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1、12009 NEGOTIATIONPrepare, Lead and Follow-up negotiations2009MASS MARGIN%X=SALESContractSIMPLE EQUATIONCheck outCashier TG, CoolersDisplayMain promotion displaySecondary display TG+ TG Podium Promotion Table On-shelf promotion Mini stand Auto walk Sidekick Pillar Cross MerchandisingOnly%FixFix or %F
2、EES TRANSFER FOR ALL SUPPLIERSPROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVE4 Priority on sales and CM Margin value increase 2009 ambitious investments plan will accelerate sales growth Accelerated Sales Growth will bring additionnal Mass of Margin Simplification of national contract is required Fo
3、cus on % rebates is required Negotiation strategy must be adapted to supplier cluster Good preparation is key for success The preparation of negotiation will bring more professionalism in our demand The application of training will allow us to better anticipate the suppliers reactionsIntro : Key poi
4、nts of the 2009 negotiation projectPower is not revealed by striking hard or often, but by striking true5Identification of Supplier ClusterProfitabilitySales SharePARTNERSHIPPROFITABLE GROWTHFOCUS ON SALES GROWTH OFFENSIVE BM NEGOIdentification of Supplier ClusterTOP 10 LIAONING - SUNDRY7Supplier re
5、lations StrategyJBP : “Win Win” : Sales and Mass TargetAll initiatives focused on sales (VIP Items, specific promotion mechanism, shortages follow-up, etc.)Traditional Nego for improvement of “Back Margin”2009 Nego approach / JBP is possiblePROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVE.8NEGO CLUST
6、ER 1TG FEES TRANSFER +IMPROVEMENT OF BM PRIOR TO ANY SALES DEVELOPMENT DISCUSSIONSBASIC OFFENSIVE NEGOPay first, grow sales afterPROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVE9NEGO CLUSTER 2Market shareCarrefour supportNegotiationSupplier BookNegotiating levers:TG FEES TRANSFER IN %Information is P
7、owerPROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVELevel of profitabilityDelivery ServicesCOMPETITION between SUPPLIERS10NEGO CLUSTER 3TG FEES TRANSFER+IMPROVEMENT OF CAT. PROFITABILITY MIXPriority on SALES growthPROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVE11NEGO CLUSTER 4STILL NEGO BUT LESS TIME
8、 IN NEGO , MORE ON SALES FOCUSFOCUS ON SALES AND MASS MARGIN APPROACH100(CM of last year)Sales GrowthFEES SYSTEMNo impact of sales for more CM ValueCM Value = 120100(LY)MASS MARGIN APPROACHCM Value coming from add. salesNEGO IN % NEED FOR MORE SALES TO GET MORE MASS MARGINFocus on FEESNEGONEGO % Sti
9、ll Nego but in %Sales Growth3020CM Value = 130PROFITABLEGROWTHPARTNERSHIPSALES FOCUSOFFENSIVE12VALIDATION OF 2008 LANDING1st Meeting13Objective : Identify the basis of 2009 NegotiationValidation of 2008 Landing : clear base for 2009 Nego252008 Purchases Landing forecastsAppending / TG Fees landing (
10、the supplier speak first)2009 Development plan of supplier : listen to supplier25Market evolution, trend, Market share objectives, innovations to come etcBusiness plan expected with Carrefour : assortment, DM, Purchase prices evol., etc2009 Sales and purchases forecast ? Expectation2009 Carrefour St
11、rategy 10 Reminder of Total MASS margin approach, Fees transferExpansion plan confirmationReal Nego will start during following meeting the week after142009 CONTRACT REQUEST2nd Meeting15Objective : Clear Request with justificationSupplier makes its first proposal 30CRF raises and explain its request
