Old methods of pushing products through the pipeline, from manufacturer to wholesaler and distributor to a brick-and-mortar retail location, is shifting. Increasingly, manufacturers are nurturing direct relationships with the consumer via social-media communities as well as through eCommerce.
The strategy (“pull through”) also focuses on the retail store itself. Ultimately, the message is crafted to influence consumers at the point-of-purchase, relying on branding as a top priority.
For the retailer, this turns their attention away from general in-store displays to enhancing these brands.
“This “pull-through” strategy increases the power and brand equity of the supplier while decreasing the position strength of the retailer. This dynamic is evidenced by JC Penney, which positions itself as a storefront for an entire portfolio of supplier brands. Whereas before the retailer owned the relationship with the consumer, the relationship is now shared between the retailer and its suppliers.”
Retailers turn more to ‘analytics.’
Granted, the path from materials to finished goods can be strewn with many obstacles, so the idea of relying on data analytics—machine learning—may remain too cutting-edge for a lot of retail business owners.
As such, it may be little surprise that retailers still turn to their spreadsheets to glean information about their customer base. In fact, according to one survey, a little over 70 percent rely on these legacy methods as their main analytical tools.
MS Dynamics GP provides a single database management system that not only streamlines accounting procedures, but allows retailers the ability to search for value among their suppliers for more leverage in their local marketplace.
Contact us to learn more about MS Dynamics GP and the rest of our ERP solutions. Ask for a free demo.
Written by J.K. (Sales Team)