8th & Walton

What Is a Joint Business Plan (JBP)? Benefits & Best Practices

By 8th & Walton | on October 2, 2022

From small businesses to large corporations, the most successful companies begin and stick with a clear business plan. When a company defines its goals, lays out a path to meet objectives, and agrees on financial spending and expectations, it creates a shared vision and accountability to succeed.

Many businesses experience greater growth when partnering with another business. In the supplier and retailer relationship, both parties working independently would be detrimental. To create a mutually beneficial partnership, they must begin by defining each company’s responsibilities, expectations, and needs in a joint business plan.

What Is a Joint Business Plan?

A joint business plan (JBP) is the collaborative process of planning between a retailer and a supplier in which both companies agree on short-term and long-term objectives, financial goals, growth, and shared business initiatives for profitability.

Joint business planning focuses on agreeing on common objectives and aligning on a single goal or set of goals. The companies in the joint business plan must work together to accomplish a shared vision.

What Is the Purpose of a Joint Business Plan?

For retailers and suppliers, having a joint business plan can create a win-win strategy in growing consumer sales. An effective JBP allows suppliers to build stronger relationships with their retailers so both parties can mutually support and benefit from each other.

When a retailer and supplier recognize each others’ needs and agree on common goals, they can share insights to support each other and improve sales, customer growth, and processes.

How Does a Joint Business Plan Work?

Two companies can come together with a joint business plan because they have one thing in common: a shared shopper . Whether it is a supplier partnering with a retailer or a children’s clothing company partnering with a toy manufacturer, having the same target audience is the first element that brings the companies together.

The companies considering a joint business venture should then share their individual business plans and discuss their mutual growth opportunities. This is where the general goals and areas of support can be defined. Specific tactics and category strategies can also be fleshed out in early discussions before moving to the formal process.

Once both companies are in agreement that the partnership will be mutually beneficial, the joint business plan can be created. Formal contracts are drawn up, approved, signed, and the plan is ready to be executed. Periodic reviews and necessary adjustments to the JBP are recommended as needed.

Benefits of Joint Business Planning

Why enter into a joint business plan with another company? The benefits can be not only financial but educational as well:

  • Aligning goals.  For a retailer/supplier joint business plan, being aligned on goals creates clarity on all other areas of the business. Defining expectations on all areas from marketing to supply chain to sales goals leaves minimal area for questions. Agreeing on goals, no matter how and when they are measured, keeps both parties accountable and benefits both to meet expectations.
  • Shared resources and exposure. Partnering with another company can bring a new audience and a new platform. In a simple retailer/supplier joint business plan, the retailer can introduce the supplier’s product to its core shoppers. At the same time, shoppers loyal to the supplier’s product or brand can be introduced to the retailer’s store and website for the first time.
  • Greater return on investment.  By partnering with another company with a shared vision, the benefits above will provide a better ROI when the plan is executed correctly.

Joint Business Planning Best Practices

How can companies ensure their joint business plan is a good fit for both parties? These are some best practices to include in preparation for entering into the partnership:

1. Align Internally First

Before entering into a joint business plan with another company, all members of the business must agree on the benefits of the partnership. Recognizing the advantages and seeing the bigger picture is key. When employees are in alignment within the company, it will be easier to align with the partnering company on the shared vision of the joint business plan.

2. Create the Plan Together

When two businesses enter into a partnership, the joint business plan should not be built by only one. A company sending another a complete plan or just a form to fill out is not collaborative. Both companies need to build the plan from the ground up. Collaborating in the development of the joint business plan is just as important as executing the plan itself.

3. Set Specific Goals

Expectations for success in the partnership need to be specific. “We need to grow sales” or “production costs will decrease” are good goals, but too general. Keep specifics in your plan that are as specific as they are realistic. If one company wants to grow sales by 40% in the next quarter, this should be spelled out in the joint business plan so get early support or push back from the other company.

4. Assign a Metric to Each Goal

Putting a metric with a goal keeps the company accountable to the mission of the joint business plan. For example, if the goal is to grow sales by 40% in the next quarter, it would be wise to assign a weekly growth metric. If the metric is too low over a few weeks, the plan shows that action needs to be taken immediately in order to meet the 40% sales growth goal for the quarter.

5. Communicate Responsibility and Accountability

The joint business plan is the place to eliminate all guesswork. If Company A is responsible for providing labels to Company B, be very specific about the responsible parties. Clarify that the packaging coordinator of Company A will mail the labels to the warehouse manager of Company B on the first of the month.

6. Include Risks and Solutions

Planning for setbacks is key to planning for success. The joint business plan should include any possible risks or obstacles foreseen by either company. Having solutions in place for multiple scenarios makes the plan easier to execute.

7. Constantly Evaluate the Relationship

Joint business plans work better with trust, mutual respect, and a great working relationship. Keeping the relationship healthy between the companies and individuals relying on each other brings more success to the overall plan. Monitor the relationship periodically and work to resolve conflicts as they arise.

Joint Business Plans at Walmart

Walmart works with its suppliers to create plans for sales and category growth. The company relies on suppliers to bring insights to the table to spot trends and get in front of potential gaps in the business.

Back in 2011, Walmart created a joint business plan with Proctor and Gamble to pick up lost sales in air fresheners. This category was down over 2% across the chain, but P&G brought insights to Walmart on how consumers were purchasing throughout the industry.

Consumers had no problem going to Walmart for aerosol sprays for under a dollar, but would then go to specialty stores to purchase expensive candles in the same scent. Through communicating through the joint business plan, Walmart was able to create excitement around higher price-point items and show the shared shopper they could purchase the extra items in one store.

Positive business collaborations can be extremely beneficial in growing retail sales. Two companies sharing a common vision can build on each other’s best practices and support each other to mutually win at the register.

Suppliers looking for support in their Walmart business have found great collaboration with 8th & Walton. Our team of experts supports suppliers to improve reporting, analytics, supply chain, accounting, and more. To begin a great collaboration with us, request a free 15-minute consultation this week.

About the Author

joint business planning meaning

8th & Walton consists of retail industry experts with a combined 200+ years of Walmart and Walmart supplier experience. Having helped hundreds of CPG companies in their efforts to be better supplier partners to the world's most influential retailer, the 8th & Walton editorial team prides itself on being a go-to resource for Walmart supplier news and insights.

Related Content

joint business planning meaning

List of Walmart Deduction Codes Defined

Walmart Tax Code

Walmart Tax Code: How Sales Tax Works on Walmart.com

Walmart Connect

What Is Walmart Connect? How to Advertise With Walmart

joint business planning meaning

joint business planning meaning

A Guide to Joint Business Planning Best Practices

  • March 21, 2024
  • No Comments

Joint business planning is a crucial aspect of fostering successful collaborations between companies. In today’s dynamic business environment, strategic partnerships have become increasingly prevalent, making it essential for organizations to adopt effective joint business planning best practices. This article will explore the key principles and strategies that contribute to successful joint business planning, providing insights into how businesses can optimize their collaborative efforts for mutual growth and success.

Table of Contents

The Importance of Joint Business Planning in Today’s Market

In an era defined by rapid change and increasing interconnectivity, the significance of joint business planning cannot be overstated. This section explores how businesses can gain a competitive edge, foster shared vision, and unlock mutual growth opportunities through effective collaborative strategies.

Competitive Advantage and Shared Vision

Joint business planning serves as a catalyst for companies seeking a competitive advantage in the market. When organizations come together to strategically plan and align their strengths, they create a synergy that surpasses individual capabilities. This subsection delves into how collaborative efforts can amplify competitiveness by leveraging the unique strengths of each partner.

A shared vision is the cornerstone of successful partnerships. This subsection emphasizes the importance of establishing a common understanding of long-term goals and objectives. By aligning visions, businesses can enhance cooperation, minimize conflicts, and work towards a unified purpose. Effective joint business planning ensures that all stakeholders are on the same page, promoting a cohesive approach to achieving shared goals.

Mutual Growth Opportunities and Win-Win Strategy

Joint business planning creates a framework for identifying and capitalizing on mutual growth opportunities. This involves exploring synergies between partners, uncovering complementary strengths, and strategically leveraging resources. This subsection explores how collaborative planning facilitates the identification of avenues for joint growth, leading to mutually beneficial outcomes.

The essence of successful joint business planning lies in adopting a win-win strategy. This involves creating scenarios where all parties involved stand to gain, fostering a collaborative environment based on trust and reciprocity. This subsection delves into the principles of a win-win approach, showcasing how it not only enhances the success of partnerships but also builds a foundation for long-term, sustainable relationships.

Core Elements of Effective Joint Business Planning

Joint Business Planning Best Practices

Collaboration is only as strong as the foundation it is built upon. This section delves into the essential elements that underpin successful joint business planning, emphasizing the importance of aligning business strategies, sharing shopper and marketplace insights, and cultivating collaborative working relationships.

Aligning Business Strategies for Success

Central to effective joint business planning is the alignment of business strategies. This involves harmonizing the goals, tactics, and overarching plans of collaborating entities. By ensuring strategic congruence, partners can maximize the impact of their combined efforts. This subsection explores the intricacies of strategic alignment and how it forms the bedrock for successful joint business planning.

Effective joint business planning goes beyond immediate gains; it incorporates a holistic approach that integrates both short-term wins and long-term objectives. This subsection discusses how businesses can synchronize their timelines and milestones to create a comprehensive strategy that facilitates sustainable success.

Shared Shopper and Marketplace Insights

An integral aspect of joint business planning is the sharing of shopper insights. By pooling data and understanding consumer behavior and preferences, partners can tailor their strategies to meet evolving market demands. 

This subsection delves into the importance of shared shopper insights and how they contribute to more informed decision-making in collaborative endeavors.

In a dynamic marketplace, staying ahead requires constant awareness. This subsection explores how joint business planning encourages the exchange of marketplace intelligence. Partners can adapt to changing trends, capitalize on emerging opportunities, and navigate challenges more effectively by combining their knowledge and resources.

Collaborative Working Relationships

At the heart of effective joint business planning is the cultivation of collaborative working relationships. Trust and open communication form the backbone of successful partnerships. This subsection explores strategies for building trust among partners and fostering an environment where transparent communication is prioritized.

Collaboration often involves navigating unforeseen challenges and capitalizing on unexpected opportunities. This subsection discusses the importance of flexibility and responsiveness in joint business planning, emphasizing the need for partners to adapt and evolve together in a dynamic business landscape.

How to Create an Effective Joint Business Plan

Joint Business Planning Best Practices

In the pursuit of successful collaborative ventures, crafting an effective joint business plan is paramount. 

This section outlines the key steps involved in creating a robust plan, covering aspects such as setting joint objectives, resource allocation, and addressing legal considerations.

1. Setting Joint Objectives and Account Management

The foundation of any joint business plan lies in establishing clear and achievable objectives. This subsection explores the importance of defining shared goals, aligning strategies, and ensuring that all stakeholders are committed to a common purpose. Clear objectives provide a roadmap for collaborative efforts, guiding partners toward mutual success.

Effective account management is crucial for the seamless execution of joint business plans. This involves assigning responsibilities, creating accountability structures, and establishing communication channels. 

Delving into the intricacies of strategic account management, this subsection highlights how a well-organized approach contributes to the overall success of collaborative initiatives.

2. Resource Allocation and Shared Resources

Resource allocation is a critical aspect of joint business planning, ensuring that both parties contribute and benefit equitably. 

This subsection explores strategies for optimizing the allocation of financial, human, and technological resources. By balancing contributions, businesses can enhance efficiency and maximize the impact of their collaborative efforts.

Collaborative ventures often involve the pooling of resources to achieve common goals. This subsection delves into the concept of shared resources, emphasizing how partners can leverage each other’s strengths to overcome challenges and capitalize on opportunities. 

Efficient utilization of shared resources enhances the overall effectiveness and sustainability of joint initiatives.

3. Formal Contracts and Legal Aspects

A crucial step in creating an effective joint business plan is the establishment of formal contracts. This subsection explores the importance of clearly defined agreements, covering aspects such as roles and responsibilities, dispute resolution mechanisms, and exit strategies. 

Robust contractual frameworks provide a solid foundation for trust and transparency between collaborating entities.

Navigating the legal landscape is essential for the success and longevity of joint business ventures. 

This subsection delves into the legal aspects involved in collaborative efforts, addressing issues such as intellectual property, confidentiality, and compliance. Understanding and addressing legal considerations from the outset safeguards the interests of all parties involved.

Best Practices for Joint Business Planning Execution

Effective execution is the linchpin of successful joint business planning. This section explores best practices that organizations can adopt to ensure the seamless implementation of collaborative strategies, including the use of performance metrics, monitoring, accountability, and value chain analysis.

1. Performance Metrics and KPIs

Setting and monitoring performance metrics are essential elements of joint business planning execution. This subsection delves into the process of defining key performance indicators (KPIs) that align with the shared objectives of the collaborative venture. 

By establishing measurable benchmarks, organizations can gauge the success of their efforts and make informed decisions to optimize performance.

Performance metrics should not be static; instead, they should be subject to continuous evaluation. This subsection emphasizes the importance of regularly assessing KPIs, analyzing performance data, and adapting strategies based on the evolving needs of the collaboration. 

A dynamic approach to performance measurement ensures that joint business plans remain responsive to changing market conditions.

2. Monitoring and Accountability

Effective monitoring is a cornerstone of successful joint business planning execution. This subsection explores proactive monitoring strategies, including the use of technology, regular communication channels, and real-time data analysis. 

By staying vigilant and responsive, organizations can identify potential issues early on and take corrective actions to maintain the trajectory toward shared goals.

Clear accountability structures are vital for the success of collaborative ventures. This subsection delves into the importance of defining roles, responsibilities, and expectations within the partnership. 

Establishing accountability structures fosters a sense of ownership among all stakeholders, ensuring that each party contributes actively to the joint business plan’s execution.

3. Value Chain Analysis and Multi-functional Execution

Conducting a value chain analysis is a best practice that can significantly enhance joint business planning execution. This subsection explores how organizations can identify value-creation opportunities at each stage of the collaboration. 

By optimizing the value chain, partners can streamline processes, reduce costs, and deliver enhanced value to customers.

Collaborative ventures often involve the integration of multiple functions within each organization. This subsection discusses the importance of multi-functional execution, emphasizing the need for seamless coordination across departments. 

By breaking down silos and promoting cross-functional collaboration, organizations can ensure the holistic implementation of joint business plans.

Creating Value Through Customer Focus

In today’s customer-centric business landscape, creating value for consumers is at the forefront of successful joint business planning. 

This section explores strategies for placing customers at the center of collaborative efforts, enhancing consumer sales, and elevating the overall customer experience.

How to Create Value for Customers Through Joint Business Planning

A fundamental step in creating value through joint business planning is gaining a deep understanding of customer needs and preferences. This subsection explores how organizations can leverage market insights, customer feedback, and data analytics to identify and prioritize customer-centric initiatives. 

By aligning collaborative strategies with customer expectations, businesses can create offerings that resonate with their target audience.

Effective joint business planning involves co-creating solutions that address specific customer pain points. This subsection emphasizes the importance of collaboration in ideation and product development, showcasing how partnerships can bring together diverse perspectives and expertise to deliver innovative solutions. 

Co-created offerings not only meet customer needs but also differentiate the collaborative venture in the market.

Consumer Sales and Customer Experience

Joint business planning can significantly impact consumer sales by optimizing distribution channels, expanding market reach, and aligning sales strategies. This subsection explores how organizations can leverage their collaborative efforts to boost consumer sales. Whether through joint marketing initiatives, bundled offerings, or cross-promotions, aligning sales strategies enhances the overall success of the partnership.

Customer experience is a critical differentiator in today’s competitive market. This subsection delves into how joint business planning can be structured to elevate the customer experience. 

From seamless transactions to personalized interactions, collaborative ventures can enhance every touchpoint in the customer journey. Focusing on customer satisfaction not only builds loyalty but also contributes to the long-term success of the collaborative partnership.

In conclusion, the journey through the intricacies of joint business planning best practices has highlighted the pivotal role that effective collaboration plays in today’s dynamic business environment. 

From aligning business strategies and setting joint objectives to executing plans with a customer-centric focus, the success of collaborative ventures hinges on a thoughtful and strategic approach.

Frequently Asked Questions (FAQs)

What are the key metrics to measure the success of a joint business plan.

Measuring the success of a Joint Business Plan involves tracking key metrics such as revenue growth, market share expansion, customer satisfaction, cost savings, return on investment (ROI), and adherence to compliance and risk mitigation. 

These metrics provide a comprehensive evaluation of the collaborative venture’s impact on both financial and operational aspects, ensuring a holistic assessment of the plan’s effectiveness.

How do you resolve conflicts during the Joint Business Planning process?

Resolving conflicts during the Joint Business Planning process requires an open communication approach, identification of root causes, and, when needed, the involvement of a neutral third party for mediation. 

A clear definition of roles and responsibilities, the establishment of conflict resolution protocols within the joint business plan, and a focus on shared objectives contribute to addressing conflicts promptly and fostering a collaborative environment.

What role do executive sales leaders play in Joint Business Planning?

Executive sales leaders play a pivotal role in Joint Business Planning by strategically aligning sales efforts with overall business goals, contributing to resource allocation discussions, cultivating relationships with key stakeholders, providing market insights, and overseeing the performance of sales teams. 

Their involvement ensures that sales strategies complement the collaborative venture’s objectives, driving success in terms of revenue and market impact.

How often should a Joint Business Plan be reviewed and updated?

The frequency of reviewing and updating a Joint Business Plan varies but commonly involves quarterly reviews for timely adjustments based on market changes and annual updates for comprehensive reassessment of long-term goals. Additionally, trigger events such as major market shifts or significant internal changes may prompt unscheduled reviews. 

Adapting the frequency based on the dynamic nature of the business environment ensures the plan remains relevant and responsive to evolving conditions.

Are there any software tools that can facilitate Joint Business Planning?

