Historically, consumer product manufacturers have had the upper hand when negotiating with retailers. Their organizational structure gives them a big advantage: Each account manager at a manufacturer is responsible for only a few dozen similar products, while retail buyers often have to cope with hundreds of dissimilar ones. That is the situation we found within this client.
To get the best deal, we needed to reverse the “information asymmetry” with its suppliers. Good arguments mean lower costs – and building good arguments begins with collecting data about sales, margins, space productivity, market share evolution, and commodity prices.
The client already possessed the data they needed to reverse the information asymmetry: The problem was that it was scattered, and important value-added insights were missing.
The key was to collect robust data efficiently in one place, process it to generate the insights required, and serve it up in a suitable format to the buyers so that they had information at their fingertips.