The Industry’s Leading Edge Process…
How Trading Partners Gain the Highest ROI
on Collaborative Business Planning (CBP)
Win Weber
Chairman & CEO
Winston Weber & Associates
©2012 Winston Weber & Associates, Inc.
Before We Begin…3 Minutes Of History
“The traditional relationship between retailers
and suppliers is best characterized as one of
mutual respect, cooperation, peaceful
coexistence and distrust”
“To someone outside the industry it would
appear most retailer/supplier relationships are
based on the ‘What’s in it for me’ philosophy
instead of ‘What’s in it for us’ philosophy.”
“We must encourage retailers and suppliers
to bridge the gap and work together for
mutual benefit.”
“Both retailers and suppliers must accept the
fact that without mutual benefit, or a win/win
relationship, there is no partnership.”
W. Weber
©2012 Winston Weber & Associates, Inc.
Before We Begin…3 Minutes Of History
Partnering is any Situation where the Retailer/Supplier Relationship is one where
there is Agreement to Leverage Combined Resources for Competitive Advantage
Cost Leveraging
Optimum
Category
Performance
•
•
•
•
•
•
Increased Unit Volume
Increased Sales Revenue
Increased Profits
Increased Market Share
Improved Customer Service
More Satisfied Customer
•
•
•
•
•
•
“Best Cost” Buying
Use all Available Vendor Funds
Increase Inventory Turns
Improve Promotion Effectiveness
Improved Promotion Efficiencies
Improved System Efficiencies
Supplier/
Retailer
Leverage
Lower
Cost
©2012 Winston Weber & Associates, Inc.
Let’s Talk About Today
Typical Joint Business Planning Processes
• No updated, consistent or formalized process across the business
• Primarily based on a supplier push model- selling market position,
strategies and brand plans to the retailer
• A tendency to focus on tactical and transactional issues with a short term
focus
• Insufficient understanding and communication of retailer’s strategies,
objectives and capabilities …under prepared for effective dialogue
• No clear and consistent approach for Top-to-Top meetings
• 75% of all “Top-to-Top” meetings are spent reviewing past performance
with both parties talking at each other
• Lack of clear process for actioning collaborative initiatives that result from
Top-to-Top meeting
• Inconsistent annual plan development process
©2012 Winston Weber & Associates, Inc.
Let’s Talk About Today
Only 20% of suppliers believe that their
strategic collaboration efforts have achieved
significant impact and 80% say it has
delivered only minimal to moderate results
Only 35% of retailers believe that suppliers
really understand them while 65% say
suppliers do not know enough about them
©2012 Winston Weber & Associates, Inc.
Significant improvement
must be made to satisfy the
demands of the retailer, the
supplier and importantly
the shopper
Now, Let’s Talk About The Future
For Maximum Effectiveness, Neither the Retailer
nor the Supplier can “Go It Alone”
• Neither party has all the data, analysis and insights
• Neither party has all the knowledge, expertise and
resources
• Neither party controls all of the marketing levers to
attract and convert consumers/shoppers
©2012 Winston Weber & Associates, Inc.
The Future…Collaborative Business Planning
Collaborative Business Planning
• Focused on opportunities and
An approach by which manufacturers
and retailers are strategic partners
through alignment of strategies,
sharing and development of shopper
insights and solutions, and application
of efficiency enhancement initiatives
leading to sustainable and mutually
beneficial results longer term
• Annual/longer term planning/performance
solutions…initiative based
• Sharing of consumer and shopper-centric
insights
• Translation of insights into action
• Aligning on operational/functional
opportunities
• Integration of knowledge/information is
required currency to “play”
• Broadly or selectively applied
©2012 Winston Weber & Associates, Inc.
A Process That…
• Offers sufficient flexibility to fit any retailer situation
Collaborative
Business
Planning
• Results in more aligned and impactful business planning
• Ensures a sharp focus on issues and opportunities leading
to shopper centric solutions
• Produces a much higher return on investment for resources
deployed .
A supplier or retailer who wants to be a winner in today’s environment,
and in the future, has no choice but to adopt the CBP process
©2012 Winston Weber & Associates, Inc.
