Over the past 15 years, driven largely by cost-cutting measures, retailers began sharing POS and inventory data with CPG suppliers - shifting the responsibility to them in finding opportunities for smarter inventory management and replenishment.

This shift signaled the beginning of what many anticipated would be a more collaborative relationship.

However, a critical issue has emerged: while the flow of data between retailers and CPG suppliers has increased, the relationship itself is often still managed by the commercial / sales teams on the CPG supplier side.

While these teams remain vital to the dynamic, the complexities of aligning inventory with consumer demand and ensuring efficient replenishment require a more specialized focus beyond traditional sales functions.

Ideally, this should be managed by customer supply chain teams, who are better equipped to understand the nuances of the data, the specific needs of the supply chain, and how to drive true operational efficiency.

Yet, many CPG suppliers still lack dedicated customer supply chain teams, or they don’t have someone leading these efforts at the senior level.

For CPG suppliers to truly realize the potential and become strategic partners to their retailer customers, several key changes need to happen:

1. Investing in Customer Supply Chain Teams:

One of the primary challenges is the absence of dedicated customer supply chain teams. These teams play a crucial role in translating data insights into actionable inventory and replenishment strategies. However, establishing or expanding these teams doesn’t necessarily mean building from scratch.

In some cases, outsourcing part of the customer supply chain function can help supplement internal capabilities and allow for a more scalable approach. Outsourced customer supply chain experts can bring a fresh perspective and specialized knowledge, which can be crucial when dealing with complex retailer needs.

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2. Customer Supply Chain Leaders Thinking in Commercial Terms:

Traditionally, customer supply chain teams have focused primarily on operational efficiency — managing inventory, ensuring timely deliveries, and minimizing costs. While these operational objectives remain important, it’s essential for customer supply chain leaders to also think in commercial terms. This means aligning supply chain strategies with broader business goals, understanding the retailer’s business objectives, and crafting solutions that drive mutual business value.

By thinking commercially, customer supply chain leaders can play a more integral role in guiding strategy and unlocking growth opportunities, rather than playing a purely tactical role.

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3. More Collaboration Between Commercial and Supply Chain Teams:

Finally, one of the most effective strategies we've observed with our customers to overcome barriers in retailer-supplier collaboration is fostering closer alignment between the commercial/sales teams and the customer supply chain teams.

Currently, these teams often operate in silos, with little cross-functional collaboration. Bridging this gap can lead to a more holistic approach to solving problems, from ensuring that products are available on store shelves to tailoring inventory strategies to localized consumer demand.

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While these suggestions provide a glimpse into potential solutions, they are by no means exhaustive.

The barriers to true supply chain collaboration between CPG suppliers and retailers are multifaceted, and addressing them requires sustained change management efforts and strategic re-thinking across the entire value chain.

However, in 2025, we believe there is a significant opportunity for CPG suppliers to reassess their current approach to better position themselves as true strategic partners to retailers.

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About bops:

bops is a Next-Gen Supply Chain Collaboration Platform. We partner with CPG Suppliers and Retailers to help them avoid lost sales, markdowns, and returns by streamlining the Next-Gen CPFR (Collaborative Planning, Forecasting, & Replenishment) process.