Client: Florida Retailer
Project category: Primary Distributor Contract Evaluation
b2b Solutions was contacted by a Florida retailer who was seeking to evaluate several alternative primary distributors for their chain. Concerned that they did not have the internal expertise to conduct a Request for Proposal they engaged our team of c-store experts.
Actions by Our C-Store Consultants Included
Discussed with retailer what they like and don’t like about their current distributor.
Worked with the retailer to determine what are the key decision factors for the selection of a primary distributor.
Discussed with the retailer their desire to be presented with three, and five, year contract proposals.
Secured agreement on the elements to be included in the competitive set matrix.
Held an initial conversation with each of the two potential primary distributors selected by the retailer.
Provided the distributors our primary distributor questionnaire and the retailer’s historic purchase minus any pricing information.
Supplied distributors with the retailer’s store list and delivery frequency.
Requested initial proposals to include proposed pricing and their completion of the competitive set matrix from both distributors.
b2b Solutions c-store consultants analyzed the initial proposals and respondents’ market baskets. This included developing a common market basket for all participants with exact SKU matching.
Verified the participants’ responses to our competitive set matrix.
Determined if a lower cost was achievable with either distributor.
Arranged on-site meetings with the distributor and retailer.
Provided updates throughout the RFP/Distributor Evaluation process.
Presented a competive set matrix based on our questionnaire containing the replies of both distributors.
Developed a summary of annualized cost for the market basket in the agreed upon categories of cigarettes, OTP, and all other goods based on three, or five, year contracts.
Verified and documented both hard cost differences and potential soft savings for each of the participating distributors and provided it to the retailer.
Invited the distributors to a face to face meeting with the retailer.
Notified the distributors of the retailer’s decision.