SMALL OPERATOR
Trust & Transparency
Strong partnerships with distributors and suppliers help small operators stay competitive By Renée M. Covino HISTORICALLY, the practice of convenience
store retailers aligning with suppliers and distributors to fulfill the quick needs of their customers has given the advantage to larger chains and their bigger buying power. However, the COVID-19 pandemic produced something of a supply-chain silver lining across the channel. Large retailers, small retailers, suppliers and distributors were all in the same overturned boat. Trust and transparency were heightened like never before in order to produce solutions to get everyone back on track. The result: updated best practices in collaboration that recognize forward-thinking small operators in a bigger way. The pandemic accelerated the need for greater access to real-time data to inform decision-making amid supply chain disruptions, labor shortages and decreases in consumer spending, noted Blake Weber, retail technology project manager at Clarkston Consulting, based in Atlanta. “While these challenges may have added tensions to some existing retailer/supplier relationships, overall we are seeing that they have actually driven collaboration and
trust in the partnerships, large and small, as both sides have worked together to navigate these issues,” he told Convenience Store News. For example, Weber cited that exchanging inventory and forecast data is now providing advanced visibility to avoid retail stock-outs; outsourcing inventory management to suppliers and distributors is removing friction in the retail ordering process and ensuring shelves are quickly replenished; and collaborating on managing promotions and leveraging historical sales data is driving promotion efficiency and execution. “As smaller c-store operators adjusted to industrywide changes, they have been exploring ways to lean into the supplier and distributor partnerships to achieve efficiencies in resourcing and costs,” he added. “Rather than selecting suppliers based on costs and margins, c-store operators are evaluating relationships more holistically through the lens of creating long-term, mutually beneficial — and profitable — partnerships that will ultimately provide the best experiences for their customers.” The pandemic inspired positive changes in how Lacey, Wash.-based Harbor Wholesale, the largest independent distributor in the West, serves small operators. The fourth-generation, family-owned company serves more than 6,000 convenience stores, independent grocers and
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