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Collaboration between retailers and manufacturers is very important to the success of the supply chain operation. This is because the collective work between the links benefits sharing of valuable information in real time.Thus, manufacturers can produce based on a more assertive demand forecast and retailers no longer experience product excesses or shortages on the shelves of stores and supermarkets.Understand in detail in this post why collaborative work has become so essential for operations in the current market.&nbsp;<h2>What is a modern supply chain?</h2>The supply chain is the set of processes, activities, people, and companies that make the market operate and ensure the product is produced, moved and can reach the end consumer. This cycle has undergone numerous changes in recent years and continues to change, due to the pace of consumers.If in the past processes were manual and of little strategic importance, there is currently no room for inefficiencies. Companies never stop, data is constantly generated, and the consumer always expects excellence.Therefore, we can say that the modern supply chain is based on technology. From production to product delivery to consumers, tools and software are involved. All this to ensure that the customer has their demands met at the proper location, quantity, and time.<h2>Collaboration prevents errors in the supply chain</h2>With a more robust and complex supply chain, it is of great importance that manufacturers and retailers learn to act collaboratively.In general, we must realize that these parties of the chain cannot operate in isolation. Because when the manufacturer does not know what is happening at the retailer, it cannot rethink its strategies and the whole process is compromised.Imagine that a specific product is missing at the point of sale or that demand is above normal. Since there is no information sharing, the manufacturer cannot scale the need for distribution of goods at the proper pace and quantity.Due to out-of-stock or excess, both the retailer and the manufacturer lose money and customers. After all, consumers will not find the product they are looking for on the shelf or companies will have slow-moving goods.Therefore, these links cannot work on their own, based on a push strategy. When the manufacturer just pushes products and the retailer just buys them thinking of discounts, the chain soon begins to break. It is imperative that they work together and adopt a distribution strategy based on consumption.<h2>5 benefits of collaboration between manufacturers and retailers</h2>As we’ve seen, this close relationship based on mutual help is what ensures good results for everyone involved.But in practice, what are the positive impacts of this approach? Check them out!<h3>1. Reduced out-of-stocks</h3>When these two links in the chain work together, eliminating out-of-stock becomes a much simpler goal to achieve. The manufacturer knows what it must produce and when it should replenish inventory at the retailer.<h3>2. Increased customer satisfaction and loyalty</h3>Evidently, if the product will always be available on the shelf, consumers will not face the frustration and inconvenience of not finding what they need. This is one of the main factors that contribute to customer satisfaction and loyalty.<h3>3. Higher sales volume</h3>Collaborating with each other, manufacturers and retailers start to sell and earn more. That is, everyone benefits and can increase their revenue, which is critical for survival and innovation in the market.<h3>4. Fewer inventory losses</h3>Once retailers can receive the right number of products from manufacturers, according to demand, the rate of obsolete items in inventory is reduced. This minimizes losses for both parties and ensures financial balance.<h3>5. Optimizes product assortment</h3>This relationship helps the retailer work with an appropriate product assortment because the manufacturer knows what is selling more and can identify slow-moving products. Thus, it can, for example, launch products more consistent with market demand, by monitoring the performance of products at the POS.<h2>Data sharing between manufacturers and retailers</h2>The key aspect of the collaboration between manufacturers and retailers is access to information on both sides of the chain and in real time. Data transfer is the foundation for a successful relationship.When retailers share sales information with the manufacturer, for example, the latter can apply actions at the point of sale and make everything work better. On the other hand, if retailers do not analyze this same information they will not know where to distribute.<h2>How does technology support collaboration between manufacturers and retailers?</h2>The entire collaboration process between manufacturers and retailers is based on sharing consumer data. But what to do with this information? The technology helps to interpret data and make it more granular, which can then be applied in several strategies. Actions will be more effective, with implementation based on data and visibility into the supply chain.One of the technologies is capable of providing managers with actual product performance information, helping manufacturers plan actions, increase inventory turnover, and identify good business opportunities. In addition to updating data daily, which facilitates and intensifies the results of sales strategies, the platform has a module that allows comparisons of category performance related to the market, further improving the distribution of your items.<h2>Product distribution solution</h2>Furthermore, there is a solution responsible for inventory replenishment in the internal chain based on demand, which is the <a style="color: rgb(34, 42, 53);" rel="noopener noreferrer" href="https://www.neogrid.com/en/solutions/drp">DRP (Distribution Requirements Planning)</a>. Through it, the manufacturer can optimize the purchase and distribution of products from consumer data shared by retailers. Thus, manufacturers can always react to the consumer pace, even when buying inputs for production.Another solution that prioritizes collaboration between the two links is <a style="color: rgb(34, 42, 53);" rel="noopener noreferrer" href="https://www.neogrid.com/en/solutions/vmi">Vendor Managed Inventory (VMI)</a>. This tool helps the manufacturer to manage the inventory of its products at retailers, based on actual consumption data sent directly from the POS. Thus, manufacturers automatically replenish products as levels move, without stores having to place orders.Collaboration between manufacturers and retailers in the supply chain is critical to process success. When the two links act in isolation and do not share information, the chances of errors, out-of-stocks and excess products on the shelves are much greater. Consequently, everyone loses.Do you want to improve your company's performance in the supply chain and understand how to promote this collaboration? Contact our experts and see what technology can do for your business.