Strategic Collaboration Framework
Strategic Collaboration Framework
Retailer
Manufacturer
Executive Sponsor
Merchandising Leadership
Executive Sponsor
Customer Management Leadership
Strategic Alignment
Common Goals and Measures
Success
Factors
Resource Alignment
Information/Data Sharing
Success
Factors
Functional Coordination
Joint Planning
Category Management
Growth
Enablers
Shopper Insights
Growth
Enablers
Shopper Marketing/Consumer Marketing
Supply Chain
Efficiency
Enhancers
Information Technology
Store Service/Execution
Subject Matter Expertise
©2012 Winston Weber & Associates, Inc.
Efficiency
Enhancers
Elements Required to Drive An Effective CBP Process
Customer Alignment
Goal and Strategy
Strategic
Direction
Go-to Market
Strategy
Customer
Assessment/
Strategy
Analysis, Insights,
Marketing Plans,
Other Initiatives to
Fuel Collaborative
Planning
©2012 Winston Weber & Associates, Inc.
Customer Value
Proposition
Customer
Segmentation
Business Review
and Assessment
Customer
Profile
Customer
Strategies and
Requirements
Brand Strategies,
Objectives and
Tactics
Shopper Insights
and Platforms
Market, Customer,
Competitive
Analysis
Trade Promotion
Strategy and
Process
Logistics/
Supply Chain
Improvement
Meaningful Segmentation Drives Resource Investment
Customer Segmentation Framework
High
Quadrant I:
Strongest ROI
Probability
Quadrant IV:
Minimal ROI
Probability
Quadrant II:
Strong ROI
Potential
Index:
Avg. = 100
Readiness/
Receptivity of
Customers to
CM and
Shopper
Marketing
Quadrant III:
Lower ROI, but
Strong Probability
of Collaboration
Low
Index: Avg. = 100
Low
©2012 Winston Weber & Associates, Inc.
Size /Performance of Customers
(Quantitative Measures)
High
The 3 Tiered Collaborative Business Planning Process
Strategic
Collaboration
Selective
Collaboration
Tactical
Collaboration
Strategic
Alignment Meeting
Annual Plan
Alignment Meeting
Annual Plan
Alignment Meeting
Team-to-Team
Team-to-Team
2-4 Key
Strategic
Initiatives
Annual
Customer
Planning
2-4 Key
Strategic
Initiatives
Annual
Customer
Planning
2-4 Key
Strategic
Initiatives
Annual
Customer
Planning
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Operations/
Functional
Initiatives
Initial Plan
Development
Operations/
Functional
Initiatives
Initial Plan
Development
Internal
Strategy/Plan
Alignment
Internal
Strategy/Plan
Alignment
Internal
Strategy/Plan
Alignment
Customer Plan
Development and
Finalization
Customer Plan
Development
and Finalization
Customer Plan
Development
and Finalization
©2012 Winston Weber & Associates, Inc.
Strategic Collaboration Process Construct
Key Process Design Components
Strategic
Collaboration
• Foundational strategy, process and
Strategic Alignment
Meeting
capability elements required to drive
CBP
• Customer profile, business
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
assessment and strategic plans to
build customer knowledge
• Detailed meeting preparation,
principles and structure for Strategic
Alignment Meetings (Top-to-Tops)
• High level process guidelines for
Team-to-Team meetings to plan and
execute strategic initiatives
• An integrated annual planning
process to bring collaboration to life
Customer Knowledge and Strategy Tool Box
Developed on Front End of Collaborative Process
Advanced
Customer
Profile
•
•
•
•
•
Customer structure
Key customer strategies and metrics
Customer Purchase Decision Process
Requirements and expectations for vendors
Strategic collaboration readiness
Business
Review and
Assessment
•
•
•
•
•
Successes and challenges
3 year history of volume trends and drivers
Review of key business drivers
Competitive landscape and performance
P&L overview
Customer
2-3 Year
Strategies
•
•
•
•
•
SWOT analysis
Sustainable competitive advantages
Keys to winning with the customer
Growth objectives and strategies- 2-3 year horizon
Resource requirements
©2012 Winston Weber & Associates, Inc.
