Benefits of Retailer/Supplier Collaboration

1. Benefits of Retailer/Supplier Collaboration • Operations & Logistics • Reduces purchasing and order management time; less administrative timeneeded 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 increasingsales and add to gross margin. An added benefit: improved customerservice. • Reduces buffer stocks; possible reduction in warehouse facilities. • Improves transportation efficiencies (truckload capacity) • More accurate matching of supply to demand

2. 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 wantsof 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