12、 for 2009 business 30Reminder of Carrefour Services excellence2009 Purchases forecasts, big picture of potential business plan2009 Operating costs increase /No other choice than increase of Unc. RBReminder of Total MASS margin approach, Fees transferPoints agreed and to be further negotiated 30 16Ty
13、pical progression of a negotiation with a supplierLanding 08 validation+Supplier 2009 Business plan orientationWeek 1 : Meeting 1Terms proposals from supplierAnd CRFCounter-argument of the supplier W3 M3OutputIntensification of the position of Carrefour by new calculated arguments Level of TG % tran
14、sfered must be validated at this stageThe supplier has to redefine a proposition Lead the negotiationsW2 M2Supplier revised proposition W4 M4Output Contract should be concluded at this stageSigning the contractORNegativescenario 3417Supplier Final proposalW6 M5OutputPresentation of the FINAL proposi
15、tion of the supplier Contract conclusionOR Implication of Top ManagementThe Supplier leaves with a final compromise proposalOrT2T MeetingT2T MeetiingW7 M6OutputConclusion of the agreement (contract)OR SAP / NO CNY planificationSigning the contract ORSAPTypical progression of a negotiation with a sup
16、plierLead the negotiations18Conducting negotiations : Key sucess factors PREPARATION Being adequately prepared : - Having maximal knowledge of the supplier - Communicating coherently the key points of a file to the supplier Mastering Carrefour different levers - Preparing alternative scenarios (posi
17、tive/negative) - Preparing a strategy with some compromise - Use efficiently the time by not waiting too long for supplier answers - Planning the next meeting at the end of previous oneCOMMUNICATION Show strong determination and no room for hesitation Show confidence in Carrefour strategy Acting in
18、a gentle, patient and smooth manner but with determination Have clear ideas when presented to supplier Good Listening to the other party (will give new nego ideas) Asking questions : learning about the supplier19NEGOTIATION SHEETUPDATEDGUARANTEEDNON G.20THE NET NET PURCHASE APPROACH21Price Increase
19、Renegotiation 10%BM9%BMWHICH RETAILER IS MORE PROFITABLE FOR P&G ?22Price Increase Renegotiation 10%BM9%BMWHICH RETAILER IS MORE PROFITABLE FOR P&G ?NPP = 10NPP = 923Price Increase Renegotiation 10%BM9.00RMB8.19RMBNET NPPNET NPP9%BMMargin value = 1.0Margin value = 0.81More profit for P&GNPP = 10NPP
20、= 924Price Increase Renegotiation IMPACT OF PRICE INCREASE ON OUR PROFITABILITY10%BMPrice Increase : +10%NPP = 10New NPP = 1111%BM = +1ptMargin value = 1.0Margin value = 1.21WHO GETS MORE VALUE FROM PRICE INCREASE ?25Price Increase Renegotiation IMPACT OF PRICE INCREASE ON OUR PROFITABILITY10%BM9.00
21、RMBPrice Increase : +10%NPP = 10New NPP = 11NET NPP11%Margin value = 1.0Margin value = 1.21BM = +1pt26Price Increase Renegotiation IMPACT OF PRICE INCREASE ON OUR PROFITABILITY10%BM9.00RMBPrice Increase : +10%NPP = 10New NPP = 119.79RMBNET NPPNew NET NPPREAL VALUE SHARING11%0.210.79CarrefourSupplier
22、Margin value = 1.0Margin value = 1.21BM = +1pt27Price Increase Renegotiation WITH A FAIR SHARE of 50% OF VALUE CREATED 10%BM9.00RMBPrice Increase : +10%NPP = 10New NPP = 119.50RMBNET NPPNew NET NPPREAL VALUE SHARING13.6%New BM= +3.6 pt0.50.5CarrefourSupplierMargin value = 1.0Margin value = 1.502009 NEGOTIATIONS POTENTIAL+4.50%Price increase : +6%Share50%+3.00%Paper increase : +20%Operating cost/m2:+10%General DiscountCost=0.50%+1.50%Cost=1.00%29Conclusio
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