Goals of Consumer-Packaged Goods (CPG) Companies

Promotional strategies, particularly within the Consumer-Packaged Goods (CPG) sector, are typically aimed at achieving short-term goals due to their temporary nature. These goals often include increasing product sales, expanding market share, boosting brand awareness, driving foot traffic, and engaging in cross-promotions with vendors or business partners. Understanding the nuances of different promotional strategies and their intended outcomes is crucial for CPG companies looking to maximize the impact of their promotions.

Types of Promotions

Retailers utilize various promotional strategies tailored to specific products and business objectives. Common types of promotions include:

➡️ Temporary Discounts and Price Reductions

Offering a percentage or fixed amount of specific products to stimulate sales.

➡️ BOGO (Buy One, Get One) and Multi-Buy Offers

Encouraging bulk purchases by offering additional products for free.

➡️ Financing Options

Making high-ticket items more accessible by offering payment plans.

➡️ Rebates

Providing a financial incentive post-purchase to enhance customer satisfaction.

➡️ Free Samples and Contests

Leveraging the appeal of free goods to increase brand awareness and customer engagement.

➡️ Bundling

Offering related products at a reduced price to increase sales volume.

Challenges in Promotional Success

Despite their potential benefits, promotions present several challenges:

➡️ Variable Product Response

Not all products benefit equally from promotions; some incredibly premium items may see a decline in perceived value when offered at a discount.

➡️ Uncertain Uplift and ROI

Accurately predicting the increase in demand (uplift) and the return on investment (ROI) during a promotion period is difficult due to numerous influencing factors.

➡️ Inventory Management Issues

Effective promotion planning requires precise inventory management. Underestimating demand can lead to stockouts and dissatisfied customers while overestimating can result in excess inventory that may need further discounting.

➡️ Promotional Cannibalization

Discounts on certain items can inadvertently reduce the sales of similar, regularly priced products, leading to unsold inventory.

US, 2nd Largest Food & Beverages Company, has embarked on an innovative journey to enhance its operational efficiency and strategic decision-making within the UK Claims Deduction Management. This initiative meticulously evaluates SAP Signavio Process Intelligence, a leading edge in process mining technology. Ennuviz and SAP Signavio, in collaboration, aim to execute a Proof of Value (PoV) to thoroughly assess the technical prowess of SAP Signavio Process Intelligence. This evaluation centers on its ability to uncover, analyze, and provide insights into the current ("as-is") process flow and business operations related to Claims Deduction.

What is Process Mining?

Process mining leverages event logs to provide insights into how processes are executed. For Customer Service and IT Support Desk, this means the ability to optimize operations by identifying bottlenecks and inefficiencies, ultimately enhancing overall performance.

What is SAP Signavio Business Process Transformation Suite?

SAP Signavio Business Process Transformation offers a comprehensive suite of tools designed to optimize business processes efficiently and precisely. Central to this suite are robust solutions like SAP Signavio Process Insights and SAP Process Intelligence, which play a crucial role in uncovering actionable insights from complex data. SAP Signavio Process Insights enables businesses to swiftly identify inefficiencies and find potential improvements, delivering clear insights within 24 hours of implementation. This rapid feedback is vital for organizations aiming to streamline operations, enhance performance, and maximize ROI by addressing critical process weaknesses​​.

Further enhancing this transformation capability, SAP Process AI leverages artificial intelligence to provide advanced process automation and predictive analytics. Embedded seamlessly within the SAP Signavio solutions, SAP Process AI is designed to provide instant answers to process questions, uncover hidden issues, and deliver actionable improvement recommendations, all while being future-proofed with continuous learning. Critical capabilities of SAP Process AI include:

➡️ Process Recommender

Empower your organization with instant best practice recommendations. Access a database of 5,000 best practices from SAP to quickly move from initial process exploration to design, accelerating process model development without consulting heavy services.

➡️ Process Analyzer (Text to Insights)

Democratize process mining with natural language processing. Users of any skill level can ask questions and receive immediate, relevant insights from data, making informed decisions faster.

➡️Performance Indicator Recommender

This tool simplifies process monitoring with quick recommendations on relevant process performance indicators (PPIs). It links business problems, affected processes, and metrics, enabling a self-service approach to define an initial process monitoring framework.

As industries are reshaped by breakthroughs in Generative AI, SAP Signavio is at the forefront, leveraging Large Process Models (LPMs) to enhance its process transformation suite. LPMs extend the capabilities of large language models (LLMs) by applying SAP’s extensive process and industry insights to Business Process Management (BPM). This innovative approach shortens time-to-insights, accelerates time-to-adapt, and improves process monitoring, reinforcing SAP Signavio's commitment to delivering unparalleled value to its customers.

