Chicken or Egg?

by Abe Sherman – CEO, BIG – Buyers Intelligence Group

January 17, 2023

If you are following us on LinkedIn or Facebook, you may have noticed the steady stream of new BIG Network™ vendor announcements over the past couple of years. As of today, we have about 90 brands in the network with more on the way!

The success of the BIG Network is directly related to three things. Retailers are insisting that their suppliers participate in the BIG Network to help them analyze and improve their brand in the retailer’s stores. Brands are insisting that their retailers participate to better understand what’s happening at retail and how to adjust the merchandise mix and inventories for their customers, not to mention keeping better track of their memo goods. And finally, the extraordinary BIG team that works diligently with each brand to onboard and map retailer’s data to vendor collections and train their team to understand how to use the Balance to Buy™ system.

Retailers are not just willing to share their sell-through and on-hand information with their suppliers, but they are insisting that their suppliers participate in the process. Unfortunately, not all who should be benefiting from this dramatic change in the industry’s former “close to the vest” history are receiving the benefits that are available.

It’s a mystery to us why some suppliers/vendors are not using the data to better understand what’s happening in the retail stores. The reason the shelves are full at your favorite supermarket is because the brands show up and fill in the shelves! Every day, data flows from cash registers to home offices, to distribution centers, to those responsible for fulfillment. It is a finely honed process where everyone in the supply chain participates. If not, the result is empty shelves in some areas and overstocked, out of date goods in other areas. However, we see those results in jewelry stores every day.

Speaking of the supermarket reminds me of a parable I heard many years ago of the differences between the chicken and the egg when making an omelet. Although the chicken may be involved, the egg is committed!

Retailers, just because your suppliers are receiving your data from the BIG Network, if the sales reps or home office is not analyzing your sales and inventory and coming to you with suggestions for how to improve your business together, I would say they are involved but not committed. Encourage your reps to come to their appointments with Category/Price-Point reports as well as Style Reports with images.

Suppliers, just because you receive the retailer’s data, if you aren’t doing anything more than reporting back that their fast-sellers need to be replenished, I would say you are involved, but not committed. If you or your sales reps are unsure of what to do, our team of BIG Network consultants & trainers are looking forward to working with them.

Retailers, just because you are sharing data with your suppliers, if you are not working with them at the collection, category, price-point and style levels to improve your assortment strategies, I would say you are involved but not committed. And don’t even talk to me about not replenishing your fast-sellers!

When brands and retailers come together, share their information about what’s working and what needs improvement; analyze and plan budgets and inventory together and communicate well and support each other’s needs, everyone does better.

Since we can see how every brand is performing and we speak with retailers about how each brand is participating in the process (or not), I hope you can appreciate where I’m coming from. The brands that are committed receive accolades from retailers. They love them. Suppliers who aren’t committed, well, not so much.

We have just experienced several years of roller coaster ups and downs. It has come at us fast and we expect that the next couple of years will look somewhat different. Partnering based on your shared interests will be infinitely more important in the coming years and everyone has a fresh start for 2023. So, will you be a chicken or an egg? Will you just be involved, or will you be committed?