely problematic to manage and frustratingly complex.

This comes at the backdrop of the re-emergence of store brands, increasing regulatory issues, expensive and complex demand data and a growing marketing mix, all further complicating the entire process. Not to mention the divergent goals between retailers and suppliers and an apparent deterioration in mutual cooperation. The result: the creation of a big, unmanageable problem called Trade Promotions Management.

Reluctance to embrace new technologies

Today’s business intelligence is revolutionizing the way we do business. That is why it is not overreaching to expect the improvements recorded in this front, plus the technological advancements thereof be used by many corporations to automate their operations as a way of solving this problem.

In fact, predictive analytics, which many companies can incorporate into their processes, is bringing new insights that were too lofty to attain just a few years ago. Many industry watchers believe using these two can help solve the Trade Promotions Management (TPM) problem.

Whether your business deals with custom engagement rings or building materials and construction equipment, one big consideration you ought to make is the use of packaged TPM software. As it stands right now, the adoption of this software is still low.

Available estimates show that over 60% of business organizations continue to use manual process together with PC spreadsheet applications like excel or their own custom software. Among the small-sized suppliers, packaged software use has even lower numbers. What brings this apparent disconnect?

Internal challenges with CPG manufacturers

Some of the first questions that would typically come to mind in answering this question is this: is the packaged TPM software in the market not advanced enough to effortlessly handle the increased complexity. The truth is that many of the programs in the market today can handle these processes, however complex they are. Look a little closer and you will discover that the problem is not with the existing technology, rather, it rests with the internal challenges that CPG manufacturers face.

Furthermore, there is a prevailing perception in price of TPM, with many entrepreneurs, especially small business people believing it is too expensive. Other believe it is too complex and will have a negligible effect on trade spending.

In any case, in an environment where everyone is holding on to their jobs with everything they’ve got, and status quo remains an awfully powerful force, it is not too hard to understand why only a small crop of CP executives would be willing to try new initiatives and embrace technologies that most can’t even touch.

Any company that has not set aside resources for asset tracking is failing big time and may be heading in a direction of reduced profits and rising costs. There now is enough evidence to conclude that asset tracking saves businesses both time and money.

With proper implementation protocols set, your business will be on its way to lowering its administrative costs, improving its customer care, streamlining business services and allowing you to expand your business with ease. The following are five reasons why Asset Tracking Software and Solutions must be part and parcel of your business process as you prepare for the marketplace of the future.

Maximizing the utilization of business assets

Asset tracking allows you to monitor your equipment to determine whether any of them is being underutilized. It gives you insights into the productivity rate of your equipment, ensuring that you can take steps towards making the most of every asset in your business process.

If you find idle assets, for example, you could decide to redeploy them or replace them with assets that can perform better. Additionally, you can use an asset’s historical data to do more accurate billing and plan better for the future.

Know the exact location of each of your business assets

Real-time asset tracking has now become quite commonplace in business systems. It lets you view the state and location of your business assets at any one time. This real-time monitoring is extremely effective in tracking down assets that may have been stolen or locating misplaced items. What’s more, you will be in a position to respond fast enough to issues related to your business assets, thereby preventing loss and damage.

Minimizing downtime through prudent maintenance

Through asset tracking software and solutions, you will gain insights into the usage and performance of your business assets. With this information, you can make better maintenance plans, reduce unplanned outages and keep the equipment within your business running reliably. Essentially, asset tracking solutions will allow you to adopt a predictive and preventive approach to servicing and maintaining your assets. Find out all benefits of asset tracking software.

Save time

Let’s face it: manual tracking of business assets is extremely time consuming. If you consider all the moving parts that you need to keep track of coupled with the unavoidable human errors, it is not hard to see why automated asset tracking makes perfect sense.

Increase safety

Using asset tracking software is a big step towards securing your assets and keeping your employees safe. And in an event when a member of staff responsible for certain assets cannot be reached, you can easily use asset tracking to know the exact location of those assets and their present status. This increases accountability which ultimately has a positive impact on the overall well being of your business.