Various software tools facilitate Joint Business Planning, offering features such as collaboration, data analysis, project management, and document sharing. Platforms like Microsoft Teams, Slack, or Asana enhance communication, while tools such as Tableau or Power BI aid in data analysis.   Project management software like Trello or Jira helps in planning and tracking progress, and CRM systems like Salesforce or HubSpot centralize customer interactions and sales activities. The selection of tools depends on the specific needs and preferences of the collaborating organizations.

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Related content:

joint business planning meaning

With over 25 years of experience, the CPCON Group is the global advisor that enhances and maximizes organizations’ internal control, promoting increased management efficiencies, improved regulatory compliance and financial supervision.

More about CPCON

80 Broad Street, 5th Floor, Manhattan, 10004

[email protected] +1 (347) 554-2629

Aforza

What Is Joint Business Planning?

What is JBP Hero

Executive Vice President and Chief Merchandising Officer , Sam’s Club (Walmart)

Tectonic Shifts in the Retail Environment

The symbiotic relationship between retailer and Consumer Packaged Goods (CPG) companies has, till now, been able to support steady growth based on demand alone. Now, as the Consumer Goods (CG) industry continues to shift away from organic expansion, the need to reach more customers and engage new audiences is more important than ever.

Let’s dive in to some of the key shifts our customers are seeing in the retail environment:

  • Competition: Authentic challenger brands are continually entering the market. According to a recent survey carried out by McKinsey, 30-40% of consumers have been trying new brands and products during the pandemic. Of these consumers, 12% expect to continue to purchase the new brands after the pandemic. More competition = more difficulty obtaining or retaining market share.
  • Price Pressures: Global supply chain stress has created a multitude of issues for companies seeking to keep costs down. Disruptions in labour markets have seen  15% of companies  with insufficient labour for their facilities to keep up with increases in demand, leading to inflation re-emerging as a significant problem for the first time since the 1970s.
  • Regulations: Changing consumer needs are not only encouraging the rise of new, healthier alternative brands but also instigating real legislative change. For example, in October 2022, HFSS (High in Fat, Salt & Sugar) regulations  will see a crackdown on promotions for unhealthy food and drinks, which will have serious repercussions for both suppliers and retailers.

What is JBP 3 Points Image

Traditional Account Management Is Obsolete

Retail, Wholesale & Distribution Leader , Deloitte Global

What is JBP Evan Sheehan Image

These shifts have caused retailers to change the way they do business; the traditional playbook needs to be thrown out and rewritten. The diversification we have seen in channels, models and store formats means that retailers’ expectations for suppliers have changed. And, as increasing numbers of authentic challenger brands come to market, competition has never been higher. 

For both retailers and suppliers, Key Account Management (KAM) needs to be revisited. A culture of test & learn in real time needs to be applied to contend with these new market entrants and, with “key accounts contribut[ing] between 40% to 80% of revenue for a branded supplier” in developed markets as indicated by   this article by Bain & Company , the time to reinvent is now.

Major incentives for change can be distilled into these three points:

3 Points Joint Business Planning Visual

Negotiation Can Feel Like a Zero-Sum Game

In the past, the CPG industry power dynamic has often favoured the supplier, but this is no longer the case.   Only 3% of retailers   are in an exclusive relationship with just one supplier in a given category, indicating the clout they hold to sway access to consumers is higher than ever before. With   a number of Consumer Goods companies   falling prey to a one-size-fits-all to their global business models, they have been losing valuable ground to more specialised, relevant competitors.

For CPG companies, visibility at point-of-sale for their products is vital. For retailers, getting the product in-store   to   sell is their business. Having retailers being ‘on-side’ and aligned is game-changing for suppliers. 

But, as indicated in the name, Joint Business Plans need to be exactly that: Joint. If the manufacturers arrive at the table with a railroad agenda, offering little to no agency to the retailer, it will be too one-sided and off balanced. If retailers have unrealistic expectations, e.g broad assortments or 24-hour delivery, from certain suppliers, the equilibrium of the plan will be thrown off from the outset. This is where the value of insight-sharing cannot be understated;   IGD asserts   that both sides must ‘be prepared to share information with each other’ to achieve success.

Both CPG companies and retailers need to be able to influence the plan and offer respective insights to avoid creating a zero-sum atmosphere.

How Can Joint Business Planning Be Achieved?

For companies collaborating on Joint Business Plans, certain proactive steps need to be taken to fit the plan to benefit both parties. Bain & Company have set out   five key steps   that they have seen Consumer Goods companies take to achieve ‘more trustful and productive’ relationships and provide significant value.

What is JBP Bain & Company Visual

1. Understand the Retailer’s Economics as Well as Your Own

Entering into a business relationship, such as a JBP, with a full understanding of where a potential partner is in the market is pivotal to a successful collaboration. Being aware of any weaknesses provides the opportunity to address them before they become an issue and impact your business. 

In turn, a complete understanding of your own business’ strengths and weaknesses before embarking on any external partnership is equally important. A Joint Business Plan can only be successful if it truly brings benefit to both the retailers and CPG companies; without this, joint commitment can’t be assured. 

This demands the creation of an environment where retailers and CPG companies can offer total visibility into their data, thereby enabling creation of target audiences and consumer journeys. As indicated by an   IGD Industry Survey , ‘Too often trust is the biggest barrier to putting any proposal into action’. Data transparency reduces the possibility of down-the-line surprises and potential derailing of the plan.

2. Differentiate Your Joint Business Plan and Align It With Your Retailer’s Strategy to Target Shoppers

While keeping costs down may be   advantageous, it is vital not to lose sight of the top priority; understanding the target customer segments. 

Customer data extracted through the collaborative JBP can help maintain product stock levels, illustrate demand and identify trends in product distribution. Without this information, even a theoretically perfect Joint Business Plan will fail. Understanding who the customers are and what they are buying better enables CPG companies and retailers to produce and distribute – keeping the customer’s needs at the crux of their strategy.

It’s important to note that Joint Business plans are not one-size-fits-all; it may take more time to differentiate a plan to make it more tailored to a specific relationship, but the benefits can outweigh the expense.

3. Have Teams on the Ground Executing Key Customer Touchpoints and Confirming Compliance

Research by POI illustrates that   58% of CPG companies   are struggling with retailer aligned compliance for store-level promotion execution. Clearly, there is a concerted need to ensure in-real time that assured promotions are being carried out, but   27% of CPG companies   do not get   any   real-time insights into retailer compliance, forcing them to wait until the end of a cycle to make any significant changes.

While promotion compliance isn’t a new issue in the Consumer Goods industry, it can be a major roadblock to a JBP. With teams in the field, far more regular compliance checks can be performed and the information shared much wider, much faster. 

4. Maintain Year-Round Contact With Customers at Multiple Levels and Functions

The dialogue between each party needs to continue beyond initial negotiations and agreements. Regular meetings provide opportunities to correct mid-cycle issues, where the retailer and CPG company can align on real-time results and solutions. 

Without clearly defined and tracked performance metrics, the success of the JBP is uncertain. Both parties need to agree on what data sources are going to be reviewed. Expectations must be laid out internally and externally, to establish what each side hopes to get out of the arrangement. This will prevent potential disappointment if or when unaired expectations aren’t met. 

It is also important to have discussed and agreed upon the terms and investment in the JBP. Going into a project aware of the value that each business is adding to the other and being able to quantify the ROI is fundamental to a successful Joint Business Plan.

5. Use the Most Advanced Tools and Insights to Stay on Top of Your Joint Numbers

As shown in the recent Promotion Optimization Institute (POI)   State of the Industry Report , 64% of manufacturers have challenges when looking for data from retailers. When data is such a foundational element to gainful retailer partnerships, it needs to be shared. The ideal is to involve teams from across the company including distribution, sales, finance and marketing. Siloed internal communication can negatively impact information sharing and lead to failure of a JBP.

CPG companies need to leverage real-time insights pulled from a range of commercial data sources that allow them to optimize strategies based on their business goals and current supply and promotion constraints. This maximises the value of every dollar invested in trade spend.

Aforza & Joint Business Planning

Closely aligned with the tenets of   Bain’s Key Account Management Commercial Excellence   framework, Aforza drives Joint Business Planning with an end-to-end platform of core functionalities:

  • Account 360° View : Gain a complete view of an account’s hierarchies and key relationships, as well as visibility into all engagement activity across channels.
  • Real-time Data & Insights on Account Performance:   Get real-time insights, from a range of commercial data sources, across all aspects of your key account performance.
  • Integrated Trade Promotions:   Optimize trade spend  and   target key customers   by displaying a real-time view into promotion performance, inventory levels, sales order insights, budgets & funds, plans & objectives.
  • Retail Execution   Checks from Field Sales Teams:   Leverage your teams in the field to check key account compliance and take promotion-based order capture with penny-perfect pricing on mobile;   online or offline .
  • Digital Asset Management :   Ensuring all important business documents are centralised and accessible against the account, such as contracts and Joint Business Plans.

Check out this demo from Aforza’s Chief Product Officer, Nick Eales, as he showcases how leading Consumer Goods companies are leveraging Aforza to create productive account collaborations that unlock revenue potential like never before:

With industry-leading innovations and capabilities, the Aforza cloud & mobile solution continues to help consumer goods companies sell more and grow faster. Take the first steps now and create productive account collaborations that unlock revenue potential like never before.

Join Aforza

Explore exciting opportunities to join the Aforza team and drive innovation in the consumer products industry.

Updated on 22 Nov, 2023

  • " class="font-normal text-gray-700 hover:underline" >What is JBP in marketing?
  • " class="font-normal text-gray-700 hover:underline" >What are the benefits of JBP?

JBP Objectives

Levels of jbp.

  • " class="font-normal text-gray-700 hover:underline" >How do I prepare for a jbp marketing?

JBP helps customers goods suppliers and eCommerce store owners to build good relationships that benefit both and improve the eCommerce experience.

What is JBP in marketing?

JBP means  Joint Business Planning. It's like shared business planning , JBP is building winning relationships that benefit both suppliers as well as sellers and improve the good experience for consumers through clear insights.

Basically, JBP is an alignment process between the goods suppliers and sellers that produce breakthrough business plans. The main objective of JBP is to set the alignment of goals and some action plans between the two collaborative parties.

For sellers and suppliers, having a  jbp   marketing  can produce a win-win strategy in growing sales . An effective joint business plan allows suppliers to build stronger relationships with their sellers so both partners can mutually support and take benefit from each other.

When a seller and supplier understand each other's needs and agree on common objectives, they can share insights to support each other and that helps to improve conversion , product growth, and processes.

What are the benefits of JBP?

Some benefits that actually helpful while using the  jbp   marketing  model can be not only financial but educational as well.

Alignment: JBP being aligned on objectives creates clarity on all other areas of the business for both partners. Agreeing on the same goals, no matter how and when they are calculated, keeps both seller and supplier accountable and benefits both to meet expectations.

Exposure: Partnering with another business can bring new consumers and a new platform. In a simple seller/supplier JBP, the seller can sell the supplier’s product to its potential shoppers. At the same time, shoppers loyal to the supplier’s product can be visited the seller's eCommerce website for the first time.

ROI: By partnering with another business with a common goal, the benefits above will provide a better return on investments for both parties when the plan is executed correctly.

JBP is designed to deliver shared benefits or objectives, mutual accountability, and a perfect work strategy.

  • Shoppers profile creation
  • Time to time opportunity identification
  • The alignment process focused on the same goal
  • JBP including Scorecards and Strategies for both
  • Mutually understanding joining plan development
  • Understanding the seller Economics
  • Differentiate JBP and Align It
  • Maintain good contact with customers

There are mainly three levels of JBP present.

Levels of JBP

1. Foundational Level: In this aligns with basic metrics of sales, expenses, profit ,

etc. Plan for upcoming new product introductions and necessary adjustments, etc.

2. Advanced Level: Deeper planning. Foundation Level + more complex analysis such as supply chain/logistics efficiencies, and shopper marketing process.

3. Leadership Level: This is the highest level of commitment. Advanced Level + significant investment

in high-return elements of joint value generation such as new product innovation, equity building, and joint products.

How do I prepare for a jbp marketing?

Planning for a joint business plan involves several important steps that can greatly contribute to its success. We want to make sure that we cover all the necessary aspects to ensure a successful outcome.

One important thing to consider is to conduct comprehensive research on the market and the potential partners involved. This research can greatly assist in understanding the goals, objectives, and expectations of all parties involved, as well as identifying any possible challenges or risks that may arise during the planning process.

It is of utmost importance to establish friendly and open lines of communication with our partners in order to foster effective collaboration and coordination. This can be achieved by scheduling regular meetings, creating shared document repositories, and implementing clear protocols for decision-making and problem-solving.

Moreover, it would be really helpful to create a detailed timeline and action plan so that we can stay organized and keep track of all the tasks and activities needed for the joint business plan.

It would be really great if this plan could include some specific milestones and deadlines. That way, we can all stay on track and hold ourselves accountable.

Finally, it is crucial to consistently assess and review the progress of the joint business plan, making any necessary adjustments and improvements along the way to ensure its successful implementation.

By following these steps and putting in enough time and effort into the preparation process, you can significantly improve the likelihood of a successful joint business plan.

Frequently asked questions

A successful Joint Business Plan requires each party to have a clear understanding of the goals, business, and customer requirements of the others. A great JBP isn't just about the end result, but also about the process and strategy behind it.

It involves careful analysis, thorough research, effective communication, and strategic decision-making. A great JBP takes into account various aspects like market trends, customer needs, competition, and financial projections.

A joint business plan typically covers several aspects to make sure that a collaborative business venture is successful. These aspects include:

  • A clear vision and mission statement
  • A detailed market analysis
  • A comprehensive marketing strategy
  • A thorough competitor analysis
  • A well-defined target audience
  • A comprehensive financial plan
  • A detailed implementation plan
  • A robust evaluation and monitoring framework

In simple terms, a JBP partnership refers to a collaborative agreement between two or more businesses to achieve common goals and mutually benefit from the partnership. It involves working together, sharing resources, knowledge, and expertise to make the most out of each other's strengths and increase the chances of success.

Related terms

Cliobra | Fully Automated Forex Trading System

Joint Business Plan (JBP): Benefits, Best Practices & Objectives

  • Recent Posts

Arif Chowdhury

  • Why Forex Automated Trading is Better than Manual Trading? - May 1, 2024
  • GBPUSD Forex Signal Update: Bullish Trend with Retracement on the Horizon (April 18, 2024) - April 18, 2024
  • EURUSD Forex Signal Update: Bullish Trend with Potential Dip (April 18, 2024) - April 18, 2024

Last Updated on November 28, 2023 by Arif Chowdhury

Imagine two retail brands, each with their own unique strengths and market presence. Now picture the joint business venture, with two partnering business partners, joining forces to conquer a new market together through joint ventures. This is the power of partnering with other teams in a company – a joint business plan , where executive summaries are created to outline shared goals and maximize potential.

Collaboration is vital in today’s competitive industry landscape. By forming joint ventures, companies can pool their resources, expertise, and networks to unlock new opportunities, expand their reach, and drive growth like never before.

Joint ventures allow companies to collaborate and create stronger teams , leading to increased success. A joint business plan serves as the blueprint for this collaborative venture, outlining key objectives, strategies, and tactics that both parties will execute together.

A well-crafted joint business plan typically includes an executive summary that outlines the purpose and scope of the collaboration. It also details specific marketing initiatives such as promotions or product launches aimed at capturing the target market’s attention. It covers aspects like distribution channels, branding efforts, and sales projections to ensure alignment between both parties.

In this blog post series on joint business plans, we will explore the importance of collaboration in driving success for retailers and companies in today’s fast-paced retail industry. Collaboration is crucial for the success of ventures in the retail industry.

We will delve into the key components of an effective joint business plan and provide real-life examples to illustrate its impact. So buckle up as we embark on this exciting journey towards collaborative success!

Benefits of implementing a joint business plan

Implementing a joint business plan can bring numerous benefits to retailers and companies involved in the venture. Let’s explore some of these advantages in detail:

1. Increased Alignment and Synergy between Partners

One of the key benefits of implementing a joint business plan is the increased alignment and synergy between partners. When all parties in a joint venture are working towards a shared goal, it becomes easier to align joint venture strategies , joint venture objectives, and joint venture activities.

Why teamwork is vital for joint business?

This alignment fosters collaboration and teamwork in the venture, allowing partners to leverage each other’s strengths and expertise.

  • Better coordination between teams.
  • Shared vision leads to improved decision-making.
  • Enhanced trust and mutual understanding.

Example: Imagine two companies collaborating on a marketing campaign. With a joint venture business plan in place, both companies can align their messaging, target audience, and promotional activities for maximum impact.

2. Enhanced Communication and Coordination

Another significant benefit of a joint business plan is the improvement in communication and coordination among partners.

Clear channels of communication are established, ensuring that information flows seamlessly between all parties involved. This enhanced communication enables faster problem-solving, timely decision-making, and efficient resource allocation.

  • Regular meetings facilitate open dialogue.
  • Improved sharing of information and knowledge.
  • Quick resolution of conflicts or issues.

Example: In a joint business plan between a manufacturer and distributor, regular communication helps them stay updated on market trends, customer feedback, and inventory levels. This enables them to make informed decisions regarding production volumes, delivery schedules, and product promotions.

3. Improved Resource Allocation and Cost Optimization

Implementing a joint business plan allows partners to optimize resource allocation effectively. By pooling resources together strategically, partners can reduce duplication of efforts while maximizing efficiency.

Resource Allocation and Cost Optimization for joint business

This collaborative approach also helps in identifying cost-saving opportunities by streamlining processes or leveraging economies of scale.

  • Shared resources lead to reduced costs.
  • Elimination of redundant activities.
  • Efficient use of available assets.

Example: Two companies in the logistics industry can collaborate on a joint business plan to optimize their transportation routes, thereby reducing fuel costs, minimizing delivery times, and maximizing the utilization of their fleets.

