In the early stages of the relationship, retailers and suppliers should work together to develop a set of key performance indicators (KPIs) based. But, they can't do it alone; the relationship between retailers and suppliers must change from one based primarily on price and product negotiation to one that is. Abstract: Aims to extend the individual analysis of one supply sector to that of another, thereby permitting a more detailed examination, not only of the bilateral .
In other words, retailers and their suppliers must change the way they operate, or face the fate of bygone companies that were unable to cope with prevailing forces.
The Case for Supplier Enablement: The time has come for retailers and suppliers to pivot from transactional interactions toward more collaborative partnerships.
To sharpen — or regain — their competitive edge, retailers across multiple categories are launching initiatives to adapt to the changing landscape. This new dynamic may include sharing information to enable better, faster decisions about how to best meet consumer demands.
The New RetailerSupplier Relationship: Enabling Sustainable, Profitable Growth
And it could mean investment in new capabilities that can serve the interests of both companies, including: Consumer and market insights and analysis Agile product and experience innovation Accurate merchandise transitions and expedited speed to market Flexible supply chain fulfillment The time has come to pivot from transactional interactions toward more collaborative partnerships.
By pursuing rapid innovation and consumer satisfaction together, both retailers and suppliers will be better equipped to compete and win. In that time, we have identified four key areas of capability that retailers need most from their suppliers. Suppliers can compare this information with their current capabilities to identify the areas of greatest opportunity and make targeted investments for maximum supplier and retailer return.
At the same time, a faucet supplier has already gathered consumer insights to ensure that they offer the most compelling array of products. Working together, both companies can use their information and insights to achieve immediate goals.
Additionally, the supplier can create a well-informed product development pipeline, leading the next wave of bathroom trends and consumer interests. Suppliers gathering customer insights should ask themselves several key questions, including: What customer segment is the most valuable to me?
Collaboration Becomes Key To Success For Retailers And Suppliers - Retail TouchPoints
How do we target them? What needs to our customers have now and in the future? Using a combination of primary and secondary research, suppliers can gain a comprehensive understanding of their customers — who they are, where they shop, how they shop and what drives their decisions.
This information then can be shared with their retail partners to create a better shopping experience and determine product evolutions. North Highland recently supported a consumer insights collaboration between a Fortune retailer and a large CPG manufacturer, which aimed to increase revenue from a strategic retail customer segment.
Armed with these insights, the retailer and supplier teamed up to launch new product concepts and redesign elements of the in-store experience.
The New Retailer/Supplier Relationship: Enabling Sustainable, Profitable Growth
A true win-win for both. In an ideal world, retail merchants have eyes on the performance of every SKU in every market. But such a close watch is not always feasible, especially for national retail organizations.
This is where a strategic supplier relationship becomes crucial. But for some organizations, creating a joint go-to-market strategy is easier said than done.
These retailers and suppliers need to undergo a cultural change that starts from the C-level and trickles down through the rest of the organization.
Define success up front: Identify the goals for the partnership; Ensure collaboration extends across both organizations: Define performance metrics that need to be captured to determine success; Test, pilot, succeed and scale: Work together to test new tactics and strategies.Accenture's Managed Collaboration Services for Retailers and Suppliers
Suppliers Across Categories Ramp Up Collaboration Efforts Cosmetics brand Maybelline relies on its retail partners to engage customers and sell its vast line of products. Because shopper tastes and preferences vary from state to state, or even city to city, Maybelline needs to keep a constant pulse on promotion and sales activity.
They need our brand to drive sales because it will drive category growth for them.
A division of The Hillman Group, H. As these multi-logistics formats are becoming more popular among consumers, retailers need to ensure these offerings are price and time sensitive. The availability of the product, timeliness, freight costs, margins and the price point of the product, while determine the best way to get products to customers. Businesses can only reach true excellence, however, if they collaborate throughout the entire customer journey.