Retail Collaboration Imperative

SUMMARY

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PITCH PERFECT: ORCHESTRATING
THE COLLABORATION IMPERATIVE

By Brad Shelton and Susan Viamari

CPG manufacturers and retailers understand the importance of collaboration, but it has historically been difficult to implement a consistent approach. Years of functional and vertical silos, limited views of data and power dynamics have impacted these relationships and their collective growth.

Advances in technology have made it easier to securely integrate data sets from retailers, CPG suppliers and third-parties to create transparent platforms that can identify win/win opportunities and customer-centric strategies. Companies that leverage this technology can access a singular view of market challenges and opportunities, and other information that together allows them to create more positive customer experiences, strengthen customer loyalty and grow customer lifetime value.

This report shares best practices on retailer/supplier collaboration, including how technology is driving this transformation, and features case studies on how brands and retailers are working together to grow their businesses. It also includes information on IRI Retail Collaborative Gateways and how participants in these programs outperform the market by up to four percentage points.

Highlights:

• When retailers and suppliers use collaboration technology platforms to achieve and maintain a more customer-centric view of the marketplace through a shared portal, both partners can more easily identify and implement process improvements to drive growth.

• Technology-enabled collaborative portals that link suppliers, distribution centers and the retail store create better alignment across purchase orders, shipments and inventory. This improves supply chain efficiencies and allows retailers to avoid out-of-stock and overstock situations.

• With advanced collaboration technology, retailers can combine their POS insights capabilities with their suppliers’ product development and marketing expertise to produce creative and curated assortments that resonate with their highest-value customers.

 

When selecting collaboration partners, retailers and suppliers must ask:
 

• What are the goals of the partnership?
• What are the key performance indicators against which progress will be measured?
• How will both partners focus on bringing the plan to life?

IRI’s approach to collaboration ensures that both partners achieve growth through process improvement, cost reduction, and revenue and margin enhancement.

 

 

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