Collaboration between retailers and manufacturers is very important to the success of the supply chain operation. This is because the collective work between the links benefits sharing of valuable information in real time.Thus, manufacturers can produce based on a more assertive demand forecast and retailers no longer experience product excesses or shortages on the shelves of stores and supermarkets.Understand in detail in this post why collaborative work has become so essential for operations in the current market.&nbsp;<h2>What is a modern supply chain?</h2>The supply chain is the set of processes, activities, people, and companies that make the market operate and ensure the product is produced, moved and can reach the end consumer. This cycle has undergone numerous changes in recent years and continues to change, due to the pace of consumers.If in the past processes were manual and of little strategic importance, there is currently no room for inefficiencies. Companies never stop, data is constantly generated, and the consumer always expects excellence.Therefore, we can say that the modern supply chain is based on technology. From production to product delivery to consumers, tools and software are involved. All this to ensure that the customer has their demands met at the proper location, quantity, and time.<h2>Collaboration prevents errors in the supply chain</h2>With a more robust and complex supply chain, it is of great importance that manufacturers and retailers learn to act collaboratively.In general, we must realize that these parties of the chain cannot operate in isolation. Because when the manufacturer does not know what is happening at the retailer, it cannot rethink its strategies and the whole process is compromised.Imagine that a specific product is missing at the point of sale or that demand is above normal. Since there is no information sharing, the manufacturer cannot scale the need for distribution of goods at the proper pace and quantity.Due to out-of-stock or excess, both the retailer and the manufacturer lose money and customers. After all, consumers will not find the product they are looking for on the shelf or companies will have slow-moving goods.Therefore, these links cannot work on their own, based on a push strategy. When the manufacturer just pushes products and the retailer just buys them thinking of discounts, the chain soon begins to break. It is imperative that they work together and adopt a distribution strategy based on consumption.<h2>5 benefits of collaboration between manufacturers and retailers</h2>As we’ve seen, this close relationship based on mutual help is what ensures good results for everyone involved.But in practice, what are the positive impacts of this approach? Check them out!<h3>1. Reduced out-of-stocks</h3>When these two links in the chain work together, eliminating out-of-stock becomes a much simpler goal to achieve. The manufacturer knows what it must produce and when it should replenish inventory at the retailer.<h3>2. Increased customer satisfaction and loyalty</h3>Evidently, if the product will always be available on the shelf, consumers will not face the frustration and inconvenience of not finding what they need. This is one of the main factors that contribute to customer satisfaction and loyalty.<h3>3. Higher sales volume</h3>Collaborating with each other, manufacturers and retailers start to sell and earn more. That is, everyone benefits and can increase their revenue, which is critical for survival and innovation in the market.<h3>4. Fewer inventory losses</h3>Once retailers can receive the right number of products from manufacturers, according to demand, the rate of obsolete items in inventory is reduced. This minimizes losses for both parties and ensures financial balance.<h3>5. Optimizes product assortment</h3>This relationship helps the retailer work with an appropriate product assortment because the manufacturer knows what is selling more and can identify slow-moving products. Thus, it can, for example, launch products more consistent with market demand, by monitoring the performance of products at the POS.<h2>Data sharing between manufacturers and retailers</h2>The key aspect of the collaboration between manufacturers and retailers is access to information on both sides of the chain and in real time. Data transfer is the foundation for a successful relationship.When retailers share sales information with the manufacturer, for example, the latter can apply actions at the point of sale and make everything work better. On the other hand, if retailers do not analyze this same information they will not know where to distribute.<h2>How does technology support collaboration between manufacturers and retailers?</h2>The entire collaboration process between manufacturers and retailers is based on sharing consumer data. But what to do with this information? The technology helps to interpret data and make it more granular, which can then be applied in several strategies. Actions will be more effective, with implementation based on data and visibility into the supply chain.One of the technologies is capable of providing managers with actual product performance information, helping manufacturers plan actions, increase inventory turnover, and identify good business opportunities. In addition to updating data daily, which facilitates and intensifies the results of sales strategies, the platform has a module that allows comparisons of category performance related to the market, further improving the distribution of your items.<h2>Product distribution solution</h2>Furthermore, there is a solution responsible for inventory replenishment in the internal chain based on demand, which is the <a style="color: rgb(34, 42, 53);" target="_blank" rel="noopener noreferrer" href="https://www.neogrid.com/en/solutions/drp">DRP (Distribution Requirements Planning)</a>. Through it, the manufacturer can optimize the purchase and distribution of products from consumer data shared by retailers. Thus, manufacturers can always react to the consumer pace, even when buying inputs for production.Another solution that prioritizes collaboration between the two links is <a style="color: rgb(34, 42, 53);" target="_blank" rel="noopener noreferrer" href="https://www.neogrid.com/en/solutions/vmi">Vendor Managed Inventory (VMI)</a>. This tool helps the manufacturer to manage the inventory of its products at retailers, based on actual consumption data sent directly from the POS. Thus, manufacturers automatically replenish products as levels move, without stores having to place orders.Collaboration between manufacturers and retailers in the supply chain is critical to process success. When the two links act in isolation and do not share information, the chances of errors, out-of-stocks and excess products on the shelves are much greater. Consequently, everyone loses.Do you want to improve your company's performance in the supply chain and understand how to promote this collaboration? Contact our experts and see what technology can do for your business.

How important is collaboration between retailers and manufacturers in the supply chain?

Why is collaboration between retailers and manufacturers in the supply chain so important? This is a critical matter for operations in the market.

Do you want to learn more?

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