Our comprehensive, highly disciplined collaboration model, which continues to evolve as we adapt to changing industry dynamics, has repeatedly produced the desired results for both retailers and CPG manufacturer clients. We have developed countless collaboration strategies and go-to-market plans, facilitated several hundred top-to- top initiatives, conducted numerous classroom and tutorial collaboration training sessions, guided industry initiatives and written numerous articles on the subject.

We define strategic collaboration as any situation where there is explicit agreement between a retailer and supplier to leverage combined resources for the purpose of delivering sustainable mutual benefit, with emphasis on efficient movement of product across the supply chain, profitable category growth and enhancement of the shopping experience.

The ability to achieve a strategic collaborative relationship falls squarely on the shoulders of the retailer and supplier. Both must be willing to rethink their priorities and move beyond traditional collaborative practices to where the shopper is the primary emphasis of all initiatives. This means…

Our Approach

We believe that disciplines must be in place in order to engage in mutually beneficial collaborative relationships with suppliers. Everyone must be “on board”. The process begins with establishing a supplier relationship strategy. This strategy will drive the collaborative process. The retailer must decide how deeply they are committed to the process. What is it that they are willing to offer to their partners? What are the expectations that the retailer has of its partners? The offerings and expectations must be developed, agreed to and communicated across the organization. Once the offering and expectations are established, we segment suppliers based on who is the primary influencer of shopper behavior…the retailer or the supplier. This process classifies suppliers based on brand share and consumer loyalty to the brand, the key to understanding negotiating leverage and the implications on supplier relationships. In some instances the negotiating leverage between the retailer and supplier may be neutral; in other instances the retailer or supplier may have negotiating leverage.

This segmentation process provides the framework for determining the type of behavior that can deliver the highest return on investment in each supplier relationship. Suppliers are segmented in four quadrants as outlined below:

When the segmentation process is completed, we develop “supplier relationship guidelines” for each of the four segments. These guidelines include the translation of the offering and expectations to fit each of the four segments as well as development of desired category manager behaviors for each segment.

These guidelines, which are very detailed, can range from “encourage shopper focused collaboration for mutual benefit” to “pursue aggressive cost negotiations and possible substitution”. When this step is completed, we prioritize categories based on sales and profit contribution to the retailer, and prioritize supplier candidates for strategic collaboration. The goal of strategic collaboration should be to grow sales and profits by enhancing the shopping experience through creation of a truly differentiated in store offer.

Strategic Collaboration Process

The following is an outline of our time tested collaboration process:

Our experience and in-depth understanding of the collaborative process ensures a successful engagement, sustained over the long-term for both the retailer and the suppliers. The key to successful collaboration is a disciplined top-to-top process.

Top-to-Top Effectiveness Model

The “Top-to-Top” meeting provides an opportunity to confirm or gain an understanding of each company’s goals, business strategies, marketing plans, operating philosophies, resources, expectations, etc. It brings senior executives together in an environment that encourages productive communications; an opportunity to discuss how both parties can work together for mutual benefit.

The meeting should be carefully orchestrated with the primary emphasis on the future…how to grow sales and profits, how to enhance the shopping experience and how to maximize operating efficiencies. It should be structured so there an opportunity for spontaneous “what if” discussion…the key to breakthrough thinking that separates the “winners” from the “losers”.

Time allocated to reviewing past performance should be kept to a minimum. Each party should come to the meeting prepared to discuss business dynamics from a broad or global perspective. This is the best way to set the stage for strategic dialogue. It’s important to remember that the “Top-to-Top” meeting is only one aspect of an on-going collaborative process that requires on-going awareness and commitment throughout each organization.

WWA’s “Top-to-Top” model includes a proven pre-meeting approach, guidelines on how to engage in productive “Top-to-Top” communications, and how to structure post meeting communications and project initiatives across companies and down through the respective organizations to ensure delivery of expected outcomes.

There is consensus throughout the industry that collaboration must move to a much higher level…we know how to get our clients there