{"id":11926,"date":"2022-02-10T19:16:05","date_gmt":"2022-02-10T19:16:05","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/10\/how-customers-benefit-from-collaborative-partnerships\/"},"modified":"2022-02-10T19:16:05","modified_gmt":"2022-02-10T19:16:05","slug":"how-customers-benefit-from-collaborative-partnerships","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/10\/how-customers-benefit-from-collaborative-partnerships\/","title":{"rendered":"how customers benefit from collaborative partnerships"},"content":{"rendered":"

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In the past, manufacturers and distributors didn\u2019t trust each other. They co-existed in a relationship of convenience simply because of the financial benefits of collaboration. But, today, both parties are increasingly realizing that collaborative partnerships benefits both the customer, and the bottom line.<\/p>\n

Why is there a lack of trust and collaboration between trading partners?<\/h4>\n

In the past, a lot of secrecy surrounded deals. Manufacturers believed distributors lacked commitment to the product and promotional programmes, as well as lacking sales and marketing skills. They felt frustrated by their inability to speak directly to customers.<\/p>\n

On the other side, distributors believed manufacturers couldn\u2019t manage territories effectively and lacked clearly-defined goals or plans to help achieve their goals. They felt unsupported. They feared manufacturers would dump them with little notice \u2013 negating their investment and effort in marketing.<\/p>\n

With this lack of trust, collaborative partnerships suffered.<\/p>\n

As a result, until recently, the combination of complex deals, admin challenges, technology constraints, and poor communication resulted in a lack of clarity, disorganized deal information, and a lack of visibility. It\u2019s not surprising that 4% of potential rebate revenue typically went unclaimed.<\/p>\n

The tide has turned: Adversarial relationships are turning into true partnerships<\/h4>\n

Today, however, we live in an era of customer-centricity. This focus on providing value to customers has forced both parties to see the benefits of collaborative partnerships, instead of settling for transactional or even adversarial relationships.<\/p>\n

What enabled this sea change? The realization that companies are no longer competing as individual businesses anymore, they\u2019re now competing at the supply chain level, too. In an article in Retail Week<\/a>, Precima Director, Martin Black, says, \u201cTrading partners need to work together for the benefit of the shopper if they want profitable sales to grow\u201d.<\/p>\n

As a result, trading partners are not only sharing more information \u2013 when they have the tools available to do so \u2013 they\u2019re sharing broader goals and objectives. Retailers are looking ahead and expect their suppliers to support them, and when retailers communicate their expectations, share plans, and gather insights based on common information, beautiful things happen.<\/p>\n

Perceptions of collaboration have changed<\/h4>\n

It\u2019s hardly surprising, therefore, that perceptions of collaboration are changing for the better. According to research by Precima<\/a> released in June 2020, 92% of retailers and 85% of suppliers say collaboration has improved. Unfortunately, only 62% of retailers say they are satisfied or very satisfied that suppliers deliver what they promise. Only 59% believe their suppliers have a vision for the future. And while 58% of suppliers believe their retailers should understand their business priorities, there is only a 46% satisfaction rating in this area.<\/p>\n

The research concludes that \u201cAdopting a common platform for improved collaboration with one version of the truth is the key to shopper-centricity\u201d.<\/p>\n

It\u2019s time to make information sharing easier. The key to unlocking access to data \u2013 and the insights it reveals \u2013 is ensuring everyone is using a simple, effective tool to collaborate.<\/p>\n

What are the benefits of collaborative partnerships?<\/h4>\n

Research by McKinsey<\/a> confirms what any pro-collaboration participant in the supply chain knows in their gut, \u201cWhen buyers and suppliers are willing and able to cooperate, they can often find ways to unlock significant new sources of value that benefit them both\u201d.<\/p>\n

The benefits of general supply chain collaboration include shorter lead times, lower out-of-stock levels, improved customer service metrics, lower transportation and warehousing costs, risk mitigation, improved forecasting, planning and capacity management, and even innovative new product development.<\/p>\n

Collaborative partnerships start with open communication and improved visibility into customer demand and supplier performance. It results in lower costs, shared best practices, better-negotiated deals, competitive advantage, and, ultimately, increased revenue and profit for both parties.<\/p>\n

As a McKinsey survey<\/a> of more than 100 large organizations in multiple sectors concludes, \u201ccompanies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers\u201d.<\/p>\n

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