P&G Seeks Deeper Retailer Partnerships with Three-Year Planning

Procter & Gamble (P&G) is expanding its conversations with retailers beyond just pricing and promotions, according to CFO Andre Schulten. Speaking at the Barclays Global Consumer Staples Conference, Schulten emphasized that the strongest partnerships between manufacturers like P&G and retailers extend far beyond annual margin negotiations.

According to Schulten, these relationships work best when both parties agree on a shared mission to grow the categories in which they compete. This can open up conversations around how the manufacturer and retailer jointly drive growth through innovation, media spending, in-store activation, supply chain operations, and more.

By focusing on a three-year plan, rather than just one-year goals, partners can make fundamental changes to the way they collaborate and operate. However, Schulten noted that operationalizing strategic alignment down to each department level is not always easy. He also emphasized the importance of having an escalation mechanism in place to quickly address misalignment issues.

Schulten's vision for a best-in-class relationship highlights the need for alignment on mission and the ability to create value across a broader set of measures, including media spending, supply chain reliability, and quality.