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Oct. 7, 2022
Data Monetization: How to Get More Benefits from Partnership with Suppliers?
Data Monetization: How to Get More Benefits from Partnership with Suppliers?
Alla

Alla

PhD, Financial consultant at Datawiz

How to establish beneficial cooperation with the supplier?

 

Dealing with suppliers is a strategically important area for each retailer. After all, timely deliveries, favorable purchase prices, and quality products are necessary conditions for the chain's success.

 

Competent cooperation with suppliers allows the chain to:

✅ increase the average bill by ↑ 11.2%;
✅ expand the client base by ↑ 5-7%;
✅ increase the frequency of visits by ↑ 14%;
✅ expand the size of the shopping cart by ↑ 8-13%.

 

Rules for effective cooperation with suppliers

  • Transparency of relationships. The supplier and the chain must have the same data about sales dynamics, stocks at the store, and the supplier's share in sales. It will allow each side to find the right arguments for a successful negotiation campaign and establish further cooperation.

 

  • Common goals and insights. The suppliers should be your partners first. Their profit depends on your success and vice versa. Therefore, it is necessary to set common goals, monitor their achievements, and look for ways to solve problems through joint efforts.

 

  • Clear agreements. Any communication should end with fixed agreements. Thus, each party will know what products, their quantity, and prices will be delivered, and how quickly they will be paid. This allows the supplier and the chain to plan their business and establish key development milestones.

 

  • Responsible fulfillment of obligations. Interaction with the supplier should be based on mutual responsibility. That is, both parties must fulfill their obligations in time. So, the supplier must guarantee the timely delivery of quality products in the right quantity and with the best prices, and the chain must ensure compliance with the terms of order payment.

 

 

A separate Data Monetization module has been created on the BES analytical platform. It helps you share valuable information with your partners.

 

What is Data Monetization?

Data Monetization is a platform for selling analytical data to suppliers. The daily chain data (sales, goods, stocks, promotions), that are systematized and grouped in one place, can be accessed by suppliers on a paid basis. 

This platform contains:

  • more than 30 interactive reports;
  • 300+ metrics;
  • the ability to create your dashboards according to the chain data.

Data Monetization is a powerful solution that can bring up to 2.5% incremental revenue from suppliers and increase network EBITDA.

This solution will help suppliers to control the availability of products in the stores of your chain, competently manage the assortment, predict out-of-stock, improve the quality of service, and implement effective promotional techniques.

 

 

How does it work for the chain and supplier?

Fast and easy connection to the service is one of the main advantages of Data Monetization.

A description of the collaboration between the chain and the supplier is presented in the table:

The chain and supplier Interaction in Data Monetization

The chain
The supplier
 Chain managers determine what data needs to be granted access
 The supplier pays for the ability to use and evaluate chain analytics
➁ Managers create a personal account for each supplier
 Supplier employees get access to personal accounts on the BES platform
 The chain provides the supplier with paid access to data/packages on the BES platform
 Platform reporting allows employees to analyze data on sales, products, receipts, stocks, promotions, and loyalty program data daily with the ability to create dashboards that will be updated daily.
 The chain gets paid by the supplier for using analytics
 Chain managers review supplier activity on the platform: what reports/metrics, and how often do they review?
Supplier managers figure out:
  • how intensively their products are being sold;
  • what products should be delivered soon to avoid out-of-stock;
  • how to manage inventory to increase sales

 

Data Monetization benefits for the retailer

 

🎯 Convenient, simple, and modern tool. All the data that needs to be provided to the supplier are already structured and collected in one place. Chain managers only need to create individual packages and provide access to them to suppliers with flexible restrictions: by stores, categories, brands, SKUs, periods, and reports.

 

🎯 Connection speed. The whole process of providing access to suppliers takes 5-10 minutes, after which all data will be updated daily.

 

🎯 Monitoring of each supplier activity on the service. The retailer can explore what areas the partner is interested in, what indicators, and how often they analyze them.

 

🎯 Transparency of relationships with suppliers. By providing sales data, the chain and supplier will have the same insights to help both parties find the right arguments for a successful negotiation campaign. This will help build a mutually beneficial business.


🎯 Incremental passive income. Data Monetization provides up to 2.5% additional revenue from suppliers, depending on the data package that the chain owner shares with suppliers.

 

 

Convince yourself from your experience that interaction with suppliers using BES.Datawiz can be built as transparently and mutually beneficially as possible. 

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