CPG Chatter

Manufacturers know a first-rate Broker network is the key to success. Good Brokers can be the difference between being a market leader or follower. Brokers are much more than a simple conduit between Manufacturer, Distributor and Retailer. In addition to getting and keeping a Manufacturer’s product on the shelf, they serve as the eyes and ears of the marketplace. The business and market intelligence that Brokers send back to a Manufacturer are as valuable as the sales they land.

Occasionally, the stars align and an outstanding partnership is born immediately. But most take time to develop and there can be many peaks and valleys along the way. So how can one create a high-performing Manufacturer-Broker relationship more consistently?

The secret is utilizing a strong collaboration platform that is intuitive, easy to use and provides a consistent view to all parties. A good place to start is with a Trade Promotion Management (TPM) system. Best-in-class TPM systems can be used not only to track and manage trade promotions, but to improve Manufacturer communication and coordination. Here’s how…

1. Get a real-time view into sales and spend forecast. By using information that is updated nightly, all parties clearly know if the company is on target to meet corporate objectives.

2. Know how much product to produce and when.  Improve coordination between Brokers and Production and reduce lost sales from short-shipments and out-of-stocks. Information = Prevention.

3. Improve the settlement and deduction process. By automating the deductions process, most items can be cleared and settled by the Finance team, eliminating the Brokers involvement. Manufacturers can arm the Broker with better information to defend and settle disputes more quickly and professionally.

4. Gain complete visibility into active and planned promotions. A Manufacturer’s TPM system should provide quick insight into every promotion that is running or slated to begin. This allows Brokers to better organize their activities around store checks, audits, building displays, performing resets and cutting in new items.

5. Improve leverage with retailers.  With accurate TPM data, a Manufacturer can educate Retailers as to the value of their products. They can prove how much of sales is driven by trade spend, not only by product, but by time period and promotion type.

With today’s soft economy and consumers showing less brand and store loyalty, competition for the shopper’s wallet will continue to heat up. Manufacturers, Brokers and Retailers will be successful if they seek out ways to collaborate. Using a TPM system as a CRM-like tool will be one way to get ahead.