In this article we will explain the concept of cannibalization, what is its effect on promotions and how SAP SNC allows us to manage it.

Cannibalization is the impact that a new or promoted product has on sales and reductions of existing related products. An example of this is when in the company there are products with similar characteristics between them and a promotion is created for one of them (for example: item 1 in the graphic), the effect of cannibalization is seen when the customers start to prefer to buy the promoted product instead of the ones they usually buy.

Cannibalization has an impact on forecasts and promoted sales, making the future more unpredictable. To manage this particularity, the Supply Network Collaboration (SNC) module has the “Promotion Cannibalization” feature.

The system calculates the effect of cannibalization when:

  • A new promotion is created
  • An existing promotion has been updated in the SAP SNC Web UI or via a “ProductDemandInfluencingEventNotification” XML message.
  • Each time a promotion is selected to be updated during the Planning Service Manager (PSM) run.




To achieve the effect of cannibalization, at least two products impacting each other in the called cannibalization group must be related. The cannibalization factor must be assigned to the products.

If a promotion is created for a product that is in a cannibalization group, the forecasts for the other products in the group are reduced based on the cannibalization factors.



A 5% discount increases the sales of bottles of shampoo bottles to rosemary of 30,000 units, dropping bottles of 250 milliliters of 3,000 units and sales of bottles from 500 milliliters to 5,000 units.

For each product insert a factor of cannibalization. This factor is a positive or negative number that represents the amount by which the sales of the product are positively or negatively affected by the promotion.


Cannibalization Factor

liters bottles 30
250 milliliter bottles -3
500 milliliter bottles -5


Carlos Vera  – Linkedin