International purchasing alliances are becoming stronger and stronger. After the Dutch retailer Jumbo announced a new collaboration with Everest and Epic Partners in September 2023, Ahold Delhaize has signed an angreement to join Eurelec - both to strengthen their international buying power in Europe. Everest & Eurelec confirmed that in the future they will integrate negotiations for their new members with the major brand suppliers. Following approval of the plans by the antitrust authorities, preparations for this are to begin next year and joint purchasing is expected to take place from 2025. In this content, manufacturers should be able to answer the following questions:What are the overarching advantages and disadvantages of cooperation or non-cooperation with international purchasing groups and discounter? What are the key elements for a long-term joint value creation? What are the key process steps to create internal transparency and to establish a defensible pricing and trade terms policy across markets? Where should the path lead = list price-, net-net price harmonization and/or European floor price corridors? Where are the profit traps and where are the opportunities?
CONTENT
Understanding of International Buying Alliances
- Main purchasing groups and their specific focus
- Retailers' priorities and suppliers' opportunities
- Best practice examples and worst-case scenarios
- Future outlook of retialer alliances
Negotiating with International Buying Alliances
- Potential business driver for international agreements
- Potential agreement structure
- Handling of "back to home" terms
- Prepatation of negotiation strategies, includinig escalation scenarios
- The Eurelec "way of working": Practical example
Considerations on European Pricing
- p4p based pricing and trade term systems
- Internal pricing transparency
- Country specific vs. harmonized prices
- European price-lists!?
How to win with brand at Lidl & Aldi
- Key facts and priorities
- Retailer winning strategies
- Product sizing and pricing tactics
- RSP risks & opportunitiesoSupplier implications and and considerations
- Recommendations for suppliers