Retailers and suppliers becoming more closely intertwined and responsive
Survey finds 90% of retailers and their suppliers say they have improved collaboration over the last two years
Coordination and collaboration between grocery and their supply chains is increasing according to new research and leading to better business results due to customer satisfaction and improved operations.
More than 90% of the 210 global grocery retailers and suppliers surveyed for the Winning with Retailer-Supplier Collaboration in Grocery and Drug Retail report said that their collaboration has improved over the past two years, leading to better customer satisfaction and business planning.
According to a press release for the report, retailers and suppliers agree that the ability to meet the needs of retailers’ customers is the top advantage of collaboration.
In the research, 70% of retailers and 58% of suppliers report that responsiveness to consumer and market trends is the key criteria for successful collaboration.
Trading partners also say improved collaboration positively impacts business operations and drives more than one-fifth of their total revenue.
“There has always been a need for retailers and suppliers to improve their cooperation for the benefit of the customer and the survey emphasizes the critical nature of this requirement. Data analytics is the central driver for this enhanced cooperation and the tools now available to trading partners enable strategic sharing of knowledge to better create and manage customer demand,” said Brian Ross, CEO of Precima, a Nielsen Company that offers retail consulting and analytics specializing in shopper insights and customer-centric solutions.
“In an environment where consumer demand is changing by the hour, and with the high potential upside, affecting up to one-fifth of overall revenue, it’s critical for retailers and suppliers to identify ways they can further strengthen collaboration and their lines of communication,” noted Deborah Weinswig, CEO and Founder of Coresight Research.
This study is based on the analysis of data from an online survey of 210 large grocery/FMCG/CPG manufacturers/suppliers and retailers.