For many (if not most) retailers, Private Label products are a key part of their strategy. By producing their own versions of familiar basket items, they can achieve higher profit margins and increase customer loyalty. And in today’s highly competitive retail world, a healthy dose of both is crucial.
The importance of Supplier Engagement for these retailers with Private Label products really can’t be over-stated. Working together with suppliers, many supermarkets have successfully come up with ranges of Private Label products that keep customers coming back to their stores time and again. But no matter how well they are already doing, retailers need to invest continually in making their working relationships with suppliers the best they can be; because building Supplier Engagement leads to:
• faster New Product Development
• better quality Private Label products
• reduced supply chain risk
• a great Customer Experience
Building Supplier Engagement
Last week I wrote about how you can think of every task, project or initiative which involves a Supplier as an assault course on the journey towards increasing Supplier Engagement and all the benefits that come with it. When you equip them with the motivation and understanding to successfully negotiate each metaphorical course, Suppliers will come out the other end more engaged, a more tightly-integrated part of your Private Label team.
Over the next few weeks, we’re going to look at a real-life example; walking through the steps you might take to turn a typical supplier activity into an opportunity to improve Supplier Engagement.
Real-Life Example: It’s “Just a Survey”…
From time to time, it’s necessary to gather information from suppliers. Maybe you need to find out about their use of Palm Oil for your annual report, or perhaps you need them to confirm your list of contact details so that you can be sure your communications are always going to the relevant individuals. A survey is a nice, efficient way to gather this kind of information.
A Supplier’s-Eye View
To begin, first step back and consider your task (your survey, in this case) from the perspective of a Supplier. What will they have to do in order to complete their assignment? What might hinder them? What questions might they have?
Let’s take a look:
Remember, the aim of applying this assault course thinking to your survey is to build Supplier Engagement. Empathising with your suppliers by anticipating their experience of the tasks you set them is an important part of strengthening the working relationship you have with them. The more they feel understood and valued by you, the more Engaged they will become.
Next time, we’ll look what you can do to equip your suppliers to overcome the potential obstacles that you’ve spotted.