Time and time again, we see a link between engagement with supplier, retailer and wholesale trading partners and business performance. Those businesses with better engagement across key competencies consistently outperform their peers. And while the majority of these competencies are transferable across industries or channels – for example collaborative planning or delivering on commitments – each channel or industry also has a unique set of priority competencies.
This nuance is particularly evident in the Liquor industry when you consider engagement between suppliers and off-premise retailers compared to on-premise groups. Despite similar overall supplier satisfaction as measured by Advantage Score, some of the drivers do vary.
Off- vs on-premise engagement drivers
Some of these drivers are obvious. The key one being the supply chain nature of off-premise retailers. The capability of retailers or wholesalers to collaborate on demand forecasting or to optimise the efficiency and effectiveness of their supply chain is of high value to suppliers. For on-premise engagements, these factors are largely irrelevant. Retailers and wholesalers have a rigorous focus on Delivery In Full, On Time (DIFOT) outcomes. On-premise groups are more likely to be influenced by their satisfaction with a call centre or online order service.
Then there are the more subtle differences. Both off- and on-premise businesses are focussed on the right range for their customers. For on-premise groups, this is much less about an overall category growth approach than it is for off-premise. And while both groups value the accessibility and quality of the people they engage with at their suppliers, for one-premise groups contact with senior managers is of greater importance.
Looking at the supplier side, executing as per agreements is equally important for both channels, however, there is a greater emphasis on ROI from retail activities than for on-premise. Likewise, for engagements with retailers, it’s critical to share data and build a reputation for making informed, category-based decisions. This isn’t as significant for on-premise engagements.
Measuring engagement
In recognition of these differences, Advantage Group has recently refreshed the competencies included in the Drinks Association – Advantage On-Premise Trade Engagement program. This review was undertaken in collaboration with Drinks Association members to ensure all liquor businesses – be they suppliers, retailers, wholesalers or on-premise groups – have relevant trading engagement insight.
The 2025 Trade Engagement program will see 20+ off-premise retailers and wholesales, and 70+ major on-premise groups invited to provide feedback for suppliers. This process will commence on the 27th March and Advantage Group will looks forward to discussing this feedback with Drinks Association members following the 2025 Australian Drinks Awards.
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Advantage is a Platinum Partner of the Drinks Association