- Client is the market leader, with a strong increase in market share in 2019.
- Client is clear it’s not leveraging correctly on its relative importance in the market to obtain better trade terms with CPG suppliers
- Renegotiate Trade Term Agreements of top 400 CPG suppliers, in order to help improve the company’s back margin
Erea is using its classic supplier negotiation methodology, although adapted to the new normal of the COVID ERA.
- The company’s data is analyzed by our Analytics LAB, and sorted to identify the total sum of the suppliers’ contributions in the different Trade Terms negotiated by the Client
- A new negotiating strategy is design between EREA and Client’s Commercial Procurement Team
- “Negotiating dossiers,” with the new negotiating strategy designed are generated by EREA’s Retail Analytics LAB, are drawn up to identify imbalances in the commercial relationship between supplier and customer for each Trade Term
- Training is provided to the client’s procurement team in the preparation and interpretation of documents and in their use as a negotiation tool
- EREA together with the Commercial Procurement Team start the negotiation rounds with the top 400 CPG suppliers
- After one year, an improvement of 2.72 points was achieved over COGS
- The Commercial Procurement Team has clearly improved its negotiating skills, and feels confident with the quantitative methods used in the negating process
- An online Digital Platform is setup for the buyers to access each one of the 400 negotiating dossiers with real time data.