Securing shelf space at big retailers is a must for distributors and manufacturers, as explained in “Understanding the process of selling in big retail chains”. The problem is that more and more supermarkets are using complex portals to manage the relationships with suppliers, forcing vendors to hire dedicated resources to manage and keep updated with the portals. As an alternative, many companies are outsourcing the management of big retailer portals. In this article, I explore why outsourcing has become a compelling solution for distributors and manufacturers.

The Growing Complexity of big Retailer Portal Management

Managing big retailer portals is no longer a straightforward task. Several factors contribute to the growing complexity:

Lack of standards among retailers: All retailer portals are designed specifically for each retailer. This means that you have to master as many portals as big retailers you have. Doing this with internal resources implies a Portal management Department with several employees.

Diverse Retailer Partnerships: Retailers often deal with multiple retail partners, each with its unique portal system. For example: invoicing and payment portal, order management portal, Cost, Price and promotions portal, etc. Keeping track of and managing these diverse systems within each retail chain can be overwhelming.

Compliance Requirements: Retailers frequently update their compliance and documentation requirements. Staying current with these changes demands dedicated resources and expertise. For example, in October 2022, Walmart updated its online complaint form, streamlining the process by reducing required fields and offering more submission options and better visibility to make and follow complaints.

Real-Time Data Updates: The need for real-time inventory management and order processing adds a layer of complexity, making manual management increasingly impractical.

Benefits of Outsourcing Portal Management

Outsourcing the management of big retailer portals offers a range of benefits that can help businesses growth in big retailers with a minimum cost. These are some of the benefits:

Easy Access to Expertise: Access to outsourcing providers specialized in portal management that stay updated with the latest industry best practices and changes in compliance standards.

Reduce the time to start selling to big retailers: The knowledge of the functioning of the portals and the right persons handling the different product categories significantly reduces the time to be registered in the portals and start selling. This is a very important benefit since some retailers have time lapses to register new vendors and /or products.

Increased net profit: The increase in sales stemming from selling in a new chain, while reducing the workload costs on internal staff, result in significant increase on profits.

Time Efficiency: Freeing up internal resources to focus on core competencies allows businesses to operate more efficiently and productively.

Scalability: Outsourcing providers can adapt to handle fluctuations in workload and support new retail partnerships seamlessly.

Case Studies

These are a few examples of the benefits that some of our customers have had by outsourcing the retailer’s portal management.

  • Company A could recover more than 80% of long overdue accounts receivable by outsourcing A/R portal management of Retailer 1, and there have had no lost receivable since then.
  • Company B, a produce distributor, had not been able to sell their products in one of the biggest food chains. A few months after outsourcing the portal management, they got a vendor number and were able to bid and win in a yearly contract. The total sales increased in nearly 1 million per year.
  • Company C increased their sales in Winn-Dixie in 200% by being able to manage the TPRs in the stores after outsourcing the portal management of this retailer.

Choosing the Right Outsourcing for Big Retailer Portals Management

Selecting the right outsourcing partner is critical for a successful portal management strategy. When evaluating potential partners, consider the following criteria:

Big Retailer Portals selection criteria

Strategies for a Successful Outsourcing Partnership

To make the outsourcing partnership successful, adopt the following strategies:

Clear Communication: Maintain open lines of communication with the outsourcing provider. Regularly discuss goals, expectations, and any challenges that may arise.

Collaborative Approach: Work closely with the outsourcing partner to define objectives and strategies for managing portals effectively. Treat them as an extension of your team.

Regular Updates: Request regular reports and updates on portal performance, compliance, and any issues that need attention.

Continuous Improvement: Encourage feedback and adjustments for ongoing improvement. Regularly assess the outsourcing arrangement to ensure it aligns with your business goals.

Promoting USA and Big Retailer Portals Management

Outsourcing the management of big chain portals has become an attractive option. The benefits, including expertise, cost savings, and scalability, make it a compelling choice. However, selecting the right outsourcing partner and maintaining a collaborative approach are essential for success. Portal Management is part of Promoting USA Sales Services.  If you want to learn more, give us your information to schedule a meeting.

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I hope this article about Big Retailer Portals has been helpful. I will continue to post information related to trade channel management, general economy and market trends. If you are interested in this article or want to learn more about Promoting USA, please subscribe to stay updated on future articles.

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