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Getting a Cost Price Increase through the trade

Description

CPI Workshop:, A one day workshop with the Commercial team helped to deliver a cost increase of 2.7% across the trade.

Year

2018

Supplier contacted with a need to ensure a significant cost increase was delivered across the trade.  Team were mixed experience and covered retail, wholesale and food service.  Varied levels of negotiation training.

Action

We worked with the Commercial Director to ensure there was a simple and clear message to deliver.  This included a rationale, timing, and importantly, what was and was not negotiable.  We used these inputs including the actual data and information to bring the workshop alive.  We agreed the flow of the workshop to be more practical than theoretical.  This followed a brief recap of negotiation.  Then real clarity on the message and outcomes.  Then each account planned their approach and engagement.  This was then backed up with role plays of 3 buyer supplier meetings to move the negotiation towards agreement.  Rejection.  Reluctance.  Negotiation. 

Result

As the team were clear on expectations and outcomes and were aligned internally, they were able to deliver a consistent message to all channels with confidence.  The result timing varied by customer but all followed a path of resistance, negotiation and finally acceptance. 

Value to supplier

  • Full CPI agreed and to time. 
  • Relationships remained strong. 
  • 2.7% cost increase agreed with entire trade.
METHODOLOGY
  1. Research
  2. Issues spotting
  3. Insights
  4. Conflict resolution
  5. Training

£11m

Savings in excess of £11 million

100%

success rate with dispute resolution

7.5m

Largest saving in excess of 7.5m

Informative, surprised how little I knew and not surprised at low level of implementation in retail today.

KELLOGG’S