At Sentinel, we are famous for working with suppliers to improve their commercial outcomes with retailers. We have taken this one step further by liaising with Tesco to help suppliers make educated choices on how they choose to work with or partner with Tesco.
It was in April 2017 that Sentinel Management Consultants launched the Tesco Supplier training one-day workshop. The focus of the workshop is to deliver training on the direction of Tesco’s buying organisation and how they make their decisions since the advent of ‘Reset’.
Through a series of simulated category exercises, delegates are immersed in the new tools and techniques enabling suppliers to better make their decisions on engaging with the changing Tesco organisation.
Whilst many suppliers are choosing to run closed door exclusive events in order to enable open discussion, this event works well in ‘open’ environment as the bulk of the training content is totally new to delegates and as such they absorb rather than transmit. The focus is more on working more effectively with Tesco rather than narrow competitive advantage.
During the workshop we do not take sides or push any negotiation engagement strategy or style – indeed that is not the objective. Tesco have said they want to focus more on developing profit by selling plans to their shoppers rather than combative buying techniques with the suppliers and there are many example of where they have showed they mean it. They are asking suppliers to act as business builders rather than hard bitten traders but recognise that negotiation will also be important.
The answer is to be skilled at both and approach the discussions with an open mind. Delegates have been asked to feedback their views on where Tesco have appeared to be trustworthy and open and also where they use have not.
Data from the first 100 delegates shows that there is an overwhelming evidence for this: for every example of negativity there are four examples of positives. Clearly it’s a journey but above all people, David Sables, the CEO of Sentinel, has called out the state of play in the past and as he has said, we have to be fair and call it out when its good too.
The techniques used by Tesco these days are fundamentally unique to them. These are geared to their customers aimed at getting them to not only return time and again but also to recommend Tesco shopping to others. Whilst other retailers have the ability to do something similar they would need the ability to consolidate smaller data source points into focused measures which can steer their decisions.
The workshop is equally applicable to private label and brand suppliers – in fact whilst the competitive edge of understanding the content seems obvious to brands its actually many of the smaller private label businesses that are getting the biggest wins in Tesco. This is not just due to the importance of differentiation for Tesco, its also because they have been quicker, more flexible and more trusting.
In short, no major retailer has ever provided this level of insight on their decision making and buying direction formally for suppliers before. We believe this ‘first’ gives a new direction for suppliers to effectively engage with the UK’s number one retailer and improve the opportunities for better outcomes, more of the time. It also reduces frustration on behalf of Tesco when they are confronted with suppliers who don’t understand their approach – and that in turn helps reduce tactical behaviour and less negotiation.
Evidence to date suggests that it is working – with suppliers recognising that they can tailor their approach to Tesco’s needs.
Next courses: Tuesday 12th September (Windsor), Thursday 2nd November (Windsor), and Wednesday 8 November (Manchester Airport) – £595 +VAT per delegate.
Find out more from Jason Tarry of Tesco and book your places