Recommended Reading: Esthetician Business Plan [Free Downloadable Template]

Best practices for successful joint business planning

1. establishing clear goals and objectives.

To ensure a successful joint business plan, it is crucial to establish clear goals and objectives . This means clearly defining what you want to achieve together with your partner or stakeholders. By setting specific targets, you can align your efforts towards a common purpose.

One way to do this is by using category management principles. This involves analyzing market trends, consumer behavior, and competitive landscape to identify opportunities for growth. By understanding the category dynamics, you can develop strategies that capitalize on market trends and consumer preferences.

2. Regular Communication and Feedback Among Stakeholders

Effective communication is key in any collaborative effort, including joint business planning. Regularly communicating with your partners and stakeholders helps maintain alignment and fosters a sense of shared responsibility.

By providing feedback throughout the planning process, you can address any issues or concerns promptly. This allows for adjustments to be made in real-time, ensuring that everyone remains on track towards achieving their goals.

3. Creating a Structured Timeline with Defined Milestones

A structured timeline with defined milestones is essential for keeping joint business planning on track. Breaking down the plan into smaller, manageable tasks helps ensure progress is made consistently.

Structured Timeline with Defined Milestones is essential for any business success

Consider creating a Gantt chart or project timeline that outlines key activities, deadlines, and responsible parties. This visual representation provides clarity on the sequence of tasks and allows for better coordination among team members.

Establishing milestones helps measure progress along the way. Celebrating these achievements boosts morale and keeps everyone motivated throughout the planning process.

4. Developing a Win Strategy

A win strategy focuses on identifying how both parties involved can benefit from the joint business plan. It aims to create mutually beneficial outcomes that drive growth for all stakeholders.

When developing a win strategy, consider factors such as market share gains, revenue growth opportunities, cost savings through economies of scale, or access to new markets or distribution channels.

Recommended Reading: Dump Truck Business Plan [Free Downloadable Template]

Evaluating the progress of a joint business plan

To ensure the success of a joint business plan, it is crucial to regularly evaluate its progress. This evaluation allows you to monitor key performance indicators (KPIs), conduct reviews and assessments, and make necessary adjustments to stay on track.

Monitoring Key Performance Indicators (KPIs)

Monitoring KPIs is an essential step in evaluating the progress of a joint business plan. These performance metrics provide valuable insights into the effectiveness of your plan and help you gauge its success. By tracking KPIs, such as sales growth, revenue generated, or customer satisfaction levels, you can assess whether your joint business plan is delivering the desired results.

Some key performance indicators that are commonly monitored include:

  • Sales performance: Keep an eye on how well your products or services are selling. Track factors like sales volume, average transaction value, and conversion rates.
  • Promotional effectiveness: Evaluate the impact of marketing campaigns and promotions on driving sales. Measure metrics like click-through rates, website traffic generated from promotions, or coupon redemption rates.
  • Product performance: Assess how well specific products are performing in terms of sales numbers, customer feedback, or market share gained.
  • Customer satisfaction: Monitor customer feedback and ratings to determine if your joint business plan is meeting their expectations.

Conducting Regular Reviews and Assessments

Regular reviews and assessments are vital for evaluating the progress of a joint business plan. Schedule periodic meetings with all stakeholders involved in the partnership to discuss achievements, challenges faced, and areas that require improvement.

These reviews provide an opportunity to analyze data collected from KPI monitoring and gather insights from each party’s perspective.

During these sessions:

  • Share research findings: Present any relevant market research or consumer insights that can inform decision-making processes.
  • Discuss results achieved: Review the outcomes achieved so far based on set goals and objectives outlined in the joint business plan.
  • Identify bottlenecks and risks: Identify any obstacles or risks that may be hindering progress and brainstorm potential solutions.
  • Collaborate on adjustments: Work together to determine necessary adjustments or modifications to the joint business plan, ensuring it remains aligned with changing market dynamics.

Recommended Reading: Missouri Small Business Loans: Rates, Requirements & Funds

Making Necessary Adjustments to Stay on Track

Flexibility is key when evaluating the progress of a joint business plan. As you monitor KPIs and conduct reviews, you may identify areas where adjustments are required to maximize success. Making these necessary adjustments allows you to adapt your strategies, overcome challenges, and capitalize on emerging opportunities.

Consider the following steps for making adjustments:

  • Analyze data: Examine the data collected from KPI monitoring and reviews to identify trends or patterns that require attention.
  • Identify areas for improvement: Pinpoint specific areas within the joint business plan that need adjustment based on performance gaps or changing market conditions.
  • Collaborate with partners: Engage in open discussions with your partners to gather their input and insights regarding potential adjustments.
  • Develop action plans: Create detailed action plans outlining the necessary steps to implement changes effectively.
  • Monitor results: Continuously monitor the impact of these adjustments on performance metrics and assess their effectiveness.

By regularly evaluating the progress of your joint business plan, monitoring KPIs, conducting reviews, and making necessary adjustments, you can enhance its chances of success. This iterative process ensures that your joint business plan remains aligned with evolving market dynamics and increases your likelihood of achieving mutually beneficial outcomes.

Recommended Reading: Copywriter for Small Business: Get The Maximum Result

Finding the right partner for joint business planning

Identifying the ideal partner for joint business planning is crucial to the success of any collaborative endeavor .

It requires careful consideration of various factors, including complementary strengths and expertise, compatibility in terms of values and culture, as well as conducting due diligence before entering into an agreement.

Identifying Complementary Strengths and Expertise

When seeking a business partner for joint business planning, it’s essential to identify individuals or organizations with complementary strengths and expertise. This means looking for partners who possess skills and resources that complement your own.

For example, if you’re a manufacturer looking to expand your distribution channels, partnering with a retailer or distributor who has established relationships with consumers can be highly advantageous.

Consider the following when assessing complementary strengths:

  • Look for partners who excel in areas where you may have limitations or gaps.
  • Seek out individuals or organizations that bring unique perspectives and capabilities to the table.
  • Evaluate potential partners based on their track record of success in relevant areas.

Assessing Compatibility in Terms of Values and Culture

In addition to complementary strengths, compatibility in terms of values and culture is vital for a successful partnership. When embarking on joint business planning, you’ll be working closely together towards shared goals.

Therefore, aligning values and having a similar organizational culture can foster effective collaboration.

Here are some considerations when assessing compatibility:

  • Evaluate whether your partner shares similar core values such as integrity, transparency, and customer-centricity.
  • Assess whether there is alignment in terms of long-term objectives and vision.
  • Consider how well your respective cultures will blend together to create a harmonious working relationship.

Conducting Due Diligence Before Entering into an Agreement

Before finalizing any partnership agreement, it’s crucial to conduct thorough due diligence. This involves gathering information about potential partners to ensure they are reliable, trustworthy, financially stable, and have a good reputation within their industry.

Here are some steps to consider during the due diligence process:

  • Research: Conduct extensive research on potential partners, including their history, financials, and reputation.
  • References: Reach out to their existing or past business partners to gather insights into their reliability and performance.
  • Legal Assistance: Engage legal professionals to review contracts and agreements to ensure they protect your interests.
  • Pilot Projects: Consider starting with small-scale pilot projects to test compatibility before committing to a long-term partnership.

Recommended Reading: LinkedIn Search Appearances: Boost Your Profile

Maintaining a common vision and strategic objectives

To ensure the success of a joint business plan, it is crucial to maintain a common vision and strategic objectives with your partner. This involves aligning long-term goals and ensuring a shared understanding of strategic priorities. By continuously reinforcing the importance of collaboration, you can foster a strong partnership that drives mutual growth.

Aligning Long-Term Goals with the Partner’s Vision

When embarking on a joint business plan, it is essential to align your objectives with your partner’s vision.

This alignment ensures that both parties are working towards a common goal and have a clear understanding of each other’s expectations. By taking the time to understand your partner’s vision, you can identify areas where your goals intersect and collaborate effectively.

Ensuring Shared Understanding of Strategic Priorities

In order to execute a successful joint business plan, it is vital to establish shared understanding of strategic priorities.

This involves open communication and regular discussions about the strategies and tactics that will be employed to achieve desired outcomes. By aligning your strategies with those of your partner, you can create synergy and maximize the impact of your joint efforts.

Continuously Reinforcing the Importance of Collaboration

Collaboration is key in any joint business plan, as it allows for the pooling of resources, expertise, and networks. To maintain effective collaboration throughout the partnership, it is important to continuously reinforce its importance.

This can be done through regular check-ins, open communication channels, and providing support where needed. By fostering an environment that encourages collaboration, you can build trust and strengthen the relationship with your partner.

Maintaining a common vision and strategic objectives in a joint business plan requires strong leadership and effective strategy execution. It involves aligning long-term goals with your partner’s vision, ensuring shared understanding of strategic priorities, and continuously reinforcing the importance of collaboration.

You raise the chance of reaching win-win results if you keep this alignment throughout the collaboration. Recall that effective collaborative company planning needs constant communication and a dedication to collaborating to achieve shared objectives.

Recommended Reading: Pink Friday Small Business: Boost Sales with Events

Resources to help you get started with joint business planning

Creating a joint business plan can seem like a daunting task, but fear not! There are plenty of resources available to assist you in this process.

Let’s explore some of these resources that can help you get started with joint business planning.

Online Templates for Creating Joint Business Plans

One helpful resource is the availability of online templates specifically designed for creating joint business plans. These templates provide a structured framework that allows you to outline your goals, strategies, and actions in a clear and organized manner.

With pre-defined sections and prompts, these templates make it easier for you to navigate through the planning process.

  • Saves time and effort by providing a ready-made structure.
  • Ensures consistency and completeness in your joint business plan.
  • Provides guidance on what information to include in each section.
  • May lack customization options for unique business needs.
  • Requires careful adaptation to fit your specific partnership dynamics.

Industry-Specific Case Studies Showcasing Successful Collaborations

Another valuable resource is industry-specific case studies that showcase successful collaborations between businesses. These case studies offer real-life examples of how joint business planning has been implemented effectively across various industries.

By examining these success stories, you can gain insights into best practices, challenges faced, and strategies employed by others in similar partnerships.

  • Offers practical examples that demonstrate the benefits of joint business planning.
  • Provides inspiration and ideas for implementing collaborative strategies.
  • Helps identify potential pitfalls and ways to overcome them.
  • May not directly align with your unique partnership situation.
  • Limited availability of industry-specific case studies may restrict options for certain sectors.

Expert Guides on Effective Partnership Management

To further support your joint business planning efforts, expert guides on effective partnership management are available as well. These guides provide comprehensive advice on building strong partnerships, fostering collaboration, managing conflicts, and maximizing mutual benefits.

They offer valuable insights from experienced professionals who have navigated the complexities of joint business planning.

  • Offers expert advice and proven strategies for successful partnership management.
  • Provides step-by-step guidance on various aspects of joint business planning.
  • Helps you avoid common pitfalls and challenges associated with partnerships.
  • Requires careful adaptation to your specific partnership dynamics.
  • May not address industry-specific nuances or challenges.

Recommended Reading: How to Start a Photography Business with No Experience (A Step-by-Step Guide)

Frequently Asked Questions (FAQs)

Can any type of business benefit from joint business planning.

Absolutely! Joint business planning is applicable across industries and sectors. Whether you’re a small startup or an established corporation, collaborating with another company through joint business planning can bring numerous benefits such as increased market share, cost savings through shared resources, access to new customer segments, enhanced product offerings, and improved overall competitiveness.

How do I find the right partner for joint business planning?

Finding the right partner for joint business planning starts with identifying companies that complement your strengths and fill gaps in your capabilities. Look for organizations with similar values and strategic objectives but different areas of expertise that can add value to your offerings.

Networking events, industry conferences, trade associations, online platforms are great places to connect with potential partners. Take the time to build relationships, assess compatibility, and ensure alignment before diving into joint business planning.

What are some common challenges in joint business planning?

While joint business planning offers numerous benefits, it can also come with its fair share of challenges. Common obstacles include differences in organizational culture and decision-making processes, conflicting priorities and objectives, resource allocation issues, and communication breakdowns.

The key to overcoming these challenges is open and transparent communication, mutual respect, and a willingness to compromise when necessary.

How do you evaluate the progress of a joint business plan?

Evaluating the progress of a joint business plan requires establishing clear metrics and milestones at the outset. Regularly review these indicators to gauge performance against targets.

Maintain open lines of communication with your partner to address any concerns or roadblocks that may arise along the way. By regularly assessing progress and making necessary adjustments, you can ensure that your joint business plan remains on track towards achieving its objectives.

Are there any resources available to help me get started with joint business planning?

Yes! There are several resources available to assist you in getting started with joint business planning. Industry publications, online forums, webinars, and workshops often provide valuable insights and best practices for successful collaboration.

Consulting firms specializing in strategic partnerships can offer guidance tailored to your specific needs. Don’t hesitate to tap into these resources as you embark on your joint business planning journey.

In today’s competitive business landscape, collaboration is key to success. That’s where joint business planning comes in. By partnering with another company and aligning your goals and strategies, you can unlock a whole new level of growth and profitability. Joint business planning allows you to pool resources, share expertise, and leverage each other’s networks to achieve mutually beneficial outcomes.

But it’s not just about the immediate gains. Joint business planning sets the foundation for long-term partnerships built on trust and shared vision. It enables you to navigate challenges together, adapt to market changes swiftly, and seize opportunities that may have been out of reach individually. By working hand in hand with a like-minded partner, you can amplify your impact and create a powerful synergy that propels both businesses forward.

Ready to tap into the power of joint business planning? Start by evaluating potential partners who align with your values and objectives. Establish open lines of communication, set clear expectations, and define measurable goals together. Remember, successful joint business planning requires ongoing collaboration and commitment from both parties. With the right partner by your side, there’s no limit to what you can achieve together.

Taking supplier collaboration to the next level

Companies with advanced procurement functions know that there are limits to the value they can generate by focusing purely on the price of the products and services they buy. These organizations understand that when buyers and suppliers are willing and able to cooperate, they can often find ways to unlock significant new sources of value that benefit them both.

Buyers and suppliers can work together to develop innovative new products, for example, boosting revenues and profits for both parties. They can take an integrated approach to supply-chain optimization, redesigning their processes together to reduce waste and redundant effort, or jointly purchasing raw materials. Or they can collaborate in forecasting, planning, and capacity management—thereby improving service levels, mitigating risks, and strengthening the combined supply chain.

Earlier work has shown that supplier collaboration really does move the needle for companies that do it well. In one McKinsey survey of more than 100 large organizations in multiple sectors, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers (Exhibit 1).

Despite the value at stake, however, the benefits of supplier collaboration have proved difficult to access. While many companies can point to individual examples of successful collaborations with suppliers, executives often tell us that they have struggled to integrate the approach into their overall procurement and supply-chain strategies.

Barriers to collaboration

Several factors make supplier collaboration challenging. Projects may require significant time and management effort before they generate value, leading companies to prioritize simpler, faster initiatives, even if they are worth less. Collaboration requires a change in mind-sets among buyers and suppliers, who may be used to more transactional or even adversarial relationships. And most collaborative efforts need intensive, cross-functional involvement from both sides, a marked change to the normal working methods at many companies. This change from a cost-based to a value-based way of thinking requires a paradigm shift that is often difficult to come by.

The actual value generated by collaborating can also be difficult to quantify, especially when companies are also pursuing more conventional procurement and supply-chain improvement strategies with the same suppliers, or when they are simultaneously updating product designs and production processes. And even when companies have the will to pursue greater levels of supplier collaboration, leaders often admit that they don’t have the skill, lacking the structures they need to design great supplier-collaboration programs, and being short of staff with the capabilities to run them. After all, what great supplier collaboration necessitates is much more than the mere application of a process or framework—it requires the buy-in and long-term commitment of leaders and decision makers.

A shared perspective

To understand more about the factors that hamper or enable supplier-collaboration programs, we partnered with Michigan State University (MSU) to develop a new way of looking at companies’ use of supplier collaboration. The Supplier Collaboration Index (SCI) is a survey- and interview-based benchmarking tool that assesses supplier-collaboration programs over five major dimensions (Exhibit 2).

During 2019, researchers from McKinsey and MSU rolled out the Index in a pilot project involving a dozen leading consumer-goods companies in North America, along with ten to 15 of each company’s strategic suppliers. We collected more than 300 written responses from more than 130 organizations, and conducted in-depth interviews with around 60 buyer and supplier executives. The work provides some important insights on the state of supplier collaboration today, revealing the elements of collaboration that companies and suppliers believe are working well, and the areas that present the greatest challenges.

The results of our consumer-industry benchmark are summarized in Exhibit 3, with average buyer and supplier perceptions of their own collaboration programs rated from one (low) to ten (high) in each of the five dimensions.

Overall, the research reveals close alignment between buyers and suppliers on the relative strength of most dimensions. It also shows a clear drop in perceptions of strength as the discussion moves from theory (strategic alignment) to execution (value creation and sharing, organizational governance).

The in-depth interviews conducted with senior buyer and supplier personnel as part of the SCI data-collection process provide further insights into the challenges companies face in each of the five dimensions, while also revealing some examples of best practices that lower-performing companies can emulate.

Would you like to learn more about our Operations Practice ?

Achieving strategic alignment.

Benchmark participants understood who their strategic suppliers are, although they do not all use formal segmentation approaches to categorize their supply bases. Likewise, suppliers understood their strategic importance to their customers. Buyers and suppliers agreed that there was good alignment on the pursuit of sources of value beyond cost—but also agreed that their efforts to capture these value sources were not always successful.

The first step for an organization is to define what it wants to achieve from its collaboration efforts, and what it needs to do to realize those goals. Internal alignment and commitment by senior managers to ensure appropriate resources are available is also critical. For example, in a quest to develop more sustainable detergents, Unilever partnered with Novozyme—a major supplier of enzymes— to jointly develop new enzyme solutions. The collaboration leveraged each party’s strengths, merging Unilever’s understanding of which types of stains and materials were most relevant with Novozyme’s reagent-optimization capabilities. The partnership resulted in two enzyme innovations that improved product performance, increased market penetration, and allowed the company to target premium-branded competitors. Moreover, the new formulation performed well at lower temperatures, helping customers save energy and reduce CO2 emissions.