Pre-Meeting Preparation and Communication
Strategic
Collaboration
Pre-Meeting Process
• Collaborate to identify and secure
Strategic Alignment
Meeting
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
agreement on issues/ opportunities to
be discussed
• Develop formal agenda for the
meeting
• Determine pre-meeting preparation
for supplier and retailer
• Conduct internal meeting to discuss
key issues and approach for the
meeting
• Develop and send pre-meeting
communication to retailer/supplier
48 hours in advance
Strategic Alignment Meeting Success Factors
Strategic
Collaboration
Success Factors
Strategic Alignment
Meeting
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
• Limited Number Participants
• Executive/Senior Team Leaders
• 60%+ time on future
• Open Discussion
• Idea Exchange
• Pivotal Strategy Alignment
• Consumer/Shopper Focus
• Customer/Shopper Focus
• Broad Goals
• Near/Longer Term
• Resource Alignment
• Initiative Agreement
Outputs of the Meeting-Goal and Strategy Alignment
Retailer Strategies
Supplier Strategies
Core Business and Merchandising Strategies
 xx
 xx
 xx
Key category merchandising strategies/objectives
 xx
 xx
 xx
Core Business and Customer Strategies
 xx
 xx
 xx
Key category merchandising strategies/objectives
 xx
 xx
 Overall Sales Growth
 Same Store Sales Growth
 Key Category Sales Growth
 Overall Sales Growth
 Same Store Sales Growth
 Key Category Sales Growth
Retailer Growth Objectives
 xx
Supplier Growth Objectives
Leverageable Areas of Strategic Alignment
 xx
 xx
 xx
©2012 Winston Weber & Associates, Inc.
Outputs of the Meeting- Alignment Initiatives
Area of
Focus
Description of Alignment Initiative
Timing
Team-to-Team
Leader
Shopper Focused Initiatives
Initiative 1
• X
• X
Supplier Resource
Retailer Resource
Initiative 2
• X
• X
Supplier Resource
Retailer Resource
Operations/Functional Alignment Initiatives
Initiative 3
• X
Supplier Resource
Retailer Resource
Initiative 4
• X
Supplier Resource
Retailer Resource
Other/Input into Annual Business Planning
Initiative 5
• X
Supplier Resource
Retailer Resource
Initiative 6
• X
Supplier Resource
Retailer Resource
Initiative 7
• X
Supplier Resource
Retailer Resource
©2012 Winston Weber & Associates, Inc.
Outputs of the Meeting- Shared Scorecard
Senior-level Scorecard
A)
Financial
Measures
1.
2.
3.
4.
Growth
Net profits
Gross margins
Market share
B)
Shopper
Insights
Measures
1. Trips
2. Basket size
3. Core shopper acquisition
C)
Strategic
Initiatives
1.
2.
3.
4.
Initiative w
Initiative x
Initiative y
Initiative z
©2012 Winston Weber & Associates, Inc.
Category-level Scorecard
D) Trade
Funding
Update
1. Projected funds generated
2. Projected funds spent
3. Funds pacing
E)
Causal
Measures
1.
2.
3.
4.
Distribution
Shelving
Merchandising
Pricing
1. Inventory
F)
Operational 2. Service levels
Measures 3. GMROI
Outputs of the Meeting- Cascaded Down
Strategic
Collaboration
• The outputs of the Strategic
Strategic Alignment
Meeting
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
Alignment Meeting will be
cascaded down into a Team-toTeam process for planning and
execution
• The outputs will be classified into
two categories with a Team-toTeam process for development of
each.
