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Set Up Trade Promotion Management
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            Long-Term Agreements

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            Long-Term Agreements

            A Long Term Agreement (LTA) is a contract between a manufacturer and a retailer over an extended period.

            Required Editions

            Available in: Lightning Experience

            Available in: Enterprise and Unlimited Editions where Consumer Goods Cloud is enabled

            Typically, LTAs are used to monitor non-promotion spends of an account (Account P&L). In Spend Planning Card (SPC), you can maintain LTA rates either per product and week or by entering a total value and then using the distribution logic. To include or exclude LTAs, use the Promotion Type filter in the Account Plan.

            You can use promotion templates to define long-term condition types. Use a calculation schema (LTA KPI Set) to help users define the volume for:

            • The predicted outcome of the LTA.
            • Spends on the Spend Rate Card.

            The system calculates LTA costs based on the entire retailer volume, for both promoted and non-promoted products. A manufacturer is contracted to supply products based on the agreement; however, the work of a retailer can vary. For example, including shelf space, positioning guarantees, reduction of invoice deductions, agreement to run a specified number of promotions per year, and so on.

             
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