Joint business planning

Joint business planning is a collaborative planning process in which the company and its supplier align on short- and long-term business objectives, agree on mutual targets, and jointly develop plans to achieve set objectives (exhibit). It brings a formal approach to collaboration with suppliers and helps to engage stakeholders from different functions in the collaboration effort.

Joint business planning works best when companies have a clear understanding of the strategic suppliers with which they want to engage, and where they have strong core supplier management capabilities in place. The approach can be applied at several levels. At its simplest, joint planning can involve aligning on metrics and value sharing agreements. At its most advanced it can include joint investment to create new sources of value.

Other organizations participating in SCI have introduced formal methods to promote greater strategic alignment, such as by introducing a joint business-planning approach. The buyer and supplier align on short- and long-term business objectives, set out mutual targets, and jointly develop plans to achieve objectives. Areas of opportunity for collaboration include growth, innovation, productivity, quality, and margins (see sidebar, “Joint business planning”).

Communication and trust

Buyers and sellers both describe high levels of trust in relationships that they consider strategic. In most cases, that trust has been built up over time, based on longstanding business relationships. Companies involved in collaborations tend to appreciate each other’s capabilities, understand each other’s businesses, and believe that their partners will stick to the commitments they make.

Companies are less convinced, however, that their partners will be ready to put the interests of the collaboration above the interests of their own organization. Many interview participants noted that greater transparency over sensitive areas such as costs was key to attaining the highest level of collaboration, but said that this goal was often difficult to achieve.

Building trust takes time and effort. Often this means starting small, with simple collaboration efforts that deliver results quickly, building momentum. This way, companies can demonstrate a serious approach to collaboration and their willingness to share gains fairly. More importantly, companies should base their relationships on transparency and information sharing as a foundation, with the expectation that greater trust will follow.

Cosmetics company L’Oréal follows this approach to encourage collaborative innovation. Through open dialogs concerning company goals and long-term commitment, L’Oréal has been able to establish an effective codevelopment process. The company’s annual “Cherry Pack” exhibition, for example, offers suppliers a preview of the consumer trends that the company will be working on, and asks them to develop packaging solutions in harmony with these trends. During the exhibition, L’Oréal creates a trust-based forum for suppliers to present the ideas and products in development—including ideas that have yet to be patented. The forum thus gives suppliers access to practical short- and long-term ideas and projects that ultimately accelerate packaging innovation.

Cross-functional engagement

To generate value from changes in manufacturing methods, quality-assurance regimes, or supply-chain processes, representatives from the respective functions on both sides of the partnership will need to work together. Yet this type of cross-functional engagement is something most benchmark participants find extremely difficult. Executives reported that while traditional relationships—such as those between buyers and supplier sales teams, or suppliers and buyer R&D functions—were strong, wider cross-functional engagement was patchy and poorly managed at best.

Improving cross-functional engagement is a leadership issue. Organizations with the most successful collaboration programs use a formal approach to manage cross-functional teams, with clearly defined roles and responsibilities on both sides of the partnership, backed by changes to internal incentive systems to promote full participation in collaboration projects.

Some companies, such as P&G, have taken a step further in creating cross-functional teams solely focused on joint innovation with suppliers. By creating a practice of “open innovation,” P&G aimed to coordinate its efforts and leverage the skills and interests of people throughout the company to assess the competitive landscape, identify types of innovation that can help develop disruptive ideas, and identify appropriate external partners. For innovation to work, P&G has stressed the need to integrate cross-functional teams that, in turn, integrate business strategy with operations—which requires a broad network of interactions.

Unlocking enterprise efficiencies through zero-based design

Unlocking enterprise efficiencies through zero-based design

Value creation and sharing.

The pursuit of shared value is the reason buyers and suppliers take part in collaboration projects, so unsurprisingly procurement executives consider it the most important dimension of their collaboration efforts. Yet few participants in our study track the impact of collaboration on sources of value beyond cost reductions. Where companies have tracked the impact of collaboration projects on revenues, margins, or other metrics, they have done so only for a handful of high-profile projects.

For buyers, additional volume remains the most common way that the extra value created by collaboration projects is shared. Some partnerships had made use of other types of value sharing, such as performance-based incentives for suppliers. Where these approaches were employed, both buyers and suppliers were happy with the results. That suggests significant opportunity for companies to expand their use of such approaches, provided they can reach agreement on cost baselines and incentive structures.

Cleansheet cost modeling

Many of the potential sources of value targeted by supplier-collaboration efforts depend upon a mutual understanding of the true costs of a product or service. Achieving that sort of transparency can, however, be difficult in buyer-supplier relationships. Suppliers may be reluctant to reveal too much about their own manufacturing processes and costs, fearing that this information will be used against them in negotiations, and buyers may not want to let suppliers know just how critical they are.

Cleansheet cost-modeling approaches have risen to prominence in recent years as a tool to allow an open, fact-based cost discussion between buyers and suppliers. A cleansheet calculates the cost of each step during the creation of a product, component, or service, using a database of information on the materials, labor, factory space, equipment, time, and energy required to complete each step—and the implications for the desired product volumes on the utilization of those resources.

Cleansheet cost transparency helps collaboration partners generate ideas for design and process improvements. The approach can also underpin value-sharing agreements, allowing organizations to establish clear cost baselines and measure improvements against them.

Cost transparency is a critical enabler here. Some companies have found cleansheet cost modeling to be a very effective way to conduct fact-based discussions on costs and improvement opportunities with their collaboration partners (see sidebar, “Cleansheet cost modeling”).

ASML, a lithography-equipment manufacturer for the semiconductor industry, operates a value-sharing mechanism for its suppliers. The company allows suppliers to maintain healthy margins (as a volatility buffer), provides financing for the infrastructure needed to make its products, and offers staggered purchase guarantees. In this way, ASML incentivizes and rewards its strategic suppliers for prioritizing its business, gains access to cutting-edge technology, and reduces costs and improves stability in an industry with short lifecycles affected by substantial swings in demand.

Throughout its long history of collaboration with suppliers, P&G has used a wide range of commercial models to partner with suppliers across the entire R&D chain. Its value-sharing models range from shared fund pools for codevelopment of products to licensing agreements for commercialization. The flexibility to employ different mechanisms has allowed P&G to tap into supplier innovation without the need to overinvest in the development of deep partnerships with every potential collaborator.

Organization and governance

Like cross-functional engagement, the organization and governance of supplier-collaboration programs suffers from a lack of formal structures and processes. Interviewees admitted that their companies, both buyers and suppliers, were relatively lax in tracking and valuing their supplier-collaboration efforts. Few organizations had done anything to align the incentives of project participants within their own organizations, and most relied on informal mechanisms to share feedback or review progress with partners.

Introducing a clearer governance structure for the overall supplier-collaboration program and for individual projects has the potential to significantly improve outcomes in most organizations. Two-way scorecards, for example, allow buyers and suppliers to let each other know if they are effectively supporting the goals of the program. Governance of collaboration projects should be cross-functional, with appropriate incentives introduced throughout the organization to encourage full participation and ensure both parties pursue long-term win-win opportunities, not just short-term savings.

Supplier advisory boards

A supplier advisory board (or council) serves as a neutral and collaborative forum for the exchange of ideas between the host company and a group of strategic suppliers. Such boards are widely used by companies with mature procurement organizations, and they do so for a variety of reasons. A board may advise on key industry trends, risks, and potentially disruptive threats in the supplier ecosystem. Or they may provide a place for companies to explore the potential impact of business decisions on sourcing strategy. Some boards act as a hub for projects to improve operational processes between the company and its suppliers. Others are assembled to support special projects, such as joint innovation programs or sustainability initiatives.

An advisory board is usually chaired by an executive business sponsor and sourcing lead. Buyer-side members include representatives of multiple functions, such as marketing, legal, and R&D. On the supplier side, companies usually nominate a lead strategic supplier, along with around a dozen supplier board members chosen from the strategic supplier base. Those suppliers are selected after evaluation against a matrix of criteria determined by the objectives of the board.

Several leading organizations have created supplier advisory boards to provide high-level support and guidance for their supplier-management and supplier-collaboration programs. These boards act as a forum for the supplier base to advise on key issues and collaborate with the organization to further its business agenda. Companies use their supplier advisory boards to help manage risks and disruptive threats to the supplier ecosystem, and such boards also serve as a neutral space for the exchange of ideas between the host company and a group of strategic suppliers (see sidebar, “Supplier advisory boards”).

Toyota has been a prominent example of supplier collaboration, whose success can be explained in part by the use of clearly defined targets and supplier-performance metrics. These are built into contracts that hold suppliers accountable for continued improvements in quality, cost, and delivery performance. The company governs supplier relationships using a steering committee, staffed with relevant senior stakeholders from both organizations, to define the scope and objectives of the collaboration, review progress, and take action to remove roadblocks and resolve issues as they arise.

The Supplier Collaboration Index has already revealed several major opportunities for companies seeking to expand and improve their supplier-collaboration efforts. Some of those opportunities are quite straightforward, such as more proactive management of cross-functional teams involved in collaboration projects, or the introduction of formal governance systems to manage those projects. Others, such as greater cost transparency between buyers and suppliers, or the use of performance-based supplier-incentive mechanisms, may require more time and effort to achieve.

Excelling at supplier collaboration requires a more active and engaged working relationship with suppliers. It also calls for a change in mindset, encouraging both buyers and suppliers to commit to the long-term pursuit of value from their collaborative relationships. We end with eight steps that any organization can take to put its collaboration efforts on the right track.

  • Start by identifying those suppliers that offer unique joint opportunities to create and retain significant value.
  • Align strategically with these partners to define joint objectives and develop a compelling business case for both parties.
  • Adopt a methodical and structured approach to define the scope, pace and targets for joint projects, including a clear methodology on how to measure value creation.
  • Define simple, clear value-sharing mechanisms, and align incentives of the cross-functional team accordingly.
  • Invest in allocating the appropriate resources and building the required infrastructure to support the program.
  • Create a governance model focused on performance, implementation tracking, and hardwiring supplier collaboration into core operational processes.
  • Foster a culture founded in proactive communication, transparency, consistency, and knowledge sharing, to strengthen long-term partnerships.
  • Invest in building world-class organizational capabilities to ensure sustainability over time.

For any organization seeking to improve the performance of its procurement practices, supplier collaboration can no longer be considered a nice-to-have. As companies reach the limits of conventional purchasing practices, further progress will require a new approach based on close relationships, cross-functional engagement, and the shared pursuit of new value.

Agustin Gutierrez is a partner in McKinsey’s Mexico City office; Ashish Kothari is a partner in the Denver office, Carolina Mazuera is a consultant in the Miami office, and Tobias Schoenherr is the Hoagland-Metzler Endowed Professor of Purchasing and Supply Management at Michigan State University.

The authors wish to thank Juby Cherian, Pat Mitchell, and Valeria Saborio for their contributions to this article.

Explore a career with us

Related articles.

COVID-19: Implications for business

COVID-19: Implications for business

Unlocking enterprise efficiencies through zero-based design

Reopening safely: Sample practices from essential businesses

How to Create an Effective Joint Business Plan

rocket

For two businesses to form a joint venture, they need a plan that outlines the nature of the business coalition. A joint business plan defines the state of the companies involved, the purpose of the joint business and the partners’ responsibilities.

A joint business plan describes all the activities that these business ventures must carry out to achieve specific goals.

The relationship between the two parties and their goals must be clearly understood. After creating the business plan, it must go through a legal review to test its legitimacy. In your business planning, you work together in a collaborative relationship toward mutually agreed terms.

Business planning for joint ventures helps the parties leverage resources, reduce costs, combine expertise and/or enter foreign markets. A well-defined joint business plan is vital for any agreement and business strategy.

What is a joint business plan?

A joint business plan is a document that defines a merger between two or more companies. It describes the purpose and responsibilities of each partner in the incorporation. You may also see it as a collaborative process of planning where a supplier and retailer agree on both long- and short-term goals, including growth, finances and shared initiatives for profitability.

The purpose of a joint business plan is to design a win-win strategy for increasing consumer sales. This plan allows the partners to build a formidable relationship with retailers for mutual support and benefits. Having agreed upon goals, both parties share insights on a common vision for better support, customer growth, enhanced process and improved sales.

Business planning depends on interested parties sharing their plans with defined mutual growth opportunities. The partners can detail and share strategic planning, growth strategy, tactics and any area of competitive advantage.

The joint business plan is created once a partnership agreement is mutually beneficial and defined. Parties would draw up, approve and sign a formal contract before the execution of the plan. This is followed by a periodic review of joint scorecards based on necessary performance metrics to fine-tune strategies.

The joint business planning process comprises every possible logistic, including human resources planning and how to reach project milestones. Resource accountability is vital to building trust. Your best tool for transparent resource use and accountability is a resource planner .

If the employees of the venture will need to go to a different location, the venture will likely have difficulty planning their tasks and locations. TimeTrack Auto-Scheduling provides joint ventures with a transparent planning tool that reduces effort and enhances error-free shift planning.

joint-business-plan-timetrack-blog

TimeTrack Auto-Scheduling

Types of joint business plans

Standard plan.

This is often referred to as the working plan. It offers an overview of the company, outlines its goals, and details when and how entrepreneurs wish to achieve the goals. Such a plan helps secure funds, investments or loans. Within the plan, you could specify how you will use investor funds and their potential profits.

What-if plan

Sometimes things don’t go as planned in business. The what-if business plan defines the various roadblocks that a company might face as it strives to achieve its business objectives. The venture is largely at the whims of external factors, including the supply chain and stock market. You need to outline a predictable scenario to let business partners know how to recover their funds.

One-page plan

While a detailed plan is vital, there are instances where you will need to provide an abridged version of your plan. This one-page business plan outlines the summary of demand, solution, model, management team and action plan.

Start-up plan

A business plan for entrepreneurs, especially those in the early stages of their business planning, will need a start-up business plan. It is designed to give potential investors the bigger picture and outline how you want to achieve your goals. It often includes an executive summary, background, product and service descriptions, market analysis, costs and financial projections.

Expansion plan

This is a business plan that’s necessary when you need to scale your business and identify the necessary resources for its development. These could be financial investment, an additional workforce, new products or raw materials. This plan will detail the business background, needed resources and how they will contribute to growth and business expansion.

Operational plan

An operational business plan revolves around near-term goals , especially those you will work towards achieving within a year. It defines the activities your venture will focus on and emphasizes the role of the workforce and budgeting in achieving the operational goals. In most situations, the heads of departments are key participants in the operational plans because of the need for approval in achieving the goals.

Strategic business plan

This is different from the others because it focuses on how departments can work together. This venture plan is more comprehensive and requires senior-level approval before implementing goals. This plan answers the questions of how to achieve goals, what resources are needed and the execution plans for achieving the goals.

joint-business-plans-timetrack-blog-tips

Joint business planning tips

Companies that benefit from a joint business plan

A joint venture exists mainly as a contract between new cooperating partners. In forming a joint venture, each of the business partners agrees to the assets they will bring to the table and how income and expenses will be shared.

While a joint venture is a corporation between two or more entities, each of the companies, be it an individual, company, corporation or group of individuals, still has its original legal status, though not all joint ventures result in a new business entity. These companies could be sole proprietorships or partnerships, limited partnerships, corporations, limited liability companies or non-profit organizations.

Examples of a joint business plan

Perhaps you have an online venture selling high-quality products at reasonable prices, while needing to increase brand strength. Such an example of a joint business plan outlines a company overview, executive summary, product and service offerings, marketing strategy, market analysis, budget and financial planning.

A joint business plan may be designed for ventures rendering menu services such as lattes, espresso, coffee, cappuccinos, and sandwiches. The business plan outlines an executive summary and studies your competition , target market, marketing plan, ownership structure and operational plan.

A joint venture could be designed around offering services such as shipping, faxing, postal and copying to residents to conduct research , create debate space and generate ideas. This example of a business plan will include an executive summary, a vision and mission statement, goals, objectives, and measures, organizational structure, marketing analysis and a financial plan.

Top strategies for effective joint business plan

In a joint business venture, there are risks which include rising complexity, cultural diversity, high failure rates and language diversity. The strategies detailed below will benefit the venture in navigating the challenges through effective joint business planning.

Strategic plan

Strategic global planning is an effective business practice for entering a new market. It helps to identify opportunities and threats. Before beginning strategic planning, be sure that a joint venture is the right action for you. Compare the strengths and weaknesses of the partners to confirm a good match. Your strategic plan should explain why you want to collaborate with that partner and what you hope to achieve, how to monitor trends and collect good data. Some of the reasons you may wish for a new joint partner may be to enter a new market, geographic expansion, financing, etc.

The right partner

The choice of partner is crucial, but what is more important is understanding the effectiveness of partners in delivering on their promises. Do your due diligence on your partner’s attitude toward collaboration, performance and level of commitment. What about sharing the same objectives?

Effective communication for a great relationship

After your investigation, if you deem the partner fit, find mutual ground. Communication is the key to a good relationship. Make sure your partner understands the foundation of the joint venture and agreement. Ensure they agree on human resources, financial contributions and goals. To consolidate the stability of your venture, be upfront, honest and transparent about your objectives.

Clarify how, what, and where

Be clear on the vision, strategic plans and scoreboard to ensure that everyone is energized and united about the goal. Define a common working pattern. This has to include conflict management, decision-making, collaboration, problem-solving and technology strategies. Focus on win-win solutions.

