Benefits of Retailer/Supplier
Collaboration
Operations & Logistics
 Reduces purchasing and order management time; less administrative time
needed to create and receive product orders, expedite shipments, and
respond to problems
 Improves demand management thus reducing overtime production labor
costs.
 Reduces out-of-stocks for both manufacturer and retailer, thereby increasing
sales and add to gross margin. An added benefit: improved customer
service.
 Reduces buffer stocks; possible reduction in warehouse facilities.
 Improves transportation efficiencies (truckload capacity)
 More accurate matching of supply to demand
Benefits of Retailer/Supplier Collaboration
Marketing and Sales
 Equips marketing managers with marketing management tools
 Reduces the complexity of marketing by providing new insights
 Allows you to develop programs that truly serve the needs and wants
of your customers
 Improves ROI on Trade and Consumer promotions
 Facilitates a shift from “function control” to “enterprise management” of
your marketing strategy (focus on MROI”)
 Aids in coordination of advertising, consumer promotion, and
trade promotion activities
 Creates a more unified message that can touch both the head
and heart (appeal to both logic and emotion)
 Promotion compliance tracking