Collaboration: Supplier Cooperation is Copacetic

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Collaboration: Supplier Cooperation is Copacetic

11/01/2015

Retailers are generally satisfied with the degree of cooperation they get from their suppliers, according to the latest exclusive Retail Leader survey. Almost all (92.2 percent) characterized cooperation with suppliers as good or excellent, and none said it was poor.

When it comes to setting prices for what they sell, only 18.5 percent of respondents said they usually follow the manufacturer's suggested retail price. The rest said MSRPs are helpful but are not the sole pricing determinant.

Closely related to that is the question of promotions. Asked how often they follow their suppliers' suggestions when it comes to planning and executing price promotions, 22.2 percent said they routinely do so; 33.3 percent said they often do so; 37 percent said occasionally, and 7.4 percent said hardly ever.

Suppliers often reach out to consumers directly, with advertising, promotions, coupons and other things that can affect a retailer's operations and margins. Asked about their attitudes toward direct CPG outreach, 32 percent said they encourage it and are happy to see it in almost every case; 64 percent said they are mostly happy to see it but would prefer better coordination; and 4 percent said they are too often surprised by it and find themselves working at cross-purposes with their suppliers as a result.

How often do you ask suppliers for suggestions on which items to stock?
Routinely
34.5%
Often
20.7%
Occasionally
41.4%
Never/hardly ever
3.4%

How often do you follow these suggestions?
Routinely
25.9%
Often
40.7%
Occasionally
33.3%
Never/hardly ever
0.0%

How would you describe current business conditions?
Where do you expect to see business conditions for the next six months?