Supplier Contribution Model

Supplier Contribution Model

Distributors and retailers are in the continual pursuit of supplier funding and lower cost of goods (COGS) to remain price competitive and profitable. Constant COGs negotiations, cost out projects and treasure hunting for supplier funds have become an intense, annual challenge. While lower COGS and supplier funding are essential, leading distributors and retailers are adopting the principles and practices of TPG’s Supplier Contribution Model to gain competitive advantage.

TPG’s Supplier Contribution Model provides the framework, processes and tools for optimizing COGS, maximizing supplier funding and harnessing strategic supplier resources that enhance the customer experience and deliver accelerated growth.

What We Do

TPG provides a team of experts that assist distributor and retail clients in developing, implementing and sustaining a supplier contribution model that identifies COGS and waste opportunities, fosters incremental supplier funding and resource investment.. Our Supplier Contribution Model includes:

  • Rigorous Supplier P&L: A readily available, cross-category, cross-functional P&L that encompasses the entire value chain capturing COGS, funding and expenses.
  • Supplier Segmentation: A proprietary segmentation model that tiers suppliers based upon several criteria, including contribution. These supplier segments include varying levels of collaboration, tiered incentives and other supplier management practices.
  • Training: The curriculum includes instructor-led, elearning and experiential training in financial analysis, planning, negotiation, value chain and collaboration.
  • Communication & Planning: New, synergistic processes, supplier summits and joint value creation methods are designed and implemented to create ongoing and cross-functional ways of working internally and with suppliers.
  • Self-Sufficiency: A repeatable corporate model and approach that enables self-sufficiency for the client.