How do we unlock true value across the value chain?
28 February 2022Explore IGD’s framework to unlock shared value across organisations, customers and shoppers.
Did you know?
Only 1 in 4 joint business plans create true value? 1
Traditional levers for unlocking value are at saturation point
Collaborative relationships are under strain, driven by cost pressures
It is easy to give value away for free
We can’t create value alone.
It can be helpful to think about value through three lenses: your own organisation, the customer, and then both. It’s easiest to start with your own organisation, what are the levers that you (or your team) can pull that will drive change? Then, think about the customer, what does your retailer value?
Once you’ve done that, you can begin to identify the sweet spots. (Think of this like a Venn diagram, showing the logical relation between the two) If our value initiatives don’t benefit the shopper, then what is the point? We need to be considering if our value levers can lead to better value for shoppers, extra days life or better sustainability credentials perhaps.
IGD’s value creation framework
IGD have worked with a number of manufacturers on this topic, helping them to define what levers for collaboration are available in their organisation and provide a route to unlocking it. We’ve identified 16 common levers that supply chain teams can work with their customers on to unlock joint value. This interactive framework also operates as a practical tool to help your teams get started in this area.
We offer a facilitated process, taking your organisation on a journey that will help you recognise and capture your levers, identifying improvement areas that will help your team take practical next steps that will drive real change.
Next steps
Three killer questions to ask of your organisation:
Is your perception of value shared with your customers perception?
Where do you give value away for free?
Do you know what your value levers are?
If you’re struggling to answer these questions, we can help. The IGD solutions team have a wealth of experience in helping organisations define their value levers across their value chains to support commercial negotiations and unlock efficiencies. For more information contact [email protected].
1 Source: Bain, Neilsen Global Connect, “Growing the joint profit pool of retailers and manufacturers in Europe