Why implement a trade spend software solution? You’re getting along ok today, right? Well, the savings are probably more substantial than you imagined.
We’ve researched customer performance and evaluated data over time. Blacksmith’s trade promotion management (TPM) application delivers a compelling ROI, ranging from 7% – 17%. As you go through the software evaluation process, we commit to reviewing your financials and honing in on your specific ROI, influenced by the dynamics of your business.
Take a look at the potential financial wins in our savings range table below. The table outlines low end savings for annual trade spend of $10M. Even with a 50% realization of the low end estimate, savings can total $335k.
What could your business do with $700,000?
Low End Savings
|Annual trade funds efficiency opportunity||7% – 17%||$700k||$335k|
|Recollection of deviated pricing (POD) claim variance||3% – 5%||$300k||$150k|
|Recapture of ineligible discounted business from earned income (net $)||2% – 6%||$200k||$100k|
|Identify and control non-performing events with poor volume correlation||1%||$100k||$50k|
|Reduction of manual process errors and intuition-based economic decisions||1% – 5%||$100k||$50k|
REAL CUSTOMER SUCCESS STORIES FROM BLACKSMITH APPLICATIONS:
A manufacturer who is top 4 in their category saves about $4 million annually, driven by eliminating and recapturing pricing deviations, increased accuracy of freight components for pricing, reducing unauthorized deductions that must be written off and savings on systems investment and maintenance. In addition, their deduction balance was 80% less one year after going live.
➥ One of the largest CPG companies saves more than $1 million annually due to more comprehensive claim validation, elimination of double-dipping and recollection of national account volumes from shelter payments.
➥ A CPG company saves 5% of its gross trade budget annually, driven by improved decision-making.
➥ A frozen goods manufacturer saves $1.5 million annually from improved collection of invalid deductions, $200,000 annually from eliminating inefficiencies and $200,000 annually from reduced transaction costs.
➥ A manufacturer who is consistently among Sysco’s Top 5 suppliers saves $300,000 annually due to more efficient broker processes and $425,000 due to eliminating below market pricing.
➥ A packaging manufacturer who is top 5 in their category and a top Sysco supplier reduced spending by more than $1.5 million annually through better gross-to-net calculations and saves $300,000 annually through administrative savings from the efficient TPM process.
➥ A leading manufacturer reduced claims processing headcount by 62%.
➥ A foodservice disposables manufacturer saves $300,000+ annually by netting out ineligible contract and bid pricing volumes from shelter payments.
NOTE: The table above shows low range estimates for a business with $10M in annual trade spend.
If you’re interested in talking about the potential savings for your business, contact us to start the conversation.