Why Grocers Are Implementing Single-Source Retail Service Providers
Not long ago, retailers relied heavily on a whole ecosystem of CPG category leaders, field teams, third party brokers, and merchandising companies to plan their layouts and execute new planogram sets in a timely manner.
However, as retailers started to search for new ways to improve the in-store shopping experience the single source retail service provider program emerged. This new program allows the retailer to select a single service provider that provides the in-store personnel to execute all sets in place of the complex ecosystem. Additionally, Retailers would charge a fee to CPG companies for those services regardless.
In a single source model the brokers and merchandise companies are no longer allowed to visit the store to merchandise the shelves. However, CPG direct field teams are still authorized to visit the stores but are faced with the dilemma of incurring duplicate costs or allow an indirect merchandiser to stock their products and execute additional marketing investments such as promotions and displays.
Benefits Of A Single Source Retail Service Provider Program To Date
- Increase Customer Shopping Experience
- Improve Shelf Presentation & Compliance
- Increase Trips Drivers by gaining a better understanding of the customer
- Improve Speed to Market Execution
- More Consistent Retail Execution
- Optimize Assortment
Additional Questions and Concerns From Manufacturers & Suppliers
- Measuring Proper Execution of Promotion
- Regulatory Rules of Certain Categories such as Alcohol and Tobacco
- Account Managers Have Reduced Eyes at the Shelf
- Multiple Reporting Formats to Review and Analyze
- Lost Opportunity to Sell New Inventory at Store Level
As we move into 2018 there’s still much to be seen as grocers and suppliers work out the single source model.