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He said the other top supplier priorities are for retailers to work productively with them to build a profitable business for both parties; and for stores to execute promotional and retail marketing plans in accordance with previous commitments. While most large suppliers have been developing collaborative relationships for years, even some of the largest CPG’s are averse to collaborating, he pointed out, “simply because they are so large that they can get stuck in their ways, which sometimes means they become somewhat dictatorial.” Smaller suppliers usually need to be more open to collaborating, he added – to make sure they get their foot in the door. But even some smaller suppliers, who make up the vast base for most retailers, have their problems with collaboration because they rarely see the retailer, “so knowledge and understanding of the needs of each customer’s business is often more limited,” Hubbard pointed out. “The future for suppliers of any size can be enhanced and improved through greater collaboration,” he added. What makes the challenge more difficult, Hubbard said, is the growth of digital and
omni-channel offerings, which many retailers separate from their brick-andmortar businesses. “The challenge is getting both sides within a retail organization to work together to develop one holistic point of view,” he said.
“TO ACHIEVE TRUE CO L L A B OR A T I ON , C OM P A N I E S ON BO TH S I D E S OF T H E T A B L E MUST BE OP E N T O F E E D B A C K . . . ” The most recent Advantage study of U.S. retailers produced one major surprise, Hubbard said. Asked to rank 37 strategies in terms of their importance, retailers ranked “digital” as a very low priority, at No. 34, he noted. “Our hypothesis for why digital ranked so low is that the respondent base was comprised mainly of buyers, merchandisers and supply chain/ replenishment personnel – a group that doesn’t see digital as part of its job. It’s the advertising and marketing people who are more focused on ecommerce and digital right now. “But we would expect interest among all groups to increase as digital strategies become more integrated at the retail level.” Editor’s Note: Elliot Zwiebach has been reporting on the food industry for 47 years. He retired from Supermarket News in July when his job was eliminated.
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