Food companies nowadays have invested more and more resources in the marketing and promotion aspect involving lots of products, cost types, channels, regions, so resulting in complex management.

Based on years of implementation experience, Weaver has created a very unique marketing cost control solution through cooperation with many well-known enterprises in the industry.

一、Classification of Marketing & Promotion Cost

It's generally divided into three categories, promotion/advertising/pricing policy, and the explicit classification is determined by specific management demands.

(Classification of Marketing & Promotion Cost)

The promotion expense in the store is usually the biggest part of the whole expense. Therefore, the focus of management is how to make reasonable expenditure, for example, the price of different store, different time, different position, different size of mass display is different, which results in the difficulty of approval.

二、Budget Management

Budget management plays an important role in enterprise planning, coordination, incentive, control and evaluation. The enterprise can carry out comprehensive or specific budget management.

One client in the food service industry, its budget management has gone through three stages.

1.Initial stage: business unit-oriented, finance department supplemented and manual operation that lack effective control prior, during and after events;

2.Norming stage: the finance department participates in the management, establish rules and regulations, standardize the process, introduce the ERP system, implement the incremental budget, all of which help solve the problem of monitoring during the event and assessment after the event.

3.Development stage: improve the budget generation of promotion cost, introduce the professional cost and expense management system. The implementation of the proportional budget based on the sales performance contributes to the profit-oriented landing and the effective allocation of resources.

To really manage the marketing cost and expense, you must manage each cost application form, each expense reimbursement form and each expense account, so it's inevitable to adopt a set of professional cost and expense control system.

Weaver's cost and expense management system comprehensively solve the problem of marketing cost application, reimbursement and statement and forms a closed-loop management from marketing cost application to implementation, reimbursement, evaluation and statement.

Every colleague can query an accounting voucher to which link, why returning the voucher, the actual amount of reimbursement and how long each link to be approved.

In the past:

The efficiency of manual reimbursement or application approval is low. The branches always accused the business department of headquarters, the business department of headquarters accused the finance department, the finance department ... but we don't know which link has been held up for the longest time.

Now:

Check in the OA system, it is easy to pull out the list of each link processing time. The finance department regularly published which department, which one needs the longest processing time. Then the overall approval efficiency has been greatly improved.

三、Proportional Budget Based on the Sales Performance

The implementation of the proportional budget based on the sales performance contributes to the profit-oriented landing and the effective allocation of resources. The annual total marketing and promotion budget is not set at the beginning of the year, but the provision standard. The marketing costs equals to actual sales volume multiplies provision standard. Obviously, if the actual sales is 0, the available marketing cost is 0 too.

Of course, we need to consider some specific situations. Weaver needs to provide differentsolutions for different types of sales cost management, then Weaver has come up with a variety of control schemes and modes and applied these in different cost applications and reimbursement forms, so has achieved the effective landing of control strategy.

ontrol mode: ①no control ②strong control ③weak control

Control scheme: ①budget control ②revenue control ③contract control ④limit control

(管控方案和方式)

Based on each client control mode, Weaver utilizes the integration center interface to get through the ERP system, grasp the actual calculated revenue data in the ERP system, make reminding control in the application and reimbursement documents through the calculating formula between applied expenses and (excepted or actual) sales performance. So that the marketing director or financial staff can quickly obtain the approval basis and make approval decisions.

1. Cost application

Estimated the planned revenue, the ratio of cost and sales = applied expenses / planned revenue volume. If the ratio is lower than the company setting ratio, then approve; if higher than the ratio, the approver will handle it according to situation.

2. Actual reimbursement

The actual reimbursement = actual revenue volume (from financial system) x the ratio of cost and sales: when you apply for reimbursement, the system automatically takes the former form data into consideration.

Core: the ratio of expense and sales

The provision standard is set by the headquarters according to the region / product / category. Finance department of headquarters formulates the detailed provision standard draft on the basis of historical data, the company's development planning and brand development strategy, then approved by the general manager after the business discussions. The maintenance of the standard is the responsibility of the headquarters finance department. Each branch only has the right to use and make suggestions.

The adjustment of standard:

Two way: （1）regular adjustment: once a month；（2）random adjustment: depends on situation

四、Value Analysis

Weaver cost and expense management schemes help enterprises to achieve the personalized cost and expense management, improve the timeliness and rationality of expenditure and the management level to upgrade the cost control mode. So that each expense is more transparent, marketing process more standard and the internal control more professional with informatization. Finally, help enterprises to implement the strategy of precise marketing management.