Essential Tips to Improve CPG and Retailer Collaboration


Consumer packaged goods (CPG) firms and retailers may be separate entities, but their success is dependent on one another. The global CPG market is becoming increasingly volatile with growing consumer expectations. Both retailers and CPG suppliers must work together to achieve goals, coordinate procedures, increase the data transparency, and manage expectations.

Developing collaborative partnerships benefits both retail and CPG, which is why businesses should make every effort to extend cooperation and collaboration with their retail partners.

Here are some essential tips to improve CPG-retailer collaboration:

Collaborative Planning

Retailers are stakeholders in your company’s supply chain and constitute the main entity in implementing your sales strategy. Creating your sales plan without involving retailers is a major strategic loophole. Collaborate with your retail partners to form a joint plan and set sales goals. To achieve success in your strategy, you need to synchronize objectives and communicate key performance indicators (KPI) to each other.

Routine Evaluation

Collaboration involves increased communication in all aspects, starting from setting goals to meeting the delivery requirements. To help you and your retail partner achieve strategic and short-term goals, it’s important to keep track of your performance. Hold regular meetings with your retail partner and review performance.

Strong Communication

Communication lays the foundation for any teamwork. A good relationship between you and your retailer is only possible through strong communication and frequent human interactions. Frequent communication helps in building trust and empathy between supply chain partners.

In-Person Communication

Data Transparency

Information sharing and data transparency do the same job as strong communication skills. Both companies and retailers should agree on what data to share and how frequently it will be shared. Data received from retailers helps businesses evaluate their sales targets for each brand while retailers can analyze consumer behavior and demographics from the data they receive from companies. Joint in-store surveys can help both retailers and companies assess consumers’ expectations and forecast demand and supply accordingly.

Employ Integrated IT Solutions for Close Correspondence

Technological advancements have necessitated businesses to collaborate closely through integrated IT solutions that allow instant access to required information and become more responsive and agile as supply chain partners. Inventory management and point-of-sale software integration from retailers with the CRM and inventory management systems of the company create ideal circumstances for increased agility and timely movement of products from the manufacturer to the retailer.

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