• 3 -4 longer term strategic
initiatives
• Annual Business Plan inputs
Shopper Centric Solutions Development
Proven
“Insights into Action” Approach
Strategic
Collaboration
Strategic Alignment
Meeting
Team-to-Team Platform
Alignment/Planning Meeting
Insights Synthesis
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Market
Assessment
Category
Analytics
Shopper
Research
Tactic and Program
Development
Retailer and Supplier
Implementation Plan
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
Analyze, Review and
Course Correct
Operations/Functional Initiative Development
Strategic
Collaboration
• Retailers will have varying interest in
these types of initiatives for
collaboration
Strategic Alignment
Meeting
• Cross functional initiatives may
include:
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
• Supply Chain/Logistics alignment
• Retail-ready packaging
• Store execution support
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
• Information technology alignment
Operations/
Functional
Initiatives
Initial Plan
Development
• The selected initiatives are cascaded
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
• Sustainability
down to a team-to-team process for
planning and execution with cross
functional resources from both retailer
and supplier
Annual Customer Planning and Management
Strategic
Collaboration
• Outputs from the Strategic
Strategic Alignment
Meeting
2-4 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
Alignment Meeting will also feed
the collaborative Annual
Customer Planning Process:
• Alignment on key brand
priorities
• Alignment on key retailer
priorities
• Profitable volume driving
programs
Collaborative Business Planning Must Be Fully Integrated
Strategic
Collaboration
Integrated Annual Customer Planning
Strategic Alignment
Meeting
(Marketing, Sales and the Retail Customer)
Jan
2012
Feb
2012
Mar
2012
Apr
2012
May
2012
Jun
2013
Jul
2013
Aug
2013
Sep
2013
Oct
2013
Nov
2013
Dec
2013
Team-to-Team
2-4 Key
Strategic
Initiatives
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
Release of topline F’13
brand strategies
Marketing
Sales
Customer Pre-Planning
Meeting
Customer
Quarterly sales &
market-ing leader-ship
review of F’13 plans
Receipt of Over-arching
brand strategies and
platforms
Top-to-Top
Strategic Alignment Meetings
Finalization of F’13
market-ing plan &
preview of 2nd Half F’13
innov-ation
F13 Marketing Plan
Kick-off & go/no go 1st
Half F’13 innov-ation
Finaliz-ation of 2nd Half
F’13 market-ing plans
Release of F’13
planning materials, new
items, trade strategies,
DSMP
Customer Plan “Team-to-Team
Collabor-ation” Meeting
•New itemsd
•Consumer/shopper programs
•Strategic initiatives
F’13 customer
segment-ation and
invest-ment rate release
F’13 customer team
plan develop-ment
Final F’13 Advert-ising
plans
Quarterly sales &
market-ing leader-ship
review of F’14 plans
Customer Present-ations
•1st Half F’13 firm
•2nd Half F’13 soft
Final F’13 AOP
alignment
2nd Half Customer Plan Collaboration Meeting
•New items
•Consumer & shopper marketing
•Strategic initiatives
2nd Half F’13 innov-ation
release
Customer Present-ations
2nd Half F’13 firm
1st Half F’13 soft
Selective Collaboration Conducted With Tier 2 Customers
Selective
Collaboration
Annual Plan
Alignment Meeting
1-2 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
Operations/
Functional
Initiatives
Initial Plan
Development
SVP level involvement
•
•
Annual Plan Alignment Meeting
structured for maximum productivity
• Focus on annual planning inputs
• Strong focus on shopper centric
initiatives…driven by global insights
and platforms
• Selective strategic initiatives
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
•
Remaining Customers Engaged In Tactical Planning
Tactical
Collaboration
Annual Plan
Alignment Meeting
1-2 Key
Strategic
Initiatives
Team-to-Team
Annual Customer
Planning and
Management
• No Annual Plan Alignment
Meeting with senior executives
• Regional Sales Managers/Brokers
• Tactical planning only
Shopper
Centric
Solutions
Pre-planning
Analysis/
Insights
• Minimal plan customization
Operations/
Functional
Initiatives
Initial Plan
Development
Business Planning process
Internal Strategy/
Plan Alignment
Customer Plan
Development and
Finalization
©2012 Winston Weber & Associates, Inc.
• Modified Version of Selective
A CBP Playbook Utilized For Training And Consistency
Introduction- CBP Process & Strategy
Key Play Book Elements
Collaborative
Business
Planning
Play Book
1.Customer Knowledge and Strategic
Plan
2. Strategic Alignment Meeting
3.Team-to-Team Process for Strategic
Initiatives
4.Preview- Integrated Annual Planning
Process and CBP activation timeline
©2012 Winston Weber & Associates, Inc.
Keys to Success
“Tone
from
Tone
theFrom
Top”
Top
• Raise Level of Engagement/Collaboration
• Listening, Dialogue & Sharing
• Mutual Benefit
Develop
Retailer
Knowledge
• Key Strategies
• Objectives & Goals
• Alignment Opportunities
• No Two Retailers are Alike
Analysis
&
Insights
Driven
• Insights Into Activation
• Market Analysis & Customer Segmentation
• Strategies & Growth Platforms
Consistent
&
Disciplined
Process
©2012 Winston Weber & Associates, Inc.
• Comprehensive Training
• Reinforcement at all Levels
• Objectives/Measures Tracking via Scorecard
The Industry’s Leading Edge Process…
How Trading Partners Gain the Highest ROI
on Collaborative Business Planning (CBP)
Winston Weber and Associates
Thank You!
If you would like to learn more please contact Win Weber at
winweber@winstonweber .com
©2012 Winston Weber & Associates, Inc.