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How consistency of approach delivered £400k of value

The Client  

Total Negotiation Group’s client is a global FMCG manufacturer. In one geography, the market was changing more rapidly than in many other markets, so they needed to be quick in their decision making while avoiding a disjointed approach across accounts and sectors.   

Their Challenge 

The client had historically invested significantly with major key accounts. While both accounts were important and still profitable, neither were engaging closely with the client. Additionally, one was requesting increased investment while the other, unwilling to enter into new trade terms discussions, for the first time, handed over responsibility for negotiations to their procurement team  

Objectives of the engagement 

Our client took the opportunity to review what they wanted to achieve both in this sector and through these accounts and to draw up very specific volume, profit and share targets in return for investment. They were keen to re-establish the principles of conditional trade investment 

The solution 

Total Negotiation Group worked with the account teams to design an engagement strategy with clear commercial outcomes. Whilst building capability, commercial discussions were also being managed and advanced through direct support and coaching.  

Outcome 

In one account, the client realised savings of approximately £1.3m per annum in terms and discounting by walking away at the end of the term’s negotiation period.  

Investment was restructured in the second account to support specific and targeted marketing activities. More than £100k was saved and additional levers will translate into incremental volume and profit wins. 

Future 

The client continues to use TNG services extensively to review commercial strategies, build capability and support ongoing challenges with customers with direct coaching.

 

 

 

 

 

 

 

 

 

About the author

Total Negotiation Group