Since 2005 the IGD has run an annual survey looking at trading relationships across the globe between suppliers and retailers. In the 2015 survey 75 suppliers and 27 retailers took part. The 3 Suppliers’ Challenges from the IGD Trading Relationships Survey 2015 are:
1. Continue to Invest in Your Teams to Win
The Grocery Industry is highly competitive and highly complex. The Head of IGD’s Industry Development, Mark Golder, reports that the skills that supplier teams have could make the difference between success and failure. He also reported positively that whilst the industry is still under enormous financial pressure both retailers and suppliers continue to invest in their teams.
Action: Get an even greater return on investment in training by using our unique training method – ‘Sticky Learning ®‘.
2. Retailers are Expecting Even More from their Trading Relationships
Strategic alignment is expected of suppliers, and more specifically collaborative working, shopper understanding and highly skilled & empowered people. Joint business plans are becoming the norm. Those suppliers that can lead, have experience of doing them well, and can demonstrate an ability to work together in the joint business planning process will succeed.
Action: Prepare, prepare and prepare again for those Must Win Meetings because they can be the difference between losing and winning a year.
3. Understanding the Shopper is Paramount
The days of suppliers offering their wares and asking the retailer to do the rest are long gone. The suppliers of the future are those that understand their shopper, the retailer’s shopper and have found win:win:win opportunities for the retailer, the shopper and themselves. Versus 2014, retailers’ expectations have risen from 16% to 52%, expecting suppliers to ‘Develop specific category plans and tactics‘.
Action: Use a measure to understand whether you understand the shopper as well as you could and whether you are leading the category.
Which challenge do you think suppliers will struggle most with in their trading relationships with supermarkets? Please share your view by commenting below.