How do I improve my retailer relationships?

Introduction – be accountable

Retailers are busy, which means getting in front of buyers and supply-chain managers can be challenging. Suppliers shouldn’t leave it to chance whether the retailers are going to be fully accountable for the correct stockholding of their products. Retailers are literally managing tens of thousands of products and so tend to focus on key lines. This means it is the job of the supplier to ensure that:

A report by The Advantage Group examined the factors which were most important to both suppliers and retailers in terms of priorities [1]. These included delivering complete orders, building trust and being proactive.

At a glance, the above could be seen as a near impossible task given that some suppliers do not have the time or people power required. This guide will dispel that idea and give genuine solutions to suppliers of all sizes.

Be data-led

There is a misconception that being a data-led supplier requires excess amounts of time and will cost far too much to do so with conviction. These misconceptions are often because suppliers are not using the right tools, in the right way. Being data-led does not mean using countless spreadsheets which present insights in an outdated way, not to mention the fact the time spent analysing can be better used elsewhere. Nor does it mean baffling buying teams with 5-inch thick presentations, which are a poor use of both parties’ time. Finally, being data-led does not necessarily mean it’s necessary to have the expertise of a data analyst in an organisation.

What do we mean by being data-led and what are the key indicators it’s being done successfully?:

Help the retailer hit their targets

Helping the retailer hit their targets is part of a bigger picture that contributes positively to better working relationships. Building these relationships can be difficult. Firstly, they take time, and unfortunately, there are no solutions or tools that can make this instantly attainable. If suppliers can understand their buyers’ objectives and how they can help deliver them, then the process can be sped up.

Taking a basic buyer objective such as ‘’increasing sales’’ as an example. Achieving this means delivering effective promotions, optimising ranges, managing availability and supplier service levels (to name a few). All of these areas can be influenced by the supplier both negatively and positively.

In order to contribute to retailer targets there needs to be an element of collaboration.

Plans need to be shared between both parties to begin to develop a culture of genuine collaboration.

Forecasting is one of the biggest headaches for suppliers and retailers. This is arguably one of the most important reasons for collaboration, as being able to adapt to an ever-changing forecast is key. Even when unforeseen circumstances are removed from the equation, both suppliers and retailers often still fail to communicate basic forecasting amendments effectively.

When forecasting is discussed in terms of collaboration it involves suppliers having market knowledge which may not have been considered by the retailer. This is especially important to those operating in niche markets and needs to be communicated to retailers quickly and with ease. Doing so has a knock-on effect, leading to orders being delivered On Time and In Full (OTIF), which in turn builds trust and rapport with retailers whilst also helping them hit their targets.

Holding regular meetings is a great way of communicating present and future plans for both parties. They help to ensure a level of proactiveness and allow for better alignment to ever-changing retailer business plans. It’s important that these meetings show clear, data-driven insight to avoid wasting the short period of time when the two parties meet. Using a simple, data-driven system that can show up-to-date information at the click of a button means both parties can better communicate using the exact same information.

Deliver the basics

At the very least, suppliers should ensure consistency with their agreed-upon plan and that supplier service levels are met. If service levels fall short, it hinders the retailer’s ability to meet its own objectives and impacts the working relationship of both parties.

A large barrier to delivering the basics is the openness of communications. Suppliers and retailers need a level of openness which means admitting mistakes, providing upfront information and foreseeing potential problems. Being objective can be challenging!

For example, it may be evident that a range needs to be reduced or maybe even de-listed in certain stores. Whilst this obviously does not benefit the supplier in the short term, in the long term, a retailer is going to value the opinion of an honest supplier much more than one that only has its own intentions at heart.

Above all, suppliers need to ensure they have a great product. If people like the product, consumers will buy it, but product development shouldn’t stop once it has been launched. There needs to be constant attention to buying habits and how new versions / extended ranges can be developed.

Conclusion

Getting your fair share of time with the retailer is no small task, especially for those smaller suppliers who may feel they get pushed to the back of the queue.

The problem can be broken into two parts, both of which are solvable regardless of company size.

The first is the time it takes to get retailers and suppliers to collaborate properly, especially if you are new to the market. As discussed earlier in the article, building genuine rapport is not instantaneous. It requires effort and, more importantly, time, something which many suppliers may feel they do not have on their side.

The second is that suppliers often lack systems capable of giving them quick, accurate, and actionable insights (even the big suppliers). Despite what many may think, these systems do not have to cost an arm and a leg. Nor do they have to be so complex that a data analyst is required to interpret the data.

Having a system capable of the previous means that strong working relationships can be forged more quickly. If retailers are shown insights that can be actioned, resulting in products being delivered OTIF with minimal disruption, relationships will soon be forged, and suppliers will be listened to.