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Trade terms transformation in the wake of increasing European regulatory pressure

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Trade Terms (TT) has long been a sensitive and complex aspect of the relationship between retailers and suppliers, and short-term vision has resulted in negotiations based on total rebates rather than a rebate structure that links investments to the performance achieved. Implementation has therefore not brought the necessary transparency or a healthy base for negotiations.

Far too often, the short-term vision by those responsible for implementation has resulted in negotiations based on total rebates, and is followed by an artificial translation in listed trade terms. This behaviour is driven by lack of knowledge or misunderstanding of the underlying principles.

Read more about A&M’s 10 steps to transformation and key success factors.