Track performance

Is everyone putting in the hours and making productive headway? One way to gauge this information is by time tracking. One of the challenges for companies whose employees work in shifts and in different locations is tracking attendance. TimeTrack Attendance Tracking helps companies monitor employees’ work hours and leave days, so that managers can stay up to date on potential delays.

joint-business-plan-timetrack-blog-tips

TimeTrack Attendance Tracking

Once you have set out the goals and vision for the new venture, establish key performance indicators, the data you want to track and the process to measure those performance metrics. This involves creating a joint scorecard for each metric against trends and competition. The targets you set must guard against possible problems the partners might encounter.

Build trust

Your best joint business strategy is to build trust and create value, without which your partnership is bound to fail. Trust is the foundation of every partnership. It is an important factor in business planning. Without it, neither partner can succeed. How do you manage diverse cultures, interests and languages if the partners lack trust? Trust builds team strength and encourages creativity while promoting collaboration.

Good leadership

The cost of poor leadership is so high that you must not venture into joint partnership without assurance of good leadership. Focus on building good leadership and not just creating “bosses”. Leadership presents the biggest opportunities to change the performance narrative. Create a strong leadership team, from whom all employees can learn.

A joint business venture is not without its challenges. To ensure a successful collaboration, focus on a clear strategy, excellent communication, transparency and strong leadership.

valentine-author-bio

I am a researcher, writer, and self-published author. Over the last 9 years, I have dedicated my time to delivering unique content to startups and non-governmental organizations and have covered several topics, including wellness, technology, and entrepreneurship. I am now passionate about how time efficiency affects productivity, business performance, and profitability.

You might also like

client-tracker

CMKG-newlogo-01.png

  • Instructor-Led Virtual Training
  • Instructor-Led Classroom Training
  • eLearning Training Solutions for Individuals
  • Assessments
  • Team Training for Retailers
  • Team Training for Suppliers
  • Sales Training
  • Space Management Training
  • Annual Learning Subscription
  • Complimentary Assessments
  • Complimentary Learning Tools
  • Thought-Leadership Blog
  • Train Ahead — Our Difference
  • Individual Learner Login to eLearning
  • Schedule Consult

Improve Collaboration and Joint Business Planning Results in 3 Steps

joint business planning meaning

Collaboration is on many organization’s strategic plans, with effective Joint Business Planning (JBP) being the outcome. Retailers’ and Vendors’ have the opportunity to determine mutual areas of interest and build their businesses in a collaborative way — namely by taking steps to improve Shopper satisfaction with a better experience.

However, effective Collaboration and JBP require more than a desire or written strategic plan. Both require that your organization undertake 3 consecutive steps:

  • Prepare your organization internally for collaboration;
  • Align your internal approach across your multifunctional teams through common training; and
  • Implement external Collaboration and Joint Business Planning.

Collaboration and Joint Business Planning can help both Retailers and Vendors manage the change that continues to dominate, including:

  • Changing partner needs and expectations between Retailers and Vendors
  • Changing market and Shopper,
  • Less resources available internally due to downsizing / consolidation, and
  • Increased requirements due to more and bigger data and a more complex Shopper.

Here are some resources to help you get started:

  • Complimentary Download: Collaborative Relationship Continuum Model
  • Course Video Preview: Collaborative Business Planning
  • Course Overview:   Collaborative Business Planning

3 Steps: Improved Collaboration and Joint Business Planning 

Step 1: be prepared internally.

It’s important for teams and organizations to first understand what collaboration is: 

Collaboration is highly diversified multifunctional teams   working together inside and outside a Retailer / Vendor with the purpose to create value   by improving innovation, Shopper relationships   and efficiency while leveraging technology for effective interactions in the virtual and physical space. (Carlos Dominguez, Cisco) (modified by Sue Nicholls, CMKG)

Are you ready to collaborate?  Start by defining your assets, prioritizing your opportunities and seeking out the right business partners. The questions below can help determine if your organization is ready to collaborate ( taken from the Category Management Association’s whitepaper on “Strategic Collaboration for Shopper Satisfaction” ):

  • What do you want to gain by collaborating?
  • Is your company set up to foster and support collaboration?
  • What multifunctional resources / data / technology / intellectual property can be shared with your collaborative business partners?

Step 2: Create Internal Alignment

Moving to a collaborative approach requires your multifunctional teams to be able to see the “bigger picture”, turn data into insights, think beyond brand into total category, and better understand the consumer AND Shopper. These responsibilities must be expanded to marketing, sales, private label and retail teams in an aligned approach. 

Alignment of all functions in your organization occurs through engagement and training in category management . In fact, training approaches need to change for most organizations, as traditional “point and click” linear approaches based on a new data source or tactic no longer suffice. In a collaborative approach, teams need to start thinking more strategically about how the decisions and recommendations they make align to the overall strategies for the organization and for their external collaborative business partners. This can be accomplished by equipping multifunctional teams with a common set of knowledge and skills acquired through training courses. 

Role-based training in combination with strategic training will help individuals and teams feel more confident they are making choices and recommendations that match with your overall collaborative efforts and Shopper.

Step 3: Move to External Collaboration and Joint Business Planning

Now that you’ve established where you are currently at with your Retailer or Vendor partners, you can undertake Joint Business Planning (JBP) — the “next level” in a collaborative relationship. JBP should build from foundations established in collaborative relationships.

In theory, Joint Business Planning is a collaborative effort between the Vendor and Retailer which involves open sharing of information. Shared information allows for the creation of a common, mutually-agreed-to business plan. But let me insert a bit of reality into this idyllic definition. From a basic level, it is a business plan that is developed between Vendors and Retailers, through sharing of select information. The plan should include expected trends, initiatives and the forecasted market environment, so that there is a greater chance for the goals and objectives within the plan to be attained. 

The higher the level of collaboration between the organizations, the closer you will move toward the theoretical definition of Joint Business Planning.

A successful Joint Business Plan requires each party to clearly understand the others’ goals, business and customer requirements. This shared understanding becomes the foundation of the JBP, with both businesses pooling their resources and expertise to achieve specific goals. The risks and rewards of the plan are also shared.

While specific approaches vary by Retailer, the following framework from CMKG category management training provides the key steps associated with most joint business planning processes:

jbp framework by Category Management Knowledge Group

Let’s look at the first step for the Retailer – identifying corporate strategies and goals . The Retailer, usually led by the senior management team, creates the sales, cost of goods and operating targets for the upcoming year. When you look at a Retailer’s income statement , there are 3 ways that a Retailer can influence net income:

  • increased sales;
  • decreased cost of goods sold; and
  • decreased operating expenses.

Retailers’ targets will most likely include initiatives behind all three of these components of the income statement to increase their net margin and income. Examples of initiatives may include new store openings, the current market, and private label opportunities for the Retailer. Other initiatives may be based on supply chain upgrades, information technology upgrades, or any other types of business process improvements that will impact the bottom line for the Retailer.

In summary, if you have properly defined collaboration internally and strategically selected your business partners upfront, you are less likely to run into problems. Problems are likely to arise in a Joint Business Plan if:

  • There are unclear objectives, one of the parties was not transparent in their sharing of information, or the plan was not properly communicated to everyone involved.
  • The partners have different objectives or hidden agendas in the joint venture.
  • One party is investing much more in terms of expertise, financial, and/or assets than the other party, creating an imbalance.
  • Different cultures and management styles with partners may result in poor integration and cooperation.
  • The partners don’t provide sufficient leadership and support in the early stages of the program.

Download the "Collaborative Relationship Continuum Model" PDF Document from Category Management Knowledge Group

The Opportunity?  For Retailers and Vendors to define mutual areas of interest, build business in a collaborative way, and improve the Shopper experience. 

Want to learn more about Collaborative and Joint Business Planning? Category Management Knowledge Group can help you, your team or your organization through a single online, live or webinar course or a customized program. We have some great category management training options available to meet your needs. You can preview our brand new, accredited  Collaborative Business Planning   course below:

Topics: Category Management , Strategic Collaboration / Joint Business Planning

Written by Sue Nicholls, Founder & President CMKG

Posts by audience.

  • Analytics Work (15)
  • Business Acumen Development (2)
  • Business Reviews / Category Reviews (1)
  • Career Advancement (1)
  • Category Analytics (7)
  • Category Definition Work (5)

Latest Posts

Empowering success: trusted online & instructor-led training solutions for retailers, suppliers and solution providers, about cmkg.org.

We're a global training company in Canada, dedicated to retailers, suppliers and solution providers. Whether you're a category manager or part of a sales or marketing team, our personalized programs, for organizations, teams and individuals, are tailored to elevate your skills.

[email protected]

shoptraining.cmkg.org

readytolearn.cmkg.org

QUICK LINKS

  • Sue’s Thought Leadership Blog
  • Category Management Quarterly Newsletter

Subscribe to Sue Nicholls’ Thought Leadership Blog.

Subscribe to our Industry Updates Newsletter

CMKG-newlogo-transparent.png

Complimentary Learning Resource from CMKG.ORG

Joint business planning resource guide.

JBP: The Brave Approach to Writing a Joint Business Plan

Written By:

Avatar for Darren A. Smith

How you can take the Brave Approach to Writing a Joint Business Plan – JBP – with a UK Supermarket:

Writing a Joint Business Plan (JBP), creating Joint Business plans, JBPs, or terms negotiations, as they can be known, are all relatively new phenomena in the world of supermarkets and suppliers. Whilst some supermarkets and suppliers, particularly the brands, have talked about joint business planning for some time, it is only in the last few years that it has become ‘business as usual’. Now featured in industry news and some Joint Business Plans are published online – This JBP is for Tesco and Nestle in Poland.

The first moves towards a JBP were made when Category Management and ECR made an appearance in the 1990s with tools like the Category Scorecard. Hard-nosed buyers and sceptical account managers reluctantly dipped their toes in the water of true collaboration. Though, as Stephen Covey writes in Habit 4 win:win, the only way forward is together for mutual benefit. The definition of joint business planning is to work with a collaborative mindset towards mutual goals agreed upon for the benefit of the supermarket, supplier and shopper.

The Brave Approach to Writing a Joint Business Plan with a UK Supermarket is about helping UK supermarket suppliers to identify their true business objectives . Also, to understand what is strategic planning, identify the business terms and create a business plan that is worth having for both parties. Here are 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket. This is because a supplier that does, will be best in class:

1. Stating the Blindingly Obvious – A Joint Business Plan is All About Trust

In Accenture’s free report on joint business planning, they talk of a change in mindset for both parties to achieve ‘Increased trust among parties’. And, of course, Accenture is right that trust is absolutely essential for a joint business plan to be effective. Plus, the IGD industry survey on Category Management Capability and Partnership of 2014, said that ‘Too often trust is the biggest barrier to putting any proposal into action’.

The challenge is that trust is hard to build and even harder to understand, particularly for people representing two large companies, where the aim is to make as much money as you can, usually by giving the other party less.

Discussing trust can be a sensitive topic and a brave topic to raise. Doing so provides a solid foundation to build upon. The simple choice is to either raise these issues now or to become frustrated when nothing happens. Better now because both parties are wanting to build a future together.

Action: Add ‘Building further trust’ as an early agenda point in your joint business planning meeting.

Purple trust equation for leadership skills

2. KISS is the Route that Succeeds Most with Joint Business Plans

KISS Keep It Simple Stupid acronym with kiss icon in pink

KISS is a mnemonic that is often said and rarely used. In joint business planning the watch out is not to write a joint business plan together where people spend days locked away in darkened rooms solving the vision, the big category problems, discussing shopper switching, the next range review, why promotions don’t work, and the ‘kitchen sink’. The challenge and the brave approach is to work on less to achieve more.

Scoping what both parties want to achieve is essential and then identifying the 80:20 of those items. The objectives will be easily identified and usually around, ‘To write a joint business plan that delivers x growth/market share/sales by <date>’. The scope is hard. The important part because it might be just to complete a simple one-page document showing:

  • Category Targets
  • Category Measures
  • Enabling Big Projects
  • Project Milestones
  • Ways of Working

This document could be just one page. But it is a bought-in, thrashed and motivating page. A page that both parties agree to start with and then review in 3 months. An 18-month plan is about the right timescale to tackle a joint business plan. There are those that will advocate 3 years and even 5-year business plans are needed. The challenge is that most supermarket buyers will not be in place beyond 18 months, and many account managers too.

Action: Agree on the scope of the joint business plan. Divide a page into two, headed up with the scope and then 2 columns; In and Out. Agree on what is in scope, e.g. Discussions that are big picture and what is out of scope, e.g. The day-to-day detail.

3. Naming the Big Project Outcomes is the Key to Success

In our Time Management Training course we talk with the learners about the importance of having a project list and describe the daily to-do list as the wheels of a car, and the project list as the steering wheel. Those without a project list fail to steer towards their KPIs and KRAs , preferring to work on the day-to-day, refusing to acknowledge the big stuff and claiming that they are ‘too busy’.

The same is true of joint business plans and the key is to define the outcome. Instead of writing ‘Promotions Project’, change it to a project outcome title, which could be ‘Promotions Adding Sales of £5m p.a.’. Whilst a subtle change, the difference is that if no traction is made the impact is obvious – £5m lost. Plus, it is less likely that the person will remove the project when the outcome is obvious, and the project owner can genuinely begin with the end in mind – £5m sales to identify.

Making traction on the big projects is essential to see early progress on joint business planning. For each big project, the collaborators need to agree on the first 3 practical and simple actions. These 3 actions will get the project moving. Even if those actions are to get together for 1 hour to brainstorm. Maybe brainstorm how to achieve £5m additional sales from promotions. It is imperative that these debates are not tackled at the Business Planning meeting. This is because it is ‘scope creep’. Which means that it is against the scope that was agreed. Plus, the meeting will achieve very little because too much is trying to be achieved.

Action: Change project titles to project outcomes and agree on the first 3 practical and simple steps for each project.

4. A Simple Dashboard Every 2 Weeks to Keep Things Moving

The experience of most people is that business plans are built with love and sit on a shelf with hate. Their examples have taught them that joint business planning is a necessary evil and ultimately achieves very little.

The brave move is to change your mindset. Get out of the self-fulfilling prophecy, by doing Joint Business Plans differently to the last 10 times. Helping to achieve that is a simple dashboard showing the Category Targets, Category Measures, Enabling Big Projects, Project Milestones, & Ways of Working and most importantly, the progress, with a short commentary. Ideally, on one page, the dashboard is published every 2 weeks. Fortnightly because 1 week is not long enough to see progress and one month is too long if progress is going off-course.

Motorcycle Dashboard with lights and meters

By having a dashboard the joint business plan is kept alive.

Action: Propose a simple dashboard that is to be published every 2 weeks, for the group to approve.

Free Download: JBP Template

Please contact us if you have any questions, 5. reviewing the joint business plan quarterly together.

A smaller team is a brave move. This is because, during the landing of Category Management and ECR in the 90s, the supermarket team and the supplier team would be around 12 people each.

Whilst this was more a demonstration of collaboration and ‘equalling the fight’ than anything else, progress was slow. Nowadays a smaller team can achieve more if they accept that their accountability is to get the information, persuade the other departments, and basically make progress, not being able to cite every other department in their company as the reason for not achieving the required progress.

A smaller team should meet every quarter with the only point on the agenda to discuss the joint business plan. These dates need to be diarised for the full 18 months. Again, the scope is important because the temptation will be to discuss the other 100 issues that need addressing. But bravely accepting that the joint business plan, if delivered, will achieve everyone’s goals, then this is the only topic of discussion.

Beginning with a refresh of what the joint business plan looks like, the agenda should look like this:

  • Refresh the joint business plan.
  • Ways of Working – Have these been adhered to? What else needs to be done?
  • Performance Vs the agreed targets.
  • Project progress Vs the agreed milestones.
  • Discuss the usefulness of the dashboard, not being tempted to make it too onerous.
  • Run through the actions stating what, who and when very clearly and emailed before everyone leaves. Our top tip is to capture actions on email as the meeting progresses. Not afterwards because each one is likely to be re-debated.
  • Agree on the date of the next meeting.

Action: Propose dates for the next 18 months and a suggested agenda.

6. Strategic Thinking is the Essential Skill

In the most recent IGD trading survey both suppliers and supermarkets ranked ‘strategic alignment’ and ‘long term planning’ as important now and even more important in the future. The supermarkets said that having these skills was what a supermarket would expect from a ‘best in class’ supplier. Strategic Thinking , as well as being one of those overly used terms and mystifying skills, has now become essential to joint business planning. So much so that job advertisements are asking for applicants to have joint business planning experience. Strategic thinking, strategic planning, and having strategic objectives are about being able to see the big picture, identify insights with high impact and make them happen. The skills of joint business planning are the same, as well as an effective use of some negotiation skills.

Bar graphs for Strategic Alignment and Long Term Planning for retailers and suppliers

The brave move would be to initiate a joint business plan with the supermarket and begin to implement this roadmap to category growth. Action: Read this post on strategic thinking and consider an executive coach to prepare you for your next JBP so that you are the best version of yourself when you negotiate, share your big-picture thoughts and discuss trust.

7. These Critical Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier

Initiating, or being invited to a Joint Business Plan meeting, is pivotal to every supplier because, of course, terms are negotiated and the outcome will have a high impact on the supplier’s annual performance, but also a Joint Business Plan meeting is an opportunity to demonstrate ‘best in class’. Best in class for category understanding, shopper understanding, supermarket understanding, possible solutions, and how to manage these plans to make them work.

For these reasons, the preparation for a must-win meeting must be to achieve the old adage of ‘sweat in training, no need to bleed in battle’. Role plays are an undervalued tool for preparing and for getting the heads-up on those things that could not be predicted and are yet to happen. When millions of pounds can be at stake for one meeting, it pays to be prepared, and ask the experts for help to be the very best version possible.

Action: Book a role play with a suitable colleague/s so that you can sweat in training, or contact us for help. See our Fyffes testimonial for how we supported them.

