As organizations begin modernizing their ERPs through upgrades to systems like SAP, they often choose to transform their Trade Promotion System (TPM) systems during the same time. This approach is typically driven by variables such as vendor support for new systems or contracts tied to fiscal end. TPM systems are tied closely to ERP systems, and end users often are cross-functional between them.  

While performing these implementations simultaneously may seem like an optimized strategy, doing so can often introduce unnecessary risk to project timelines and to the people who rely on these systems every day – the end users. This is because the ERP is like the foundation of a home, and TPM systems rely on stable master data, standardized processes, and harmonized integrations to build a functioning ecosystem. 

By diving deeper into the risks of these individual processes, we can begin to understand why ERP and TPM systems should be implemented sequentially instead of simultaneously. 

Understanding Why ERP Implementations Can Often Be Volatile 

The process of an ERP implementation is volatile, often requiring adjustments throughout the organization and agility from integration teams. While these changes are expected, they can create challenges for systems that depend on ERP data and processes, including TPM. 

When the ERP foundation is still evolving, TPM integrations become more difficult to configure, test, and validate. Changes to financial processes or master data can ripple through the TPM implementation, increasing the likelihood of rework and delaying key project milestones.  

A successful ERP implementation establishes the foundation that TPM depends on, including:  

• Harmonized system processes 
• A financial model with well-defined rules 
• Standardization across the organization 
• Stable master data 
• Completed data transformations 

A Strong ERP Foundation Leads to a Well-Functioning TPM System 

Successful TPM integrations depend on a stable ERP foundation and consistent business processes. Without that foundation, organizations increase the risk of misconfigured settlements, inaccurate accrual postings, or inefficient claims/deductions process. By performing a TPM implementation while ERP processes are still changing, businesses face risks of missed go-live dates, scope creep, and system misalignment, creating additional work for business users after go-live.  

Before deploying TPM, organizations should have: 

• Clean, aligned master data structures (customer hierarchies, product hierarchies, etc.) 
• Stable financial structures (order-to-cash flows, GL structures, etc.) 
• Defined user processes and governance  

How TPM Preparation Can be Introduced to the ERP Implementation Process 

Implementing ERP and TPM simultaneously is like building the house and the foundation at the same time. Stability and preparedness are key factors to success for any implementations, and while the foundation needs to come first, organizations can use the ERP implementation as an opportunity to complete TPM preparation activities. This allows organizations to better understand where their current system has gaps in process and build a roadmap for the future state.  

Since ERP implementations have major impacts on an organization’s business process, this is the perfect time to strategize and understand what TPM software will be a best fit in the new business ecosystem. These activities will not only lay the groundwork for the subsequent TPM implementation but will also assist in defining processes within the new ERP. 

Goals of the TPM preparation process include: 

• Defining future-state trade processes and policies 
• Standardizing master data objects and governance 
• Creating an integration blueprint and data mapping 
• Designing a reporting/ROI measurement approach 

Completing this work during the ERP program reduces implementation risk later on and gives organizations a clearer roadmap for successful TPM deployment. 

An Optimized Deployment Strategy: Dual TPM and ERP Implementations 

If your organization is planning to undergo a major transformation, these principles can help to avoid costly mistakes and prevent delays in deployment. While it may seem efficient to run these two major deployments side by side, establishing the core ERP foundation first is vital for a TPM launch to be successful. By using the ERP implementation period to undergo TPM readiness processes, organizations can also get a jump start on progress after their ERP go-live.  

Clarkston supports businesses of all sizes and maturities through dual TPM and ERP implementations, transformations and roadmap development. If your business is considering a change in your TPM and ERP systems, contact us for more information.  

Contributions from Nicole Borse 

AI-assisted: A human led the content and final approval of this piece, with AI used to support ideation, drafting, editing, summarization, or repurposing.