Most global trading policies have evolved on an individual market basis and locally on a customer by customer basis. How much of your trade investment is defined as simply ‘the cost of trading’? If you don’t know how effective your trade spend is or the risk of exposure due to customer A acquiring customer B, the Axina 6 step process should help:
The current Tesco & Booker situation and potentially Asda & Sainsbury is nothing new.
With trade spend in some categories at 30% of revenues or higher, the Axina 6 step process provides a structured approach to evaluating all investments related to customers, identifying potential risk of exposure inefficiency and allowing quick comparisons between customers, or for the same customer in different markets:
AXINA – 6 STEP PROCESS
STEP 1. “AS IS” – Understand your current terms investments from Gross sales to Dead Net Price
STEP 2. Establish a vision for your terms investments with supporting principles & fundamentals
STEP 3. Identify potential RISK and opportunities to make TRADE TERMS WORK HARDER
STEP 4. Develop a performance related trade terms structure
STEP 5. Transition plan to new trade term structure
STEP 6. “TO BE” clearly defined execution plan
AXINA – “Accelerating growth through efficient trade investments”
The proven Axina 6 step process has added significant value to numerous global / local suppliers in both established and emerging markets with the following results…
- Terms exposure reduction
- Trade investments efficiency
- Profit growth acceleration
NB: Axina can provide a data capture and simulation tool to support suppliers .
Ultimately the process drives accelerated growth by ensuring efficient, consistent, defendable and conditional investments.
