Let’s face it, no one is an expert in every aspect of retail. This harsh reality is based on the wide range of factors that influence a retailer’s success, from the business’s product assortment and marketing to the weather outside and stock market fluctuations.
The key to conquering these diverse challenges and maximizing success is collaboration. While you may not be an expert at predicting inflationary changes, supply chain issues or other disruptions, there is someone (or something, in the case of technology) out there that can. Collaborating with knowledgeable partners will result in the best outcomes. Let’s dive into the importance of partnerships and best practices for navigating them.
Teaming Up To Fight New Challenges
The retail industry has undergone a significant transformation in the last three years. According to Insider Intelligence, ecommerce sales hit a record high in 2020 at 36.4% year over year (YOY) growth as consumers were forced to shop from home as a result of the pandemic. But now in 2022, U.S. ecommerce sales growth has dropped to 9.4% YOY, the slowest growth rate since 2009. Part of this change can be attributed to rising prices. In October 2022, Deloitte’s Global State of the Consumer tracker reported that 73% of consumers are concerned about inflation, particularly at grocery stores, restaurants and apparel companies. One solution to offset this challenge is for retailers to partner with local brands to cut back on delivery costs and decrease the price customers see. Or they can partner with pricing and promotion experts to limit inflation’s impact on the customer’s total spend.
Similarly, as shoppers are returning to the store, retailers should prioritize partnerships that can keep shelves stocked despite supply chain challenges or weather disruptions. This might require diversifying fulfillment partners to ensure in-store stock never wavers.
Managing Partnerships To Foster Ongoing Success
Even the most strategic partnerships require routine maintenance. The best way to ensure both parties are satisfied with their agreement is to create dynamic policies with real-time insights. gicom offers an Agreement Negotiation Workbench which gathers historical data from previous agreements. This feature makes it easy for negotiators to access the details they need to strengthen their position. The workbench is also equipped with real-time simulations that help negotiators prepare for unexpected events.
Another useful gicom tool is the real-time margin calculator. With the calculator, retailers can adjust partnership details and strategies when disruptions arise. This solution gives retailers access to key figures that impact decisioning like margins, condition revenues and more, all in one central dashboard. Up-to-date information can help retailers comparison shop across potential partners and update condition requirements based on new developments in the industry. Managing partnerships doesn’t have to be difficult. With gicom, the entire process is automated and optimized to ensure both parties receive the support they need to navigate today’s diverse challenges.
gicom Makes Collaboration Easy
Let’s move forward together. gicom’s advanced solutions simplify the agreement lifecycle and foster successful partnerships that can weather any storm (literally or figuratively).
Contact us today to see how gicom can help your business create a flexible culture of collaboration and innovation.