A Summary of the 7 Brave Moves 

Here is a summary of the 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket because a supplier that does, will be best in class:

  • Stating the blindingly obvious – It’s all about trust.
  • KISS is the route that succeeds most with joint business plans.
  • Naming the Big Project Outcomes is the Key to Success.
  • A Simple Dashboard Every 2 Weeks to Keep Things Moving.
  • Reviewing the Joint Business Plan Quarterly Together.
  • Strategic Thinking is the Essential Skill.
  • JBP Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier.

What is your top tip for writing a JBP? Please share your view by commenting at the end of this article.

Creating a JBP that Includes the Required Elements of the Groceries Code Adjudicator 

Only 1 in 2 Suppliers has a written supply agreement according to research by the Groceries Code Adjudicator (Slide 16). A written supply agreement is often a joint business plan. Therefore here is a checklist of often-forgotten items that should form part of the written supply agreement/JBP:

  • Payment terms
  • Marketing costs, e.g. artwork, packaging, consumer research, or hospitality
  • Payments for wastage

A Must Win Meeting Masterclass is only £750+vat for up to 12 people (£62.50 per person). Contact us to book.

Purple metal can with Must Win Meetings Masterclass on label and the MBM logo

Feel free to get in touch. Simply fill out the form below or email us at  [email protected] , and we will be happy to get back to you with further information.

Related Articles:

Share this Article:

joint business planning meaning

Category Management

There’s More!

Improve your Personal Development with Resources Designed for You

Woman pointing down with purple down arrows

Ultimate Guide

Related Articles

Watch Related Videos

View Infographics

Listen to Podcasts

Pack of MBM Coaching card on yellow background

Get your Pack of Coaching Cards from Amazon

Training Course

Browse the Shop

Further Resources

Forgetting Curve

Sticky Learning

Training Evaluation

Sign up to receive regular articles on learning and development.

You may also like:.

Many tools laid out on a blue surface

Category Management Tools – Identify Your Category Fair Share Gap

Hand selecting the green person icon cube on yellow background

Pen Portraits Bring Your Shopper to Life for the Whole Business

Smiling female Shop worker showing thumbs up

Know Your Shopper or Expect Your Sales to Die

logo

  • Who We Help
  • Supply Chain
  • Information Technology
  • Data & Business Analysts
  • How We Help
  • On-Shelf Availability
  • Promotion Execution & Analysis
  • Retail Replenishment
  • New Product Launch
  • Sales and Marketing Analytics
  • Retail Data Adaptors
  • Data Sources
  • Demand Signal Repository

Blog & News

  • ROI Use Cases
  • Case Studies
  • Client Success Stories
  • Our Clients
  • There are no suggestions because the search field is empty.

The Transformative Power of Data-driven Joint Business Planning

The Transformative Power of Data-driven Joint Business Planning

Share this post.

In today's fast-paced and highly competitive consumer packaged goods (CPG) and retail industries, CPG companies and retailers are continually seeking ways to gain a competitive advantage and increase sales, revenue, and profitability. Yet, these two parties don’t always work well together or together enough to achieve those goals and mutually sustainable success.

Most CPGs, regardless of size or category, engage in some form of joint business planning (JBP)—or what they might call “joint” business planning—with their retailer partners. But many such interactions are infrequent, with business plans being more one-sided in favor of the supplier, which doesn’t leverage JBP to its fullest. Instead of a win-win for both sides, the score often ends up being 1-0 or 0-0, with the retailer, more than likely, being on the losing end. Neither one of those scores is going to help a CPG’s efforts to score additional shelf space, introduce new products, or run new promotions with a retailer.

Today, with the myriad of challenges facing both industries—including inflation, supply chain stress, pricing pressures, and challenger brands—retailers are looking even more to their suppliers for compelling data stories that lead to meaningful insights, strategies, and recommendations that will help them keep shelves stocked, gain new customers, and move more product. At the same time, CPGs must satisfy their own business needs and create advantages and the means to predict and meet ever-changing consumer demand, better engage consumers, and drive category growth and market share.

Enter the need for TRUE joint business planning that should continuously be supported by precise and timely retail data, analytics, and insights.

Data-driven JBP has emerged as a powerful, game-changing strategy that brings together CPG manufacturers and retailers to collaboratively optimize their operations and meet consumer demand effectively. And two heads are better than one, but only if both are equally filled with the most accurate business intelligence derived from the highest quality data.

This blog post will delve into the evolution and significance of joint business planning, its fundamental components, and the best practices that contribute to its effectiveness. More importantly, it will explore how data-driven joint business planning drives shared CPG and retailer success.

What is Joint Business Planning and Why Is It Significant to CPGs?

business plan

JBP is mission critical for today’s CPGs and retailers who want to gain a strategic advantage in the marketplace. And those companies with a well-thought-out and clearly defined JBP process are better able to create win-win plans and execute them more effectively and efficiently by focusing on areas with the greatest return on investment.

Having a shared vision and proactive engagement enables CPG companies and retailers to transcend the conventional supplier-buyer relationship and, instead, develop a cohesive, long-term strategy based on reliable, foundational data that caters to the ever-evolving demands of consumers and the dynamic market landscape. When implemented properly, JBP can lead to increased sales, optimized trade promotions, successful new product launches , improved inventory management, and increased consumer satisfaction and brand loyalty.

And it’s important to keep in mind that JBP should not be viewed by CPGs as a suggestion, recommendation, or an obligatory task to be completed once a year with retail buyers. It should be an ongoing, symbiotic partnership and collaborative process that builds on the success and learnings of previous plans and that leverages shared data and insights to drive mutual profitable growth.

The Evolution of Joint Business Planning in CPG

Traditionally, CPGs and retailers operated mostly in silos, with limited communication and collaboration between them. A manufacturer’s sales rep would typically meet annually with the retailer’s buyer to discuss operating plans, which were more tactical in nature and usually developed unilaterally by the supplier—with minimal input from the retailer. Written mostly from the supplier’s viewpoint, these “joint” plans could often be viewed more as a one-sided mandate which subjugated the retailer’s own goals, strategies, and priorities. As a result, the supplier-retailer relationship could become strained and, at times, adversarial.

  The data that was used for reporting was frequently inaccurate, incomplete, and weeks or months old, thereby reducing any business plans to “guesstimates” at best.

Compounding these issues was the accessibility and quality of the data being used by CPGs to develop the strategic sales plans. Before CPGs had sophisticated software and tools like Retail Velocity’s VELOCITY ® cloud-based data collection, reporting, and analytics solution —which automatically collects, cleanses, and harmonizes large volumes of disparate item- and store-level data—salespeople spent an exorbitant amount of time and effort manually gathering, organizing, and trying to make sense of sales and inventory data.

Making matters worse, the data that was used for reporting was frequently inaccurate, incomplete, and weeks or months old, thereby reducing any business plans to “guesstimates” at best. This inability to possess complete, accurate data prevented CPGs from garnering the deep insights required to develop comprehensive plans that enabled them to fully reach their sales and financial goals. It also prevented salespeople from presenting retailers with fact-based insights and recommendations that would build trust and credibility and help retailers grow their business profitably.

One Size Does Not Fit All

Fast forward to today, and the advent and continued rapid growth of advanced analytics and AI-driven data technologies has transformed the industry's landscape, enabling data-driven joint business planning to take center stage for shared growth.

one size 500

Retailers’ expectations for their suppliers—and the type of relationship they want to have with them—have changed. As such, retail partners want their suppliers to provide deep, powerful insights on a regular basis that guide their growth strategies while ensuring both sides are aligned in their efforts to create profitable advantages. And since each retailer is different, with different goals, priorities, and needs, CPG companies can’t fall prey to having a one-size-fits-all business plan for all retailer partners.

Joint business planning is now embracing the true meaning of collaboration instead of slapping a false label of “joint planning” on business as usual.

Leveraging Data for Optimal Planning and execution

Too often, trust and lack of fact-based insights are the biggest obstacles to a retailer fully buying into a supplier’s business plans, let alone implementing them. So, the first step for a CPG in building a successful JBP is to obtain the most accurate and timely POS, inventory, and other critical data that can produce in-depth reporting, reliable analytics, and granular insights that allow salespeople to present extremely detailed, persuasive stories to their retailer partners.

If joint business planning is the engine that drives a brand’s success with a retailer, then high-quality retail data, especially at an item and store level, is the fuel that will make that engine run smoothly for many, many miles.

As a brand, depending on your size, revenue, or volume with a retailer, your JBP meetings may include anyone from a buyer all the way up to a C-suite individual; however, who you meet with doesn’t necessarily matter. What matters more is that no matter whom you meet with, you are prepared with data-supported sales, product, and category stories that show your retailer partners the best path to achieving their business goals.

Out With the Old. In With the New.

data sharing

What should not be lost in the collaborative process, though, is that data sharing should be a two-way street. Data transparency from both sides and total visibility into any and all supply and demand data are critical to ensuring optimal long-term joint business planning. When both parties are privy to the same data, it reduces the possibility of down-the-line “uh-ohs” and potential derailing of the joint plan or parts of the plan for either side.

By sharing comprehensive data during the planning process and by leveraging extracted performance data throughout the execution of the JBP, both parties can maintain product stock levels, accurately assess consumer demand, optimize promotions and retail execution, and identify trends in sales and product distribution. Without this level of detail provided in near real time, CPGs and retailers will find it quite difficult to react quickly and appropriately to any changes in consumer demand or market conditions—or external factors—and will find that even the best-laid business plan can go down the drain.

Healthy Data—It's Not Just for Breakfast.

CPGs must also keep in mind that high-quality data is not only used for developing plans, but it is also used for accurately measuring sales, marketing, and supply chain efforts and activity. The dialogue between each party needs to continue beyond initial negotiations and agreements. Regular meetings to review key performance indicators (KPIs) provide opportunities to correct mid-cycle issues and align on real-time results and solutions.

Without clearly defined and tracked performance metrics, the success of the JBP is uncertain. Both parties need to agree on what data sources are going to be reviewed, and expectations must be laid out internally and externally to establish what each side hopes to get out of the arrangement and what ROI will constitute success of the JBP.

With the capability to gather, consolidate, and leverage precise, granular demand and supply data and insights more quickly and easily, CPGs can confidently and effectively lead the JBP process

It is also important to have discussed and agreed upon the terms and investment in the JBP. Going into a project aware of the value that each business is adding to the other and being able to quantify the ROI is fundamental to a successful joint business plan.

With the capability to gather, consolidate, and leverage precise, granular demand and supply data and insights more quickly and easily, CPGs can confidently and effectively lead the JBP process with their retailer partners and take those meetings to another level. 

How To Make the CPG-Retailer Relationship Work

Joint business planning best practices revolve around fostering open communication, trust, and a shared vision for success. A joint business plan could be what makes or breaks the brand’s overall success at the retailer. Here’s how to make it work.

Internal Alignment Before entering into a joint business plan with a retailer, all relevant parties within a CPG should agree on the general approach to, and the benefits, of the partnership. Recognizing the advantages and understanding the bigger picture is key. When sales, marketing, supply chain, finance teams, and others are in alignment within the company, it will be much easier and faster to align with retailers and their personnel on the shared vision of the JBP.

Shared Vision and Objectives Establish a common understanding of desired outcomes and long-term goals that all parties aspire to achieve through the JBP process.

Trust and Transparency Foster an environment of trust and openness, where all parties involved can openly share information, insights, and challenges. This includes sharing daily POS and inventory data, market insights, sales forecasts, demand plans, and other relevant information to facilitate collaboration.

Data-Driven Decision Making Base decisions on accurate and reliable data to ensure the planning process is grounded in objective analysis rather than subjective opinions or assumptions. This includes utilizing market research, harmonized POS data , consumer insights, and other relevant metrics.

Joint Goal Setting Collaboratively set specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with the shared vision. These goals should be agreed upon by all parties involved and reflect the collective interests and objectives.

Collaborative Analysis Conduct a thorough analysis of the market landscape, customer and consumer needs, competitive landscape, and internal capabilities of each business. This analysis helps identify areas of synergy, opportunities for growth, potential challenges, and risks.

Resource Allocation and Investment Planning Determine the required resources, including financial investments, staffing, marketing support, and operational capabilities, to achieve the joint business goals. This involves jointly deciding how resources will be allocated and identifying potential areas for cost-sharing or resource pooling.

Joint Strategies and Tactics Develop joint strategies and action plans to achieve the agreed-upon goals. This includes defining the marketing, sales, operational, and promotional activities that will be undertaken collectively to drive growth and success.

Continuous Performance Monitoring Establish mechanisms to monitor the progress and performance of the joint business plan. This involves tracking KPIs, conducting regular reviews, and making adjustments as necessary to stay on track and adapt to changing market conditions.

Conflict Resolution Mechanisms Anticipate potential conflicts or disagreements and establish a process for resolving them in a collaborative manner. This may involve having clear escalation paths, dispute resolution mechanisms, and open lines of communication to address any issues that may arise during the planning and implementation stages.

Review and Evaluation: Conduct periodic reviews and evaluations of the joint business planning process to assess its effectiveness and identify areas for improvement. This ensures that the collaboration remains dynamic, responsive, and aligned with evolving business needs and market dynamics.

When executed properly with a truly collaborative approach, joint business planning can be transformative for the supplier-retailer relationship but also for the retailer-shopper and brand-consumer relationships. Although both retailers and CPGs want to grow their businesses profitably and need to focus on total alignment to ensure that happens, neither party can lose site of the fact that providing a better commerce experience for shoppers is what will truly and ultimately help them achieve their goals.

At the core of that improved shopper experience lies extremely accurate retail data and actionable, data-driven insights. And the value of insights-sharing between retailers and suppliers cannot—and should not— be understated. Without using daily item- and store-level data as the foundation of those insights and critical business decisions, both CPGs and retailers will be hard pressed to create the competitive advantages needed to consistently meet consumer demand and realize greater, mutual success long term.

As the consumer goods industry continues to evolve, embracing data-driven joint business planning specific to each retailer will undoubtedly be a key differentiator for CPG companies seeking to thrive in the dynamic market landscape.

To learn more about how Retail Velocity can help you collect and leverage accurate retail sales and inventory data for successful joint business planning and sustained growth, contact us . 

Want to keep up with the latest updates from Retail Velocity? Click the button below ⇓ and subscribe to our blog. 

You May Also Like

How CPGs Can Use Daily Retail Data to Increase Holiday Sales

How CPGs Can Use Daily Retail Data to Increase Holiday Sales

Using POS Data and Retail Analytics to Win at the Shelf

Using Point-of-Sale Data and Retail Analytics to Win at the Shelf

The Ripple Effect of Poor Retail Data Insights | Retail Velocity

The Ripple Effect of Poor Retail Data Insights on CPG Companies

What is Data Cleansing? | Retail Velocity

What is Data Cleansing?

joint business planning meaning

We help you bridge the gap

The Importance Of Joint Business Planning

  • verdeassociates
  • Thought Leadership
  • Tags: accelerating growth , B2B , commercial processes , cooperation , joint business planning , process improvement

At Verde, we understand the impact of successful collaboration between B2B partners on business growth.

The key to success is creating a joint vision that is grounded in marketplace realities, coupled with flawless execution.  To solidify this success and identify course-correction options, partners should develop progress measurement tools and processes.  We want to share with you results of work to benchmark and improve Joint Business Planning (JBP) for the Electrical industry. (Spoiler: the process is not working as well as it should, but we know how to fix it). We will be rolling out new process between a major manufacturer and distributor later this fall.  Stay tuned as we will share improvement results with you!

To find the full version of the article please visit the Electrical Trends website by clicking  here.

Share this Post

  •    

Comments are closed.

joint business planning meaning

Joint Business Plan: what's the point? .

It’s around this time that manufacturers and retailers agree joint business plans, or JBPs, for the coming year. But JBPs can be a very mixed bag, so if you’re going to do one, it’s essential you do it in the right way and for the right reasons. JBPs come in just three flavours, so which one is right for each of your major relationships?

The Sales Plan:

It’s the most common form of JBP but, in reality, it’s nothing more than a 12-month promotion calendar. Periods of trading, interspersed with launches and deals. It’s a low-value exercise. At best it helps you coordinate activity, stock, and investment across the year, but it’s never going to transform your businesses, so don’t waste much time on it.

The Battle Plan:

This flavour of JBP is really a competitive negotiating tool, to be used to gain specific commitments and concessions. A retailer may be offered extra promotions for a cost price increase. A manufacturer might be promised volume growth in return for more investment. The numbers in the plan are only there to support the negotiation, and to be used as a beating stick, for one side or the other, during the year. It’s a hard-nosed deal for a 12-month period, so it needs time, focus and planning.

The Strategic Plan:

The “strategic” JBP is very different. It requires an open, collaborative relationship. It starts with an ambitious vision of where the relationship could be in the future, where it could add genuine value for customers, and where it could create something new, different and worthwhile. The strategy is as much about joint initiatives as it is about buying and selling, and it may outline a plan that will run for the next several years.

BOTTOM LINE:  you can’t collaborate with someone intent on competing with you. But for those relationships where you can collaborate, the rewards from a strategic JBP can be huge. Choose the right approach, set appropriate objectives, and adopt a style to maximise the opportunity. Don’t waste your time going through the motions – there’s really no point.

More Articles .

  • How to build an innovation culture
  • Unlocking extraordinary potential
  • A parable of leading change
  • The strategic solution to price pressure
  • The foundation of everything
  • Preparing to thrive in testing times
  • Why bother with strategy
  • The thought of work
  • Building an innovation ecosystem
  • Making progress out of conflict

Article Categories .

  • Business Strategy (47)
  • Getting Change Delivered (24)
  • Leadership in Action (52)
  • Innovation and Growth (42)
  • Winning in Your Market (37)
  • Turning Performance Around (21)
  • Sales and Profitability (66)

Knowledge and Science Bulletin Board System

Exploring the World of Knowledge and Understanding

Why Joint Business Planning is the Key to Success for McKinsey and Other Companies

By knbbs-sharer.

joint business planning meaning

The world of business is an ever-changing landscape, and businesses need to be able to adapt and evolve to stay competitive. One of the ways companies can stay ahead of the pack is through joint business planning. McKinsey and other companies have found that joint business planning is an excellent way to improve their business outcomes.

