Negotiating with customers and vendors – It’s not all about price

A foods product manufacturer sought means to better assess Customer performance in order to work collaboratively with customers to plan and improve performance

Problem:

  • Customer performance was generally based on margin and growth metrics leaving uncertainty as to opportunities for improvement

Focus:

  • Develop customer performance scorecard
  • Identify opportunities for focused improvement

Approach:

  • Core value-based performance measurement put in place
  • Customer performance scorecard established while also providing for hierarchical views to both sales reps and market channels
  • Assess performance across customers and identify points of opportunity

Result:

  • A long-standing customer was identified as performing well below target levels in cash flow and return.
  • Key drivers and relative impact of needed changes were assessed
  • Collaborative planning session held with Customer where performance metrics were shared
  • Alternatives assessed and collective plan to positively impact performance agreed upon

Alternative Impacts Assessed using “What-If” Value Calculator

Food Products Manufacturing