Follow our next blog series on Joint Business Planning for retailers & CPG manufacturers. Joint Business Planning, JBP, should take your retailer & supplier relationship to a new level. It goes beyond category management & trade promotion planning to true collaboration for the benefit of both the retailer & supplier.
According to research from NACDS, most companies plan to continue or expand their JBP programs.
For JBP to work there has to be a solid commitment from both the CPG manufacturer & the retailer. This commitment needs to include multiple levels of management ranging from the President to Department Heads including Sales, Trade Marketing, Supply Chain, Shopper Insights, IT & Finance.
JBP requires significant planning to identify key objectives that will benefit both parties. It requires identifying a high level strategy as well as developing a project scope by tactic, product & category. It’s important to identify potential issues up front as well.
During the scoping processes opportunities should be identified & discussed. They should also be prioritized. Those priorities may change before the actual project begins based on budget, IT capabilities, unexpected market changes, etc., but it’s important to set initial priorities none the less. Roles & Responsibilities need to be defined as well.
CPG companies that are able to provide more value to their retailers, will earn greater status faster than the competition. This blog series will explain how to accomplish that.
Positioning for Joint Business Planning sessions, JBPS, requires you to show retailers what’s profitable for them as well as for your internal organization. This will help you determine a short and long term plan for mutual success.
Increased Raw materials and shipping costs have forced companies to make cuts in manufacturing costs as well as resources. One of the greatest areas companies can maximize ROI is in trade spend. Trade promotion intelligence and TPO are key to establishing JBP. Understanding what promotions are working for both the retailer as well as for CPG has become more critical than ever. Other areas of efficiency can be found in supply chain and better understanding of OOS. JBP scorecards, reports and KPI's need to be developed to identify key areas where ROI is proven. Learn methods and items that should be included in your joint business planning sessions.