Procter & Gamble is pushing for deeper, longer-term planning with retailers, with CFO Andre Schulten saying the strongest partnerships should extend beyond annual margin negotiations to three-year plans spanning retail media, in-store activation, innovation and supply chain operations.
Speaking this month at the Barclays Global Consumer Staples Conference, Schulten said those relationships work best when P&G and its retail partners first agree on a shared mission to grow the categories in which the company competes.
"Then it becomes, OK, what's the breadth of the value creation chain that we have available to us," Schulten said.
That can open the door to a much broader set of conversations around how the manufacturer and retailer jointly drive growth.
Beyond a margin conversation on P&G's products, it's about innovation, he said. "It is on media spending and media activation. It is how we bring the product to life in-store and online. It's about the supply chain cost and the supply chain reliability and quality. Then, suddenly, you have a different conversation because you can create more value across a broader set of measures."
That enables the partners to created not a ...