What is Joint Business Planning?

Joint business planning (JBP) is a way for two or more companies to work together to achieve shared business goals. It’s a collaborative process that involves identifying strengths and weaknesses, opportunities and threats, and jointly developing a plan to achieve success.

JBP is typically used when two or more companies have a vested interest in achieving a shared goal, such as launching a new product or service. By working together, companies can leverage each other’s strengths and resources to achieve success.

The Benefits of Joint Business Planning

There are many benefits to joint business planning. Some of the main benefits include:

1. Improved communication: JBP requires regular communication between both parties. This helps to build strong relationships and ensures that everyone is on the same page.

2. Shared responsibility: Both parties share the responsibility of achieving the shared goal. This creates a sense of shared ownership and accountability.

3. Improved decision-making: Joint business planning involves a collaborative approach to decision-making. This helps to ensure that decisions are made based on a range of perspectives and considerations.

4. Leveraging of resources: By working together, both parties can leverage their respective resources to achieve success. This can include manpower, expertise, and finances.

How McKinsey Uses Joint Business Planning

McKinsey is one of the world’s leading consulting firms, and JBP is a critical part of their success. McKinsey works with clients to develop a JBP that aligns with their business goals and objectives.

McKinsey’s JBP process involves:

1. Defining goals and objectives: McKinsey works with clients to identify their business goals and objectives.

2. Identifying key performance indicators (KPIs): McKinsey works with clients to identify KPIs that will help to measure the success of the joint business plan.

3. Developing a roadmap: McKinsey and the client work together to develop a roadmap for achieving the shared goals and objectives.

4. Regular check-ins and adjustments: McKinsey and the client regularly check in on progress and make adjustments as necessary.

By using JBP, McKinsey is able to deliver exceptional results to its clients.

Joint business planning is a powerful tool that can help companies achieve their business goals and objectives. With improved communication, shared responsibility, and leveraging of resources, companies can achieve success that they may not have been able to achieve on their own.

McKinsey and other companies have shown that JBP is a valuable approach that can be used to drive success. By working together, companies can achieve more than they ever could on their own.

(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)

Share this:

Discovery new post:.

  • Innovation: The Key to Business Success
  • Why the 7 Principles of Business Ethics are Key to Long-Term Success
  • Exploring Real-World Examples of Business Intelligence: From Netflix to Coca-Cola
  • 5 Key Elements of Success for Your Business Management Company

Hi, I'm Happy Sharer and I love sharing interesting and useful knowledge with others. I have a passion for learning and enjoy explaining complex concepts in a simple way.

Related Post

2023 food business trends: from sustainability to automation, future of the fashion business: top 5 trends to watch out for in 2023, the top food business trends that are taking the industry by storm, leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

Explore the Colors and Traditions of Global Cultural Festivals

5 simple strategies for learning english faster and more effectively, 5 common great dane health issues you need to know about.

The Partnering Group

  • Consumer Products
  • Food Service
  • Private Equity
  • Consumer Electronics
  • Organization Transformation
  • Learning & Development
  • Functional Training Programs
  • Revenue Growth Management
  • Digital Commerce
  • Category Management
  • Buying and Merchandising
  • Brand Strategy & Execution
  • Marketing Performance
  • Data, Tech & AI
  • Insights, Research & Influence
  • Supply Chain
  • Manufacturing
  • Store Operations
  • Join Our Team

Joint Business Planning

joint business planning meaning

Course Description

This approach to Joint Business Planning (JBP) is rooted in an alignment process between the customer and seller (Manufacturer, Broker, Suppler, etc) that produces breakthrough business plans. The objective of JBP is to drive alignment of goals, strategies and action plans between the two collaborative partners.

Learning Objectives

  • Customer Profile Development
  • Situation Assessment & Opportunity Identification
  • Alignment Process focused on Priorities
  • Joint Business Plan Session including Scorecards and Strategies
  • Joint Action Plan Development and Work Teams
  • Instructor led
  • Experiential

Target Audience

Any person from a Manufacturer, Retailer, Distributor or Agency, within the Consumer Product Goods industry, who seeks a more advanced understanding of Joint Business Planning. Typical participants include roles such as Category Managers, Buyers, Merchandisers, Customer Team leaders, Account Executives, Marketing Managers, Pricing & Promotion Managers, Finance Managers, Business Managers, Operations Managers, Retail or Sales Strategy Managers, Trade Marketers, Supply Chain Managers, Category Analysts, etc.

Supported Behaviors

Strategic Business Planning Analysis & Insights Trading Partner Development

Leave a Reply Cancel reply

  • Share full article

Advertisement

Supported by

Sony and Apollo’s Plan for Paramount: Break It Up

CBS and other well-known properties would be sold if Sony and Apollo were able to buy Paramount. But the new owners would keep the movie studio.

An elevated view of studio buildings and a white water tower bearing the Paramount mountain logo.

By Benjamin Mullin and Lauren Hirsch

Shari Redstone helped build Paramount Global into a media empire, but if Sony Pictures Entertainment and the private-equity giant Apollo Global Management succeed in acquiring it, they plan to break it all up, according to three people familiar with the matter.

The plan would include auctioning off CBS, cable channels like MTV and the Paramount Plus streaming service, said the people, who asked not to be identified sharing private details. Paramount Pictures — home to blockbusters like “The Godfather,” “Top Gun” and the “Mission: Impossible” franchise — would be combined with Sony’s business.

Sony and Apollo, which made a nonbinding expression of interest in acquiring Paramount for $26 billion last week, are also likely to keep Paramount’s library of films and TV shows and the rights to well-known characters, including the Teenage Mutant Ninja Turtles and SpongeBob SquarePants. They have not yet outlined this plan to Paramount or its advisers.

A breakup of Paramount would represent a major changing of the guard in the entertainment industry. CBS and Paramount have been controlled by the Redstone family for decades, since the media mogul Sumner Redstone assembled the conglomerate in a series of audacious deals. His daughter, Ms. Redstone, championed a 2019 deal to reunite it, and she remains Paramount’s controlling shareholder.

Sony and Apollo are now engaging with Paramount’s financial advisers on next steps in their proposal, the people said. The two companies have not yet signed formal nondisclosure agreements or begun due diligence reviews, a process that could take weeks.

Though it’s still early, the two bidders have already begun to envision how a deal for Paramount could unfold. The two would likely operate the company as a joint venture controlled by Sony, with a minority stake owned by Apollo, the people said. Sony would look to combine the marketing and distribution functions of the Paramount movie studio with its own operations, and divest the rest of the properties.

Over time, Apollo could sell its stake in the joint venture back to Sony or to another buyer. It’s not yet clear just how large a stake Apollo would hold in the business, though the company plans to invest billions in the deal, one person said.

A breakup of Paramount is not a preferred outcome for Ms. Redstone, who would prefer the company to pass on to another buyer intact, a person familiar with her thinking said. But it wouldn’t necessarily be a dealbreaker if the offer was compelling, the person said.

There are other suitors. Skydance, a media company founded by the tech scion David Ellison, has been in discussions with Paramount for months about a potential deal. Exclusive negotiations between Skydance and Paramount lapsed last week, shortly after Sony and Apollo put in their expression of interest. But Skydance remains interested.

Sony and Paramount have different approaches to the entertainment business, and a deal would probably result in a U-turn for Paramount. Unlike Paramount, which streams its content on Paramount+, Sony licenses its movies and TV shows to companies like Netflix and Disney. Sony would probably not change that approach in a deal with Paramount and would most likely look to combine Paramount+ with a rival service, such as Comcast’s Peacock or Warner Bros. Discovery’s Max.

Sony has long pursued Paramount’s movie studio. Several years ago, Sony executives reached out to Paramount to see if the company would be willing to sell Paramount Pictures or merge it into a joint venture, but Paramount signaled it was interested only in a deal for the whole company. So when Apollo made a bid for all of Paramount this year, Sony decided to team up.

Any deal by Sony would face regulatory hurdles. Regulations restrict foreign owners from holding licenses for U.S. broadcast stations, which could prevent Sony — which is owned by the Japanese-based Sony Group — from owning CBS-affiliated TV stations. But they could divest the stations immediately, or have Apollo apply for the license. They are also considering other options for the stations.

The deal would also most likely require clearance from the Committee on Foreign Investment in the United States, the panel in Washington that scrutinizes acquisitions by foreign owners.

Sony and Apollo believe that when they decide to sell the Paramount assets , there could be many logical buyers, the three sources said. Warner Bros. Discovery, which does not own a broadcast network, could be a suitor for CBS. TV station groups like Nexstar and Tegna could be logical buyers for CBS’s owned and operated TV stations.

The hardest asset to sell would most likely be Paramount’s cable networks, like MTV and Nickelodeon, but those could be sold to a TV programmer looking for greater scale in negotiations with cable companies like Charter and Comcast.

Benjamin Mullin reports on the major companies behind news and entertainment. Contact Ben securely on Signal at +1 530-961-3223 or email at [email protected] . More about Benjamin Mullin

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Cómo pueden prosperar las "empresas conjuntas" en tiempos de crisis

Las joint ventures podrían ser más relevantes que las fusiones y adquisiciones para la estrategia de las empresas.

Las joint ventures podrían ser más relevantes que las fusiones y adquisiciones para la estrategia de las empresas. Image:  Product School/Unsplash

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Rahul Khubchandani

Ed gore-randall.

joint business planning meaning

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explora y monitorea cómo .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Geopolitics afecta a las economías, las industrias y los problemas globales

A hand holding a looking glass by a lake

.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Involúcrate con nuestra plataforma digital de crowdsourcing para lograr un impacto a escala

Mantente al día:, horizon scan: markus herrmann.

  • Las joint ventures, o empresas conjuntas en español, son cada vez más relevantes, especialmente en tiempos de agitación geopolítica e incertidumbre económica - y para algunos, más aún que la tradicional actividad de fusiones y adquisiciones para la estrategia de las empresas, según una encuesta del Boston Consulting Group.
  • La mayoría de las empresas siguen comprometidas con sus joint ventures existentes, incluso cuando se enfrentan a retos geopolíticos; sin embargo, muchas creen que no están totalmente preparadas para los cambios globales.
  • Las empresas están cambiando sus estrategias de joint ventures, a veces desplazando su enfoque geográfico, mientras que muchas se plantean incorporar protecciones "no jurídicas" a las nuevas asociaciones.

En los últimos años, los riesgos para los negocios internacionales se han multiplicado. Las guerras, el cambio climático y las pandemias, entre otras crisis globales, han convertido al mundo en un lugar más complicado que en casi cualquier otro momento de la historia reciente. Muchos de los riesgos geopolíticos que surgen afectan a las empresas que participan en joint ventures transfronterizas.

Las joint ventures transfronterizas son entidades jurídicas de propiedad conjunta que permiten a las empresas penetrar más eficazmente en nuevos mercados, combinando los conocimientos locales con recursos y capacidades adicionales.

En los últimos 15 años, la actividad de las joint ventures ha demostrado una gran resiliencia a las convulsiones políticas y las recesiones económicas. En julio de 2023, Boston Consulting Group (BCG) llevó a cabo una encuesta en la que se preguntaba cómo están afrontando las joint venture transfronterizas la situación actual del mundo.

¿Has leído?

Pensar a largo plazo: cómo aplicar la prospectiva estratégica para afrontar los retos globales, cómo construir la resiliencia de los negocios en una era de riesgos y turbulencias, estos son los mayores riesgos globales a los que nos enfrentamos en 2024 - y en el futuro, futuro brillante para las joint ventures.

En una encuesta realizada a 159 ejecutivos de empresas con joint ventures en todo el mundo, la mayoría (58%) creía que el actual panorama geopolítico favorece el establecimiento de joint ventures en lugar de fusiones y adquisiciones. Un número similar (60%) afirmó que las joint ventures son un vehículo más resiliente para hacer frente a las crisis económicas. Los encuestados de seis sectores se mostraron especialmente optimistas respecto a las joint ventures:

  • Metales y minería.
  • Automoción y movilidad.
  • Bienes de consumo.
  • Telecomunicaciones.
  • Medios de comunicación y tecnología.
  • Aeroespacial y defensa.

Los encuestados del sector aeroespacial y de defensa, por ejemplo, señalaron la naturaleza estratégica de su industria como una razón importante para formar joint ventures.

Las joint ventures son más resilientes que las fusiones y adquisiciones en el actual panorama geopolítico.

Dos tercios de todos los participantes afirmaron que siguen comprometidos con su actual estrategia de joint ventures pese a los desafíos. Sin embargo, las tensiones mundiales han llevado a un número significativo (33%) a plantearse cambios como centrarse en joint ventures en regiones diferentes, renegociar las condiciones o abandonar determinadas asociaciones.

Las empresas norteamericanas y europeas son las más propensas a considerar que están expuestas a riesgos geopolíticos, ya que una mayor proporción de sus joint ventures (alrededor del 70% en nuestra muestra) incluyen a socios extranjeros. En comparación, las joint ventures transfronterizas sólo representan alrededor del 30% de todas las actividades de joint ventures chinas y alrededor del 50% en la India y el resto de la región Asia-Pacífico.

Desplazándose por el mapa

La actividad futura de las joint ventures se centrará probablemente en regiones diferentes a las del pasado. Por ejemplo, las empresas de Norteamérica y Europa pretenden tener menos actividades en China. Esta reorientación puede reflejar varios factores más allá de la geopolítica, como el menor crecimiento del producto interior bruto y el hecho de que China ya no exige a las empresas extranjeras que creen joint ventures para operar en determinados sectores de su economía.

Al mismo tiempo, las empresas norteamericanas y europeas también pueden estar buscando asociaciones más cerca de casa debido a factores de seguridad nacional, energía verde e incentivos de política industrial.

Muchos países de Asia-Pacífico, excluyendo China e India, también están planeando aumentar las joint ventures en Norteamérica, Europa, Oriente Medio y su propia región, mientras que las empresas latinoamericanas contemplan una mayor actividad en Norteamérica, Europa y la propia Latinoamérica. Es probable que estos planes se deban tanto a cambios geopolíticos como a oportunidades de crecimiento.

Las empresas se plantean crear joint ventures en nuevos mercados, incluidas sus regiones de origen.

Estrategia de refuerzo

Mientras los ejecutivos contemplan las oportunidades y los riesgos de un mundo en rápida evolución, sólo el 23% afirma estar bien preparado para gestionar sus joint ventures existentes y ejecutar sus ambiciones futuras en medio de mayores riesgos geopolíticos. La mayoría (70%) afirma estar sólo algo preparado, mientras que el 8% dice no sentirse preparado en absoluto.

La mejor manera de maximizar el éxito futuro es con una estrategia que incorpore la resiliencia. Todos los futuros acuerdos de joint ventures transfronterizas deben contener algunas salvaguardias e incluso las joint ventures existentes pueden establecer nuevos mecanismos para proteger a todos los socios. En concreto, recomendamos las cinco prácticas siguientes para ayudar a los socios de joint ventures transfronterizas a tener éxito en el paradigma internacional actual.

Prácticas clave para el éxito de joint ventures transfronterizas.

1. Poner a prueba las estrategias de las joint ventures y los casos empresariales frente a posibles cambios geopolíticos

Tanto si su empresa está considerando las opciones en una sociedad existente como examinando la viabilidad de una nueva empresa, la modelización de escenarios para un futuro más volátil debería ser una parte crítica y continua del proceso de toma de decisiones.

2. Reconocer que las joint ventures transfronterizas difieren según las regiones

Los socios deben estar en sintonía con el marco social, político, jurídico y financiero de cada país. Los contrastes culturales en cualquier acuerdo de joint venture pueden tener un impacto duradero, que comienza en las primeras fases de las negociaciones y se prolonga a lo largo de toda la vida de la asociación.

3. Crear una estructura de gobernanza sólida con protecciones no jurídicas y vías de escalada

Los mecanismos de protección que van más allá del ámbito jurídico son una de las salvaguardias más valiosas en una joint venture transfronteriza. Entre los ejecutivos encuestados, el 32% afirma que estas protecciones han adquirido mayor importancia en la última década y el 44% las considera al menos tan importantes como las protecciones jurídicas, si no más.

Los mecanismos no jurídicos de protección de las joint ventures han cobrado importancia en la última década.

4. Establecer relaciones personales profundas en la jurisdicción local

Los socios extranjeros también deben establecer relaciones directas con otros clientes y proveedores, además de con organismos gubernamentales, como respaldo en caso de que sus relaciones con sus homólogos locales se tuerzan.

5. Asegurarse de que cada parte tiene un plan de salida claro y especificado en el acuerdo

El plan de salida se ha vuelto más importante que nunca para garantizar que ningún socio carezca de una opción viable o se vea obligado a adoptar una salida costosa. Si su empresa ya forma parte de una sociedad y su plan de salida le parece insuficiente en un mundo más arriesgado, puede aprovechar cualquier oportunidad que surja para renegociar el acuerdo original de la joint venture. Por ejemplo, si su empresa y su socia quieren expandirse a un nuevo mercado, puede ser una buena ocasión para cambiar ciertos términos y redactar un mecanismo de salida más sólido.

Una joint venture sólidamente estructurada puede soportar la mayoría de las tensiones, pero todos los socios deben asegurarse de que están adecuadamente protegidos y reconocer que el manual de reglas del pasado puede tener que adaptarse al incierto mundo del futuro.

No te pierdas ninguna actualización sobre este tema

Crea una cuenta gratuita y accede a tu colección personalizada de contenidos con nuestras últimas publicaciones y análisis.

Licencia y republicación

Los artículos del Foro Económico Mundial pueden volver a publicarse de acuerdo con la Licencia Pública Internacional Creative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0, y de acuerdo con nuestras condiciones de uso.

Las opiniones expresadas en este artículo son las del autor y no del Foro Económico Mundial.

