Sainsbury's boosts supplier collaboration

Sainsbury’s has begun offering its suppliers product and store-based analysis using sales and loyalty card data, in an attempt to...

Sainsbury’s has begun offering its suppliers product and store based analysis using sales and loyalty card data, in an attempt to ensure the products offered in store are more closely aligned with customer demand.


The collaborative project, which follows a successful pilot with key suppliers carried out earlier this year, uses new analytics software from supplier Lawson to link into till roll data from TNS and Nectar card information to allow Sainsbury’s to make more informed decisions.


Under the new system, which went live this week, suppliers will be able to find out information such as the repeat purchase rate of individual products, profiles of customers purchasing particular products and the most appropriate tools to attract customers.


Andrew Ground, Sainsbury’s customer marketing director, said, “The key to this working is to make the insight focused on topics such as product range, space, price, and promotion so that together, Sainsbury's and its suppliers remain focused on the needs of the customer base.


“As the suppliers and the Sainsbury's team (traders and merchandisers), become better informed and better aligned, the customer is the main beneficiary, because it's what they buy and their buying needs that will be driving this investment of activity energy and time.”


An unusual insight that the Lawson software has already produced is that people who buy dishwater tablets are 20% more likely to buy wine – useful for suppliers of each product, Ground said.


The introduction of the supplier collaboration project is one of a number of IT initiatives Sainsbury’s has put in place to combat falling sales, including a complete refresh of point-of-sale systems and upgraded supply chain and logistics systems.


However, the underperformance of the supermarket chain – now third in the UK grocery market – was underlined this week, when till roll data for the 12 weeks to 12 October revealed its market share had fallen from 17.4% to 16.1%.

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