Articles
CCC White Paper - Joint Value Creation - A Road To Customer Centric Partnership
What is Joint Value Creation (JVC)? It’s an exchange of capabilities and assets between two companies where both achieve what neither could do on its own. It focuses on growing or creating new value together, not capturing larger share of fixed value.
JVC will require a change in mindset, from:
- Transactional to strategic selling
- Product to Solution selling
- Vendor to Valued Partner
What is required for success?
- Build a Strong Foundation
- Have and use a deep understanding of customer & company
- Align Senior Management and cascading support
- Work Multifunctional
- Act Long Term
How Does Process Work: It starts with a thorough understanding of the shopper and the customer requirements, integrates these with your internal business and innovation plans, and comes to life through flawless execution of the Commercial Strategy. Three steps: 
- Create Value - Creating a Joint Plan
- Capturing the Value With New Metrics
- Commercializing the Value via Reinvestment
1. Create Value: Identify & agree on the value
- Leverage each other’s Capabilities
- Drive Joint Business plans co-owned by top customer management and company.
- Respect each party’s competencies and ability to deliver.
- Make use of all available supply and demand capabilities.
- Execute with excellence in-store and in the system.
2. Capture Value: Quantify the value systematically
- Put in place a joint scorecard with common goals and objectives co-owned with the retailer.
- Quantify both the supply and demand value against the retailer’s financial measures and shopper metrics.
- Reinforce the benefits of a long-term creation strategy.
3. Commercialize Value: Sell and manage the value exchange
- Establish the right process for value reinvestment behind key business drivers.
- Understand how all the parts fit together.
- Provide the necessary enablers to ensure mutual benefit.
Joint Value Creation Works, but remember…
- Value creation is defined by the customer, and differently within the same customer (levels and departments).
- Capturing value can be difficult, especially with higher forms of value creation.
- Commercializing value is important, especially if you’ve been giving it away for free.
Contact Information
Contact either Judd Weis, President & CEO, CCC, Ltd. at jweis@cincconsult.com or 513-516-0539, or Maria Edelson, Senior CCC Consultant at medelson@cincconsult.com
