- If your organization employs promotions to distributors, retailers, or the end-consumer then you should already have a well-defined set of promotions, schedules, and rules.
- Promotion effectiveness can be deduced to some degree from the later evaluation of demand and subsequent fulfillment. However, more accuracy can be gained with a tracking/confirmation method (DSM = Deduction and Settlement Management).
- In the case of DSM there needs to be a defined mechanism for customers (corporate or consumer) to provide proof/feedback on the number of promotions that have been taken advantage of. The element of proof through purchase verification both reduces fraud and provides timely and accurate information on the effect of promotions.
- There is a time offset between when a promotion becomes live for the customer and when production and/or shipping needs to be ramped up to meet the expected demand.
- The combination of tracking promotions, deductions & settlement, and the forecast "lift" affects on the forecast are sufficiently complex that a well defined model can not only improve the process, it can be the mechanism that makes it entirely viable in the first place.
