Case study: SPP / Margin Mix

Company overview:

  • FMCG categories
  • £300+m sales 
  • 150+ suppliers

Business challenge:

Supplier relationships had been reduced to tactical negotiations on an ad hoc basis driven by monthly fluctuations in sales performance. Suppliers were becoming frustrated by a lack of long term vision and alignment on realistic sales projections. 4c were contracted to build a plan to work more strategically with suppliers building partnerships and delivering value for both parties.

Our approach:

  • Arranged and held a supplier conference for 200+ suppliers within the first 4 weeks of engagement
  • Proposals requested from all suppliers with 150+ received and reviewed
  • Priority proposals shortlisted and evaluated, negotiations commenced and JBP’s agreed confirming promo activity, funding, NPD and sales / margin targets 

Value delivered:

  • 1.5% margin rate improvement in key FMCG category on £300m sales
  • Supplier relationships improved through more strategic way of working
  • Improved performance governance and target tracking reducing frustration and reactive, ad hoc investment requests