The Challenge: Limited Insights in Claim Deduction Process

Claims management teams in the Food & Beverages Company often face significant challenges, especially when dealing with claim backlogs and disputes with large distributors. These issues can strain financial health and operational efficiency.

Customers deduct AR amounts based on the promo conditions they agreed upon. Claims are created to document the fact and amount of deduction, and a claims team processes these Claims to confirm the deductions' correctness. If the deduction is not justified, the customer will claim this amount.

The deduction process tends to create a backlog of claims due to the bid volume and the long throughput time for individual claims. Also, there are no adequate reporting tools to analyze the process E2E.

Our Solution

🔷Claim Overview

The comprehensive dashboard equips the UK team to scrutinize KPIs, trends, and graphical representations, providing insights into present performance levels and pinpointing process bottlenecks. This facilitates a more profound investigation to uncover underlying issues and promptly implement corrective actions.

➡️ Value, Volume, and Aging

Categorized by reason for a comprehensive understanding of claims status.

➡️ Breakdown by Customer/Channel/Processing Team

Detailed insights into the value and volume for targeted improvement strategies.

➡️ Monthly Throughput Time vs. SLA Targets

Tracking efficiency in claim processing over time.

🔷Dispute Investigation

➡️ Trends in Dispute Resolution

Daily, weekly, and monthly analysis of disputes opened, resolved, and written off.

➡️ First Time Right (FTR) Ratio and Failure Reasons

Assessing the accuracy of initial claims processing and identifying common errors.

➡️ Value Realization Indicators

Focusing on cases with invalid balances, prolonged open cases, and throughput time trends for financial optimization.

🔷Discovery

Leverage SAP Signavio's built-in process exploration capabilities to integrate Customer Claims and CRM datasets. This integration aims to visualize the process flow and discern event, case, and cycle time variations. Further, refine the analysis by applying pre-established filters to segment the data for a more granular understanding.

🔷 Open Claims

This section's insights enable the UK team to examine KPIs, observe trends, and analyze charts specifically for Open Dispute claims. This empowers them to assess current operational effectiveness, identify process constraints, delve into the origins of these issues, and address them directly and efficiently.

🔷 Write Off Claims

This section's insights enable the UK team to examine KPIs, observe trends, and analyze charts specifically for Write-off Claims. This empowers them to assess current operational effectiveness, identify process constraints, delve into the origins of these issues, and address them directly and efficiently.

🔷 Comparison

Business users compare Current and previous Year dispute claims to analyze critical key performance indicators by volume and claim amounts and derive behavioral insights.

🔷 Export

Ability to export investigation results to perform integrity checks.

🔷 Success Criteria: Achieving Tangible Results

80% SLA Adherence

$38M Revenue was added to the cash flow two months earlier.

🔷 New Insights Provided

➡️ Price Difference” Reason Code was the major contributor to the SLA Breach

➡️ 40 Days wasted to update the Claim Status

➡️ 90 Days to determine the Manually Cleared Amount

Conclusion

Promotions are essential for Consumer-Packaged Goods (CPG) companies to achieve their strategic objectives. While traditional methods like discounting and bundling remain effective, the technology and tools for implementing these strategies have evolved, incorporating advanced solutions like SAP Signavio Process Intelligence for deeper insights. This evolution underscores the need to understand consumer behavior, optimize inventory management, and tackle challenges such as promotional cannibalization and unpredictable ROI. With advancements in process mining and data-driven insights, companies can refine their promotional tactics to boost sales and market share while improving operational efficiency and financial performance. For instance, the 2nd largest Food & Beverages company uses SAP Signavio to innovate its approach. It utilizes advanced analytics to identify hidden opportunities and optimize complex processes like Claims Deduction Management, leading to better business outcomes and sustainable growth.

Ennuviz takes these capabilities further with its prebuilt Claim Deduction Process Mining solution powered by SAP Signavio. This solution streamlines claims management by providing the following:

🔷 Enhanced Transparency

➡️Offers a comprehensive view of the claim deduction process, revealing bottlenecks and inefficiencies.

🔷 Data-Driven Insights

➡️This approach utilizes advanced analytics to identify the root causes of issues, such as SLA breaches, enabling precise improvements.

🔷 Automated Compliance

➡️ Ensures claims are processed according to agreed terms, reducing disputes and maintaining financial integrity.

🔷 Improved Financial Performance

➡️ Boosts cash flow by minimizing manual interventions and accelerating claim processing times.

Scalability and Ease of Use

Enables quick deployment with minimal disruption, allowing organizations to realize immediate value.

By leveraging Ennuviz's solution, companies can enhance operational efficiency, improve compliance, and drive financial gains, positioning themselves for long-term sustainable growth.

Are you ready to transform your topline sales process?

Partner with Ennuviz to explore how our claim deduction process mining solution can improve your cash flow and distributor experience.

Contact us today to schedule a demo and see our solution in action!