The consumer packaged goods (CPG) industry is considered among the most competitive industries in the world. Regardless of whether you are a new and small business or a multi-national business, nearly every CPG business has to deal with how to manage promotional spending, deductions, and trade spending. This is where MarginWiz CPG comes in! MarginWiz offers smart, automated, and easy to use solutions that help businesses stop revenue leakage, recapture lost profit and regain control of their financial processes.
The Challenges in the CPG Industry
Before you learn about the value of MarginWiz CPG, it is important to be aware of the common challenges in consumer goods companies:
- High Trade Spend Costs — Promotions, discounts and retailer agreements consume an enormous amount of revenue. Without proper controls in place, they can take away from your margins.
- Complex Deductions — Retailers are notorious for issuing deductions for frivolous reasons, and managing this manually is burdensome.
- Revenue Leakage — Companies are leaving millions of dollars on the table through unclaimed chargebacks without proper visibility.
- Slow Dispute Resolution — Finance teams typically spend hours more collecting data, building evidence, and manually filing disputes.
- Lack of Automation — Most companies are still relying on spreadsheets making it nearly impossible to scale efficiently.
All of these challenges can impact growth and weaken a company’s overall financial health. That is the purpose of MarginWiz CPG — to assist businesses in managing those specific pain points.
What is MarginWiz CPG?
MarginWiz CPG is a new software tool developed by MarginWiz to promote deduction recovery and trade spend management. Automating dispute workflows, tracking promotions, and providing actionable insights to help finance, and sales teams make better financial spending decisions.
With automated systems in place, companies will be able to track every deduction, have all disputes evidence based, have accountability for every dollar, and take the heavy lifting off of finance teams and get back to focusing on growing the company instead of paperwork.
Key Features of MarginWiz CPG
- Automated Deduction Recovery
- The software will automatically identify invalid deductions and create claim packages for disputes. This saves time on manual work and speeds up recovery.
- Trade Spend Visibility
- The ability to get actionable view into businesses trade spending on promotions, and the profitablity of those trade spends.
- AI-Powered Dispute Management
- MarginWiz CPG uses artificial intelligence to ensure that every deduction is reviewed and any disputes are filed with the appropriate documentation.
- Easy Integration
- The software seamlessly integrates with ERP systems (SAP, Oracle, Netsuite) and ensures that all data is transferred appropriately.
- Real-Time Analytics
- Sales and finance leaders will be able to see and track deductions, disputes and recovery performance in real time.
- Improved Collaboration
- Sales, finance, and supply chain can collaborate with a single, unified integrated solution instead of multiple spreadsheets.
Benefits of Using MarginWiz CPG
MarginWiz CPG has many benefits that can’t be matched by just automation alone. Here are the primary benefits that businesses can realize:
- Higher Profit Margins — With Quick recoveries from invalid deductions companies could save millions of dollars a year.
- Faster Dispute Resolution — Standardized claim packages that are automated reduce the cycle time on dispute resolution.
- Smarter Promotions –The insight into trade spend being able to know when promotions have basically been ineffective, keeping only for profitable promotions.
- Scalability — As companies grow, so does MarginWiz CPG, able to automatically process thousands of claims with no problem.
- Better Retailer Relationships — More transparent processes create a better level of trust between CPG companies and their retailers.
Why MarginWiz CPG is Different
Many products exist today, but MarginWiz has created a product that really responds to the unique needs of CPG companies. And what makes MarginWiz CPG different is the deduction-first approach. It not only tracks deducts, but focuses on preventing the invalid deductions that can erode margins in real time.
That makes it so much more than a fiscal management tool; it is a profit protection software. Many top CPG companies are seeing significant improvement to profitability from it.
Real-Life Example
Think about a CPG company that ships to many large retailers in the U.S. Every month, this company will receive over 5,000 claims for deductions from retailers. Some of these claims may even be invalid. The process of manually working through these claims can take weeks. To top it off, they are often late to the remedying stage of the dispute process.
Since on-boarding MarginWiz CPG, the company is able to automate 80% of their deduction disputes. The system identifies claims that are invalid, and has the ability to attach all proper supporting documents automatically; submitting them in real-time! After a year, this company has reclaimed millions in lost revenue and is working more than 60% less on manual processes.
Future of Trade Spend with MarginWiz CPG
The CPG industry’s future will be shaped by automation, analytics, and AI for companies that still use outdated manual methods and don’t adapt this will be a tough time for profitability while those that use tools such as MarginWiz CPG will have opportunities for competitive advantages.
Conclusion
In the rapid product changing consumer goods market environment and with businesses not able to afford to lose dollars because of deductions and poorly managed trade spend, it is important to understand that traditional methods of operating are not enough as the agreements and promotions held by retailers become more complex.
Adopting sophisticated solutions like MarginWiz CPG is no longer a choice. It is a need. With automation, artificial intelligence and real-time analytics in one place, MarginWiz allows a company to take full control of their deductions process while simultaneously recovering lost profits and achieving their financial goals.
If you are in the CPG space and are looking for a better way to manage trade spend and deductions, consider MarginWiz CPG today. With its robust features and proven performance, this software could allow your company to achieve higher profit and sustainable business.
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