‘TNG was engaged by our multi-national FMCG client to provide capability build and negotiation consultancy as they entered a number of important trade terms discussions with major retailers.’
The Client
An international FMCG supplier operating in a wide range of global markets including both modern trade and traditional trade environments. Not always the market leader, they trade strongly.
Their Challenge
Global retailers can be challenging in trade terms negotiations. Our client wanted to ensure that all their agreed trade terms were conditional and rewarding to both parties thus encouraging positive and profitable behaviour. This had not always been possible in the past.
Objectives of the engagement
- Ensure team were confident and prepared for the forthcoming negotiations.
- Develop detailed and thorough plans for all the major retailers.
- Role-play the negotiations, share feedback, and seek internal alignment
The solution
TNG designed a tailored workshop over 4 days to reflect all the identified challenges and the current market conditions. This was reinforced by challenging review sessions to test the preparations and finally filmed role plays to recreate the actual negotiations.
Outcome
Within 6 weeks of the workshop conclusion, two major negotiations had been successfully concluded. Estimated incremental value achieved is approximately $700k already.
In addition, these two big wins have created more confidence for the other negotiations and increased perception of power
Future
TNG will continue to support the client through ongoing commercial coaching in the remaining negotiations and in the implementation of the two big wins.
About the author
Total Negotiation Group