MPG…On the Pulse
Best-in-Class Supplier-Retailer Engagement:
Staying Ahead when the Bar Keeps Moving
“Supplier, Buyer Relations Are Shifting Again as Pandemic Strains Ease,” cried a recent headline in the Wall Street Journal regarding the changing, but not surprising, retailer-supplier dynamic. As consumer trends, omnichannel technology, and market economics continue to evolve, retailers will continue to place higher expectations on suppliers. And, as the bar keeps rising, many suppliers are finding that achieving best-in-class engagement is its own strategic challenge for their organizations.
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Improving the retailer-supplier working relationship by identifying execution gaps may seem like nuts-and-bolts work, but it can be so much more when done right. It can bring greater collaboration for stronger joint business plan delivery. It can provide the deeper knowledge needed to figure out where to place your big bets. It can unearth win-win solutions and strategic intersections pointing to significant, new opportunities. And it can often provide a valuable peek under the tent at what retailers feel your competitors are doing extremely well.
Meaningful
Innovation
Visibility to innovation pipeline to allow for co-creating launch activation plans
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Strategic Omnichannel Leadership
Omnichannel insights linking ecommerce & B&M
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Sustainable Trusted Relationships
Competent, collaborative, nimble-minded talent able to drive supplier alignment to retailer strategies through cross-functional engagement
Driving Commercial
Thought Leadership
Mindset shift that not only focuses on shoppers but beyond (ie. white space opportunities, advanced tech, joint financial metrics)
Transparent with Supply Chain Disruption
Proactive and transparent communication that addresses root cause resolution
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Is your team keeping up with your retail partner’s expectations?
“You want to get a clear picture of what best-in-class supplier engagement looks like from their unique perspective at that particular moment in time – and frank feedback on what’s working and what could improve,” advises MPG Executive Vice President Jennifer Ceslak, EVP, Learning and Development, Strategy & Business Consulting, who often leads MPG’s proprietary Voice of Customer (VOC) work. She advises clients to periodically do a deep dive with key retailers in five critical areas: Meaningful Innovation, Strategic Omnichannel Leadership, Sustainable Trusted Relationships, Commercial Thought Leadership, and Supply Chain Transparency. Voice of Customer work can also be particularly helpful for:
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New commercial leaders who want to establish a baseline to measure against year over year
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Managers looking to drive a continuous rhythm of improvement as the organization moves toward its NorthStar
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Organizations that need to fix a broken relationship and address issues with an action plan. Most importantly, this process lets the supplier close the feedback loop, both communicating that they’ve heard the retailer’s expectations and setting mutual expectations
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Companies that have made significant strategic changes (e.g. new commercial terms, a new trade fund model, new category capability) and need to communicate and measure their impact
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We’ve found that having had front-line operational experience on both the manufacturer and retailer sides of the industry gives MPG the critical insights needed to dig deeper and ask the right questions during retailer interviews. Experience trumps scripted methods every time in uncovering opportunity,
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When looking to secure feedback from retailers, Jennifer cautions clients not to rely on surveys alone and look to engage retailers in 1:1 discussions. And make sure the group conducting the VOC interviews with retailers has a strong understanding of the retail landscape. “We’ve found that having had front-line operational experience on both the manufacturer and retailer sides of the industry gives MPG the critical insights needed to dig deeper and ask the right questions during retailer interviews. Experience trumps scripted methods every time in uncovering opportunity,” she explains.
That experience recently came into play for a large HBC client, she notes. Through Voice of Customer work, MPG identified the need to elevate the JBP process, as the company, given its size and scale, had an opportunity to better deliver against retailer expectations to achieve competitive advantage. The MPG team helped them build a customer-engagement framework and second-generation JBP, in concert with their customer segmentation. Customers were identified to participate at each level of the plan, and the client was provided with elevated engagement strategies. The result? The client team now has greater access and influence with several top-tier retailers, which is resulting in new, incremental business opportunities.
If you’d like to incorporate best-in-class practices to improve engagement with your retail partners, reach out to Jennifer Ceslak at Jennifer.ceslak@mpgllc.com / 267-566-2407.