TIGARD, Ore. — The road to successful trading partner relations is far less winding than some might believe.
A panel of seasoned industry executives here said achieving optimal relations relies on a few simple rules, including thinking like consumers, seeing business through the eyes of retailers and sharing information in a trusting environment.
“The core issue is trust,” said Joe Patti, vice president, retail planning and category management, Anheuser-Busch, who spoke at the Executive Forum of Portland State University's Food Industry Leadership Center. “Often retailers find their data leaked by vendors. But to really get to the next level you need trust. Not everyone deserves trust. You must demonstrate why you should be trusted.”
Dirk Davis, vice president of marketing, Unified Grocers, stressed the importance of a flow of information between trading partners. “Our independents have to share information with vendors,” he said. “We need to understand consumers to build programs specific for them. We must do a better job of collaborating.”
Paul Adams, president, Paul Adams & Associates, said retailers who overcome their reticence to sharing information have a lot to gain. “If a retailer is more willing to share information, it's incredible the payback that can result,” he said.
In turn, he added, retailers are relying on suppliers for insights into how consumers are behaving in the marketplace. “That's a real value added to create a competitive point of difference,” Adams said.
Carole Christianson, executive vice president, Western Association of Food Chains, said suppliers must understand how retailers rank success in each category. “You need to talk in the retailers' terms,” she said. “The measurement of performance must be the same.”
Patti said testing new initiatives at retail is one of the surest roads to success. “More of our successful customers are testing quickly, measuring results and seeing what to improve,” he said. “They are action-oriented. The marketplace is so dynamic now that you can't wait to try new things.”
Davis said that vendors are expecting retailers to follow through on commitments to execute at the store level. “With the program we are putting together, we must execute to maximize promotional dollars, reach the consumer and drive cases,” he said.
Patti said big retailers must balance the different requirements of centralization and localization. “We deal with a lot of large chains, the majority of which understand that centralization has benefits,” he said. “But you must act like an independent retailer when it comes to executing store-level schematics and local marketing programs. That has a sales impact.”
