The power of Trade Spend Management Software for CPG sales teams
Effective collaboration between manufacturers and retailers is vital for sustained growth and success in the consumer packaged goods (CPG) industry. However, achieving this level of collaboration can be challenging, as both parties have different goals and priorities.
Manufacturers are typically focused on increasing brand awareness, driving sales, and gaining market share. Retailers, on the other hand, are fixed on maximizing profits and increasing customer satisfaction.
So, to foster a mutual beneficial relationship, it’s crucial for CPG sales teams to step into the shoes of retailers and understand their perspective. This blog explores the significance of trade spend management software in facilitating collaboration, enhancing decision-making, and driving positive outcomes for both parties.
Understanding the Retailer’s Perspective:
In the field of CPG, manufacturers and retailers usually have different priorities and strategies. Manufacturers focus on brand, distribution, visibility, accessibility, and promotions, all in a bid to outperform competitors. Retailers, on the other hand, prioritize assortment management and basket value to attract and retain customers.
Recognizing these differences while simultaneously finding common ground is essential for successful collaboration. By aligning goals and understanding each other’s perspectives, manufacturers and retailers can create mutually beneficial strategies that drive growth for both parties.
The Role of Collaboration in Mutual Success:
Collaboration between manufacturers and retailers should extend beyond short-term gains. It is easy to get sucked into negotiations and conflicts when each party only focuses on what benefits them, day to day. But evolving long-term strategies together is crucial. Establishing a shared goal and vision enables manufacturers to demonstrate their commitment to the retailer’s success, fostering a mutually beneficial partnership.
Revenue Planning to drive shared results:
Joined-up business planning starts with a well-founded full-year outlook, spanning sales, profits, and other key metrics. For conversations between manufacturer and retailer to generate value, it is essential to have a comprehensive view of both the CPG manufacturer’s and the retailer’s performance throughout the entire year. A full-year outlook allows businesses to align their strategies and goals with those of the retailers, fostering collaboration and partnership. By enabling the analysis of commercial performance data and trends, it enables proactive decision-making, allowing companies to find opportunities for growth and address potential challenges well in advance. This holistic approach to planning ensures that all stakeholders work together towards shared objectives, maximizing revenue potential and driving mutual success in the marketplace.
Leveraging Advanced Analytics for Insights:
Advanced analytics can be a valuable aid to strengthening collaboration. Generating insights through data-driven decision-making helps manufacturers and retailers co-develop strategies based on facts and figures. By setting concrete goals and monitoring performance against them, manufacturers can ensure alignment with the retailer’s long-term category vision.
The Power of Trade Spend Management Software:
Visualfabriq’s Trade Spend Master is a powerful solution for facilitating collaboration and optimizing trade spend management. By empowering CPG sales teams with real-time calculations, the software enables them to assess the impact of various scenarios and generate insightful reports for use during retailer negotiations. The Trade Spend Master by Visualfabriq equips businesses with the necessary data and analytics to make informed decisions, strengthening their position in the competitive market and fostering stronger partnerships with retailers.
Promotions: From Guesswork to Informed Decisions:
The Trade Promotion Masterin Visualfabriq allows manufacturers to simulate the impact of promotions on both their P&L as well as retailer contribution. By analysing metrics such as volume, value, profit, and retail margin effects, sales teams can make data-backed recommendations to retailers. This data-driven approach ensures discussions are well-prepared, constructive, and mutually beneficial.
Fact-Based Discussions and Enhanced Negotiations:
The software addresses the challenges around discount-centric negotiations by allowing manufacturers to showcase the overall value they bring to retailers. With insights into investments made, net margins, and the impact on the industry, CPG manufacturers can foster discussions based on long-term value creation rather than short-term discounts. Fact-based discussions supported by real-time data enhance the credibility and effectiveness of negotiations.
Software for Continuous Improvement:
Visualfabriq brings market best practices to clients, ensuring they have access to cutting-edge solutions. As a true software as a service (SaaS) provider, the software releases incorporate these advancements without requiring costly updates. All Visualfabriq’sclients, including the earliest adopters, benefit from operating on today’s codebase with the latest features and improvements. The commitment to continuous improvement is also reflected in the way the software evolves in response to user feedback and needs, making it a consistently valuable tool for CPG sales teams. By simplifying processes, integrating diverse data sources, and enabling seamless decision-making, the software empowers manufacturers to focus on growth strategies and strengthen their partnerships with retailers.
Unlocking Growth and Success:
By embracing trade spend management software, CPG sales teams can unlock growth and success. The software allows manufacturers to leverage data-driven insights, enhance collaboration, and make informed decisions. Manufacturers can confidently present their proposals to retailers, backed by real-time calculations and comprehensive reports. This empowers manufacturers to demonstrate their value, showcase the potential impact of promotions, and align their strategies with the retailer’s vision.
The Future of Trade Spend Management:
As the CPG industry continues to evolve, trade spend management software will play an increasingly critical role. The ability to leverage data, analytics, and insights will separate successful manufacturers from their competitors. By investing in trade spend management software, CPG sales teams can proactively adapt to market dynamics, optimize trade spend, and build resilient partnerships with retailers.
Trade spend management software is a powerful tool that can help CPG sales teams to maximize collaboration and growth. By providing a comprehensive understanding of the impact of promotions, price changes, and assortment decisions, this software empowers sales teams to make informed decisions and create mutually beneficial promotional, pricing, and investment strategies.
In addition, trade spend management software can help to improve communication and transparency between manufacturers and retailers. This can lead to stronger relationships and a more collaborative approach to trade spend management.
Embracing trade spend management software is a strategic move that positions CPG manufacturers at the forefront of industry innovation and drives sustainable growth. With the power of technology, manufacturers can navigate the evolving landscape, optimize trade spend, and achieve their goals for long-term success.
If you want to learn more about how Visualfabriq’s trade spend management software can revolutionize your CPG sales strategies, click here to explore its features and benefits or book a demo with us. Discover how our advanced technology can empower your team, enhance collaboration, and drive sustainable growth in the ever-changing industry landscape.