Get Started with Claims
Learning Objectives
After completing this unit, you’ll be able to:
- Explain the basics of claims and claims management.
- Identify the types of claims in Consumer Goods Cloud.
Before You Start
Before you start this module, consider completing the following recommended content.
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Deep Dive Into Promotions for Consumer Goods Cloud
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Funds Administration in Trade Promotion Management
Claims and Claims Management
In a trade promotion management (TPM) system, claims represent the value that retailers expect as compensation for running promotions using tactics.
Running a promotion is a key component of the TPM process. Manufacturers in the consumer goods (CG) industry run promotions at retail stores to boost product sales. Each promotion includes various tactics that are valuable to the retailer. Some examples of tactics are:
- Reduction in the price of a product
- Optimal in-store placement of the product
- Inclusion of the product in a promotional flyer
Based on the results of executing such promotions, retailers are entitled to compensation. This compensation appears in a TPM system as a claim related to a tactic.
After a promotion is live and results start coming in, the retailers send a claim request to the manufacturers for the remuneration of tactic costs. Because the promotion costs often differ between planning and execution, TPM enables assigning multiple tactics to a claim or accepting a claim for the partial payment of a tactic. In case of partial payment, manufacturers later accept another claim request to settle the unpaid balance.
There are several ways to pay retailers, and they’re all handled through claims management. Claims management is a core process in Salesforce TPM with CG Cloud. It’s the process of settlement between retailers and manufacturers when manufacturers pay the retailers to cover the promotion costs.
Claims are identified in two different ways in CG Cloud: manual and interfaced. Usually, manual claims are related to credit memos or check requests, whereas interfaced claims are of the deduction type. You learn these concepts in detail later in the module. Interfaced claims are sourced from the financials of an enterprise resource planning (ERP) system. On the other hand, manual claims are created in CG Cloud by a finance manager (FM) or a key account manager (KAM) working for the manufacturer.
After creating the claims, KAMs evaluate each claim request to decide whether the claim is justified and approve the claim request. FMs help KAMs with payments for approved claim requests.
The Claim Commanders
It’s beginning to look a lot like Christmas at Alpine Group, a leading nutrition and beverage manufacturer in the USA. Its hardworking team has run successful product promotions all through the year, breaking all sales records and exceeding revenue targets by a healthy margin. This is made possible by the passion and diligence of a few standout performers.
Drum roll, please! Introducing Gustavo De Luca, the brilliant key account manager (KAM) at Alpine Group. He manages the sales and promotions for Alpine Group products at the Northern Trail Outfitters (NTO) stores, a nationwide retail chain in the USA. Gustavo also manages the day-to-day retail activities that his team of field sales reps performs to ensure sales optimization and promotional compliance.
Working closely with Gustavo is another iconic performer, finance manager (FM) Carol Lee, who’s responsible for managing funds and invoices, allocating budgets, and resolving deductions at Alpine Group.
The two of them make a great team. They’ve planned, funded, and executed multiple successful promotions at NTO stores. As a result, some of Alpine Group’s nutrition bars and energy drinks are bestsellers in the market today.
Gustavo and Carol have seen great results, and their hearts are filled with gratitude as they approach the year-end. It’s time for them to suitably reward and compensate the customer partners who’ve worked hard to successfully execute promotional tactics at their stores. Gustavo starts with retailers.
It’s time to review, validate, and settle all the pending claim requests that come in from the retailers. Gustavo jumps into CG Cloud and ensures the quick settlement of claims. He’s impressed with how quick and easy it is to resolve the claim requests with CG Cloud. When he’s done, he requests Carol to release the claims for the approved requests.
Gustavo also works closely with Fatima Daniels, the Salesforce admin at Alpine Group. Fatima helps Gustavo to manage claims and claim templates.
In this module, follow Gustavo as he explores claim types and their uses, sets up claim templates, and creates claims for NTO in CG Cloud.
Types of Claims
A claim template represents the different types of claims and outstanding debts that retailers can have. While some claim types are available out of the box in CG Cloud, you can also create your own using claim templates.
Here are the common claim types in CG Cloud.
Gustavo now understands how to work with the different types of claims in CG Cloud. He moves on to explore more about claims.
Next Steps
In this unit, Gustavo explored the basics of claims management and the different types of claims available in CG Cloud. In the next unit, follow him as he sets up claim templates and claim tactic funds.