La Agenda .chakra .wef-n7bacu{margin-top:16px;margin-bottom:16px;line-height:1.388;font-weight:400;} Semanal

Una actualización semanal de los temas más importantes de la agenda global

.chakra .wef-1dtnjt5{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;} Más sobre Business .chakra .wef-17xejub{-webkit-flex:1;-ms-flex:1;flex:1;justify-self:stretch;-webkit-align-self:stretch;-ms-flex-item-align:stretch;align-self:stretch;} .chakra .wef-nr1rr4{display:-webkit-inline-box;display:-webkit-inline-flex;display:-ms-inline-flexbox;display:inline-flex;white-space:normal;vertical-align:middle;text-transform:uppercase;font-size:0.75rem;border-radius:0.25rem;font-weight:700;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;line-height:1.2;-webkit-letter-spacing:1.25px;-moz-letter-spacing:1.25px;-ms-letter-spacing:1.25px;letter-spacing:1.25px;background:none;padding:0px;color:#B3B3B3;-webkit-box-decoration-break:clone;box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width:37.5rem){.chakra .wef-nr1rr4{font-size:0.875rem;}}@media screen and (min-width:56.5rem){.chakra .wef-nr1rr4{font-size:1rem;}} Ver todo

joint business planning meaning

Estas deberían ser las prioridades para las empresas en 2024, según los líderes

Victoria Masterson

22 de abril de 2024

joint business planning meaning

The State of Social Enterprise: A Review of Global Data 2013–2023

joint business planning meaning

3 innovadores de la economía social que impulsan el cambio en Brasil

Eliane Trindade

8 de abril de 2024

joint business planning meaning

Cómo la autoidentificación de la discapacidad puede transformar las empresas y beneficiar a todos

Katy Talikowska

2 de abril de 2024

joint business planning meaning

Por qué debemos pensar localmente al planificar globalmente con IA

Jane Livesey

6 de marzo de 2024

joint business planning meaning

Por qué las empresas deben unirse a la economía circular para lograr un éxito sostenible

Henrik Hvid Jensen

7 de febrero de 2024

Trillium Garden on the Common

Photo of Trillium Garden on the Common - Boston, MA, US. Boston Common IPA

Location & Hours

Suggest an edit

Map

139 Tremont St

Boston, MA 02111

You Might Also Consider

Legal Sea Foods - Downtown Crossing

Legal Sea Foods - Downtown Crossing

0.1 miles away from Trillium Garden on the Common

Jenn S. said "I didn't realize this place even existed. One day when I walked behind the movie theatre I was confused that it just popped up out of no where! They were really slow when we stopped by for dinner so we decided to sit at the bar…" read more

in Bars, Seafood, Sandwiches

City Works - Watertown

City Works - Watertown

4.8 miles away from Trillium Garden on the Common

Barbara A. said "When you get a 70-degree day in November, you kind of wanna spend your time outside. I thought this would be the perfect time to see what this place was all about. On this lovely day, we were seated outside on the side of the road…" read more

in American, Sports Bars

Amenities and More

Ask the community.

Ask a question

Yelp users haven’t asked any questions yet about Trillium Garden on the Common .

Recommended Reviews

Photo of Username

  • 1 star rating Not good
  • 2 star rating Could’ve been better
  • 3 star rating OK
  • 4 star rating Good
  • 5 star rating Great

Select your rating

Overall rating

Photo of Daniel C.

The perfect entertainment/food and drink consumption/outdoor matrix in the common. Beer to order: Fort Point pale ale, 6.6% abv, no bitterness and a touch of tropical flavor Tacos: Carne asada is the best, followed closely by carnitas. Vegan chorizo average. Chips and guacamole solid. Music: on a recent Sunday evening, Chilean folk/electronic duo composed of acoustic guitarist and MacAir magician sitting on a box drum. Pretty interesting and very pleasant.

Entertainment

Entertainment

joint business planning meaning

The perfect outdoor entertainment/food and drink consumption matrix in the common. (Dedicated portapotties included). Beer to order: Fort Point pale ale, 6.6% abv, no bitterness and a touch of tropical flavor. 10 other options available. Tacos: Carne asada is the best, followed closely by carnitas. Vegan chorizo average. Chips and guacamole solid. Music: on a recent Sunday evening, Chilean folk/electronic duo composed of acoustic guitarist and MacAir magician sitting on a box drum. Pretty interesting and very pleasant. A very very hard place to leave.

Photo of Van V.

Nice looking wood structure on edge of Boston Common. We were biking around Boston on a gorgeous June afternoon. We had two of their amazing IPAs, one super light and refreshing with Kiwi in the name. The other Fens. A nice taco truck was there and we enjoyed five petite tacos as a late lunch. The name of the truck was Taqueria El Barrio. We thought the corn tortillas and sauces were good, including their chili crisp with soy and ginger plus peppers. Pork was better than steak and chicken, we thought. The ID checker had us put our bikes near him and he kept an eye on them. Thank you Trillium.

joint business planning meaning

This is a great example of bringing the beer to the people - right in the middle of the business district near the Long Wharf and tourist boat launches for whale watching etc. They brought their fantastic beer offerings to this popup like location which is great for happy hour or on the way to dinner or on the way home. Rotating selection of their great beers. Get here

joint business planning meaning

See all photos from Dan M. for Trillium Garden on the Common

Photo of Joe P.

This terrific little Beer Garden on Boston Common is a great place to stop for a couple of craft brews while seeing the sights in Beantown. Dropping in on a recent afternoon, I enjoyed Trillium's delicious Fort Point Pale Ale and their hoppy Fens IPA, while my wife sipped a glass of wine. There was also a Taco Truck on site, serving tasty nachos and other grub, and a small stage for music. Trillium is one of Boston's best craft breweries, and this cool new location on the Common provides a fantastic way to try their wonderful beers in a fabulous outdoor setting. Just grab a table or a hightop, sit back, and enjoy watching the crowds in America's oldest city park. Definitely worth a visit!

Photo of Brewster M.

Hey, man! So we're cruisin' through the common, searching for some righteous brews, right? And guess what? We stumble upon this joint. The dude at the "door" was like the definition of cool, man. We're chattin' it up, shootin' the breeze, you know, before we make our way to the bar. And holy smoke, the beers at this place were mind-blowing! They were out of this world, man! It's like they brewed 'em with magic or somethin'. We're sippin' and goin', "Whoa, this is some epic quality stuff!" We're gettin' all excited, thinking, "Man, we gotta hit the main brewery next!" I mean, imagine how rad it's gonna be, dude! More of these killer beers, vibes like no other, and brewmasters who probably dance while they're makin' magic potions. We're already planning our next adventure, 'cause this place set the bar high, my friend. So yeah, we stumbled upon this gem in the common, and it was like findin' a pot of gold, but instead of gold, it was all about the brews. The dude at the "door" was cool, the beers were off the charts, and now we're just counting the seconds 'til we hit the main brewery. Life is good, my amigo. Life is real good.

3 other reviews that are not currently recommended

Pink Taco Boston

Pink Taco Boston

0.9 miles away from Trillium Garden on the Common

Aarika D. said "I'm a little late on writing this review. Wow! I'm surprised with all the negative reviews. My friends made a reservation and surprised me for my birthday. We had an amazing time on January 5, 2020. They were there earlier and I got…" read more

in Mexican, Tacos, Breakfast & Brunch

The Elephant Walk

The Elephant Walk

Stephen M. said "I thought no one knew about the great food at The Elephant Walk because the two times that I went for brunch, the place was a ghost town upon arrival. I actually just realized now that both of those times I arrived before they were…" read more

in Cambodian, Cocktail Bars, French

Collections Including Trillium Garden on the Common

Boston

By Emily L.

Boston

By Tammy L.

Boston

By Ashley V.

People Also Viewed

Samuel Adams Tap Room on Yelp

Samuel Adams Tap Room

Cisco Seaport on Yelp

Cisco Seaport

Boston Seasons on Yelp

Boston Seasons

Bukowski Tavern on Yelp

Bukowski Tavern

Night Shift Brewing Owl’s Nest Esplanade on Yelp

Night Shift Brewing Owl’s Nest Esplanade

Lord Hobo Seaport on Yelp

Lord Hobo Seaport

The Pine Bar on Yelp

The Pine Bar

Distraction and Democracy Beer Garden on Yelp

Distraction and Democracy Beer Garden

Corner Tavern on Yelp

Corner Tavern

Trillium Garden On The Greenway on Yelp

Trillium Garden On The Greenway

Best of Boston

Things to do in Boston

Browse Nearby

Cocktail Bars

Things to Do

Other Beer Gardens Nearby

Find more Beer Gardens near Trillium Garden on the Common

IMAGES

  1. What is Joint Business Planning (JBP)?

    joint business planning meaning

  2. Joint business plan: Definition and tips

    joint business planning meaning

  3. What is Joint Business Planning (JBP)?

    joint business planning meaning

  4. 3 Stages For Effective Joint Business Plan

    joint business planning meaning

  5. Joint Business Planning PowerPoint Presentation Slides

    joint business planning meaning

  6. What Is a Joint Business Plan (JBP)? Benefits & Best Practices

    joint business planning meaning

VIDEO

  1. Woodworking SECRETS Revealed: Are Jointers & Planers Different?

  2. A Joint Planning & Development Subcommittee/Town Council Meeting

  3. Retail Pricing Volatility: How CPGs And Retailers Can Adapt To Inflation And Promotion Shifts

  4. Advantages of Joint Stock Companies (Tamil)

  5. A Joint Planning & Development Subcommittee/Town Council Meeting

  6. Meaning of Joint Hindu Family Business ✔

COMMENTS

  1. What Is a Joint Business Plan (JBP)? Benefits & Best Practices

    A joint business plan (JBP) is the collaborative process of planning between a retailer and a supplier in which both companies agree on short-term and long-term objectives, financial goals, growth, and shared business initiatives for profitability. Joint business planning focuses on agreeing on common objectives and aligning on a single goal or ...

  2. A Guide to Joint Business Planning Best Practices

    Joint business planning can significantly impact consumer sales by optimizing distribution channels, expanding market reach, and aligning sales strategies. ... A clear definition of roles and responsibilities, the establishment of conflict resolution protocols within the joint business plan, and a focus on shared objectives contribute to ...

  3. What Is Joint Business Planning?

    A Joint Business Plan can only be successful if it truly brings benefit to both the retailers and CPG companies; without this, joint commitment can't be assured. This demands the creation of an environment where retailers and CPG companies can offer total visibility into their data, thereby enabling creation of target audiences and consumer ...

  4. What Is a Joint Business Plan (JBP)?

    What is JBP in marketing? JBP means Joint Business Planning.It's like shared business planning, JBP is building winning relationships that benefit both suppliers as well as sellers and improve the good experience for consumers through clear insights.. Basically, JBP is an alignment process between the goods suppliers and sellers that produce breakthrough business plans.

  5. Joint Business Plan (JBP): Benefits, Best Practices & Objectives

    With a joint venture business plan in place, both companies can align their messaging, target audience, and promotional activities for maximum impact. 2. Enhanced Communication and Coordination. Another significant benefit of a joint business plan is the improvement in communication and coordination among partners.

  6. Taking supplier collaboration to the next level

    Joint business planning is a collaborative planning process in which the company and its supplier align on short- and long-term business objectives, agree on mutual targets, and jointly develop plans to achieve set objectives (exhibit). It brings a formal approach to collaboration with suppliers and helps to engage stakeholders from different ...

  7. Joint business plan: Definition and tips

    A joint business plan defines the state of the companies involved, the purpose of the joint business and the partners' responsibilities. A joint business plan describes all the activities that these business ventures must carry out to achieve specific goals. The relationship between the two parties and their goals must be clearly understood.

  8. Improve Collaboration and Joint Business Planning Results in 3 Steps

    The plan should include expected trends, initiatives and the forecasted market environment, so that there is a greater chance for the goals and objectives within the plan to be attained. The higher the level of collaboration between the organizations, the closer you will move toward the theoretical definition of Joint Business Planning.

  9. PDF JOINT BUSINESS PLANS: ACHIEVING THE ELUSIVE WIN-WIN

    Joint. business planning, annual planning, buy and sell plans: over time the name given to joint business planning - or JBP - has evolved. However, the process for negotiating annual agreements that are collaborative, reflect mutual benefits and mitigate risk through alignment and contracting and assigning accountability is still an important ...

  10. Joint business plans: Achieving the elusive win-win

    Joint business planning, annual planning, buy and sell plans: over time the name given to joint business planning - or JBP - has evolved. However, the process for negotiating annual agreements that are collaborative, reflect mutual benefits and mitigate risk through alignment and contracting and assigning accountability is still an important process embraced by many businesses.

  11. Best Practice Joint Business Planning

    Joint Business Planning is mission critical for today's consumer products retailers and suppliers. The consumer products and retailing industry is very competitive and companies are seeking advantage. Companies with a well-defined JBP process are able to formulate win-win plans and execute more effectively and efficiently by focusing their ...

  12. Joint Business Planning Resource Guide

    As a result, retail buying and selling has become much more reliant on Shopper insights, market and business analysis (including eCommerce). And to help each other succeed, Retailer and Vendor sales teams collaborate in Joint Business Planning relationships which are more strategic and long-term than simply buying and selling the latest deals.

  13. What is a Joint Business Plan?

    A joint business plan is exactly what it sounds like - stakeholders from each organization sitting down to have a good old-fashioned conversation and plan for the next year/quarter. Senior leaders ...

  14. JBP: The Brave Approach to Writing a Joint Business Plan

    The definition of joint business planning is to work with a collaborative mindset towards mutual goals agreed upon for the benefit of the supermarket, supplier and shopper. The Brave Approach to Writing a Joint Business Plan with a UK Supermarket is about helping UK supermarket suppliers to identify their true business objectives. Also, to ...

  15. Joint Business Planning Template

    Summary. Use this template that includes a comprehensive set of tools to conduct joint business planning with key customers. Executive sales leaders responsible for account management can use the tools to identify and evaluate joint objectives, create a joint business plan and review progress against goals.

  16. Next-Generation Joint Business Planning

    The best way to have a productive and meaningful discussion about joint business planning between consumer goods companies and retailers is to establish early on that everyone is talking about the same thing. That's because joint business planning, or JBP, means different things to different people. "The term is really loose," says Patrick Fitzmaurice, CEO and "head farmer" of ...

  17. The Transformative Power of Data-driven Joint Business Planning

    Joint business planning is a collaborative approach to strategic planning between a retailer and supplier that aims to align their goals, objectives, priorities, efforts, and resources and create mutually beneficial outcomes. JBP is mission critical for today's CPGs and retailers who want to gain a strategic advantage in the marketplace.

  18. PDF The Partnering Group Joint Business Planning Process

    Joint Business Planning Process is industry certified and proven to drive positive results The Partnering Group Situation Assessment Retailers are re-designing their planning process yielding: • Fewer seats at the table - selective process to participate in Retailer JBP • Retailers need help understanding market (winners/losers) vs.

  19. The Importance Of Joint Business Planning

    The Importance Of Joint Business Planning. At Verde, we understand the impact of successful collaboration between B2B partners on business growth. The key to success is creating a joint vision that is grounded in marketplace realities, coupled with flawless execution. To solidify this success and identify course-correction options, partners ...

  20. Joint Business Plan: what's the point?

    This flavour of JBP is really a competitive negotiating tool, to be used to gain specific commitments and concessions. A retailer may be offered extra promotions for a cost price increase. A manufacturer might be promised volume growth in return for more investment. The numbers in the plan are only there to support the negotiation, and to be ...

  21. Why Joint Business Planning is the Key to Success for McKinsey and

    Improved decision-making: Joint business planning involves a collaborative approach to decision-making. This helps to ensure that decisions are made based on a range of perspectives and considerations. 4. Leveraging of resources: By working together, both parties can leverage their respective resources to achieve success. This can include ...

  22. Joint Business Planning

    Joint Business Planning is designed to deliver a shared strategy focus, mutual accountability (via a joint scorecard), and a unified work plan. Participants will be led through a process based on a real-world simulation that will include Customer Profile Development; Situation Assessment & Opportunity Identification

  23. Sony and Apollo's Plan for Paramount: Break It Up

    Sony and Paramount have different approaches to the entertainment business, and a deal would probably result in a U-turn for Paramount. Unlike Paramount, which streams its content on Paramount+ ...

  24. Apple's $110 Billion Stock Buyback Plan Is Largest in US History

    1:45. In a move fitting for one of the largest companies in the world, Apple Inc. just announced the biggest US buyback ever, saying its board approved an additional $110 billion in share ...

  25. Cómo pueden prosperar las "empresas conjuntas" en tiempos de crisis

    Futuro brillante para las joint ventures. En una encuesta realizada a 159 ejecutivos de empresas con joint ventures en todo el mundo, la mayoría (58%) creía que el actual panorama geopolítico favorece el establecimiento de joint ventures en lugar de fusiones y adquisiciones. Un número similar (60%) afirmó que las joint ventures son un ...

  26. Gartner Survey Finds Generative AI is Now the Most Frequently Deployed

    According to the survey conducted in the fourth quarter of 2023, 29% of the 644 respondents from organizations in the U.S., Germany and the U.K. said that they have deployed and are using GenAI, making GenAI the most frequently deployed AI solution. GenAI was found to be more common than other solutions like graph techniques, optimization ...

  27. Trillium Garden on the Common

    5 reviews and 18 photos of TRILLIUM GARDEN ON THE COMMON "Hey, man! So we're cruisin' through the common, searching for some righteous brews, right? And guess what? We stumble upon this joint. The dude at the "door" was like the definition of cool, man. We're chattin' it up, shootin' the breeze, you know, before we make our way to the bar. And holy smoke, the beers at this place were mind-blowing!

  28. Developers mull tower projects in troubled downtown Seattle

    An analysis by the city Office of Planning and Community Development found this could net up to 1,200 new housing units over 20 years. That would be a big turnaround for a gritty area where people ...