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1,2009 NEGOTIATIONPrepare, Lead and Follow-up negotiations,2009,MASS MARGIN,%,X,=,SALES,Contract,SIMPLE EQUATION,Check out,Cashier TG, Coolers,Display,Main promotion display,Secondary display,TG+ TG Podium Promotion Table On-shelf promotion,Mini stand Auto walk Sidekick Pillar Cross Merchandising,Only %,Fix,Fix or %,FEES TRANSFER FOR ALL SUPPLIERS,4,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 Focus 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 reactions,Intro : Key points of the 2009 negotiation project,Power is not revealed by striking hard or often, but by striking true,5,Identification of Supplier Cluster,Profitability,Sales Share,Identification of Supplier Cluster,TOP 10 LIAONING - SUNDRY,7,Supplier relations Strategy,JBP : “Win Win” : Sales and Mass Target,All 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 possible,.,8,NEGO CLUSTER 1,TG FEES TRANSFER + IMPROVEMENT OF BM PRIOR TO ANY SALES DEVELOPMENT DISCUSSIONS,BASIC OFFENSIVE NEGO,Pay first, grow sales after,9,NEGO CLUSTER 2,Market share,Carrefour support,Negotiating levers:,TG FEES TRANSFER IN %,Information is Power,Level of profitability,Delivery Services,COMPETITION between SUPPLIERS,10,NEGO CLUSTER 3,TG FEES TRANSFER + IMPROVEMENT OF CAT. PROFITABILITY MIX,Priority on SALES growth,11,NEGO CLUSTER 4,STILL NEGO BUT LESS TIME IN NEGO , MORE ON SALES FOCUS,FOCUS ON SALES AND MASS MARGIN APPROACH,12,VALIDATION OF 2008 LANDING,1st Meeting,13,Objective : Identify the basis of 2009 Negotiation,Validation of 2008 Landing : clear base for 2009 Nego25 2008 Purchases Landing forecasts Appending / TG Fees landing (the supplier speak first) 2009 Development plan of supplier : listen to supplier25 Market evolution, trend, Market share objectives, innovations to come etc Business plan expected with Carrefour : assortment, DM, Purchase prices evol., etc 2009 Sales and purchases forecast ? Expectation 2009 Carrefour Strategy 10 Reminder of Total MASS margin approach, Fees transfer Expansion plan confirmation,Real Nego will start during following meeting the week after,14,2009 CONTRACT REQUEST,2nd Meeting,15,Objective : Clear Request with justification,Supplier makes its first proposal 30 CRF raises and explain its request for 2009 business 30 Reminder of Carrefour Services excellence 2009 Purchases forecasts, big picture of potential business plan 2009 Operating costs increase /No other choice than increase of Unc. RB Reminder of Total MASS margin approach, Fees transfer Points agreed and to be further negotiated 30,16,Typical progression of a negotiation with a supplier,Landing 08 validation + Supplier 2009 Business plan orientation,Week 1 : Meeting 1,Terms proposals from supplier And CRF,Counter-argument of the supplier,W3 M3,Output,Intensification of the position of Carrefour by new calculated arguments Level of TG % transfered must be validated at this stage,The supplier has to redefine a proposition,Lead the negotiations,W2 M2,Supplier revised proposition,W4 M4,Output,Contract should be concluded at this stage,Signing the contract OR Negative scenario,3,4,17,Supplier Final proposal,W6 M5,Output,Presentation of the FINAL proposition of the supplier Contract conclusion OR Implication of Top Management,The Supplier leaves with a final compromise proposal Or T2T Meeting,T2T Meetiing,W7 M6,Output,Conclusion of the agreement (contract) OR SAP / NO CNY planification,Signing the contract OR SAP,Typical progression of a negotiation with a supplier,Lead the negotiations,18,Conducting 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 (positive/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 one,COMMUNICATION,Show strong determination and no room for hesitation Show confidence in Carrefour strategy Acting in 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 supplier,19,NEGOTIATION SHEET,UPDATED,GUARANTEED,NON G.,20,THE NET NET PURCHASE APPROACH,21,Price Increase Renegotiation,10%,BM,9%,BM,WHICH RETAILER IS MORE PROFITABLE FOR P&G ?,
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