Retail Value Chain
Creating a two-way data-sharing street can have many benefits for all parties involved. However, it’s easier said than done. Here, Britt Fogg, SVP, Product Operations at SPI (www.spi.com/shiloh), reveals the advantages of acting as a community in order to reap the rewards of data and insights transparency along the retail value chain.
What are the advantages of sharing data and insights?
Fogg: There are many advantages of sharing data between retailers and suppliers. The primary reason for data sharing is that it helps everyone sell more at retail and increase the bottom line. Not only should they share data both ways, but also any insights that they have been able to garner in the analysis of this data. In doing so, this collaboration begins to build a community — a retail community with common goals that include all partners along the retail value chain.
Sharing data is the first step in creating a solid bond that will allow for long-term collaboration and achievement of the common goal. It is very important to keep in mind that this is a two-way street, sharing has to go both ways and be constant. It includes the sharing of plans, domain knowledge, expertise, etc., so the community acts as a single entity with a unified mission.
Sharing will enable integrated planning and integrated execution across all the partners in the retail chain ultimately benefiting everyone, from the consumer to the retailer to the supplier and then to their manufacturers.
What are the potential challenges for retailer/supplier data sharing?
Fogg: In data and insight sharing, we are actually talking about joint/integrated business planning. Joint/integrated business planning is the “cool” thing to do now, but the reality is it’s not being done in earnest in very many situations. It requires process change up and down the retail chain. If the process doesn’t include the sharing of insights and knowledge to every point in the chain, the potential benefits are never realized. Joint business planning has significant long-term benefits, but you likely won’t see pay back in the first year if you don’t include, in fact require, integrated execution.
Joint/integrated execution is where every day processes are planned and executed in concert across the retail chain and partners. A few of the best organizations practice this today and have experienced huge benefits and a competitive advantage. You’ll need rapid response processes and you can’t rely on processes that are based on reaction alone. Shared operational data streams are critical in realizing the benefits but you can realize almost immediate return on the investment.
How else can retailers and suppliers gain a competitive advantage through sharing data and insights?
Fogg: Smart trust between partners is paramount to this change. This trust between partners has to be Smart Trust versus Blind Trust. Blind trust, trusting without thought and limits, is not sustainable. Give your trust to the right partners, with the right data, changing the right processes, and you’ll have truly sustainable improvement. Smart trust must include shared accountability, shared responsibility, and shared rewards. If you’re not willing to share in the rewards, you won’t build a community with shared goals. You’ll miss a shared community that can quickly respond to opportunities as soon as they arise.
What are the advantages of sharing data and insights?
Fogg: There are many advantages of sharing data between retailers and suppliers. The primary reason for data sharing is that it helps everyone sell more at retail and increase the bottom line. Not only should they share data both ways, but also any insights that they have been able to garner in the analysis of this data. In doing so, this collaboration begins to build a community — a retail community with common goals that include all partners along the retail value chain.
Sharing data is the first step in creating a solid bond that will allow for long-term collaboration and achievement of the common goal. It is very important to keep in mind that this is a two-way street, sharing has to go both ways and be constant. It includes the sharing of plans, domain knowledge, expertise, etc., so the community acts as a single entity with a unified mission.
Sharing will enable integrated planning and integrated execution across all the partners in the retail chain ultimately benefiting everyone, from the consumer to the retailer to the supplier and then to their manufacturers.
What are the potential challenges for retailer/supplier data sharing?
Fogg: In data and insight sharing, we are actually talking about joint/integrated business planning. Joint/integrated business planning is the “cool” thing to do now, but the reality is it’s not being done in earnest in very many situations. It requires process change up and down the retail chain. If the process doesn’t include the sharing of insights and knowledge to every point in the chain, the potential benefits are never realized. Joint business planning has significant long-term benefits, but you likely won’t see pay back in the first year if you don’t include, in fact require, integrated execution.
Joint/integrated execution is where every day processes are planned and executed in concert across the retail chain and partners. A few of the best organizations practice this today and have experienced huge benefits and a competitive advantage. You’ll need rapid response processes and you can’t rely on processes that are based on reaction alone. Shared operational data streams are critical in realizing the benefits but you can realize almost immediate return on the investment.
How else can retailers and suppliers gain a competitive advantage through sharing data and insights?
Fogg: Smart trust between partners is paramount to this change. This trust between partners has to be Smart Trust versus Blind Trust. Blind trust, trusting without thought and limits, is not sustainable. Give your trust to the right partners, with the right data, changing the right processes, and you’ll have truly sustainable improvement. Smart trust must include shared accountability, shared responsibility, and shared rewards. If you’re not willing to share in the rewards, you won’t build a community with shared goals. You’ll miss a shared community that can quickly respond to opportunities as soon as they arise.