Joint business planning with distributors

A joint business plan that only one side wrote isn't joint. Joint business planning is the process in which a brand and a distributor agree on shared goals for a period, the actions each side will take to reach them, and the measures both will use to check progress. The shared part is what makes it work.

Many plans fail for simple reasons: each side uses different numbers, the targets can't be measured, or nobody looks at the plan again until next year.

What goes into a joint business plan?

Keep it to a few pages. A typical plan has four sections.

Shared goals come first. These might include category growth in the distributor's accounts, distribution targets for key items and a limit on out-of-stocks. Goals should matter to both sides.

Then actions. Each goal needs specific commitments: the brand might fund a promotion or provide merchandising support, and the distributor might commit to placing items in a set of stores.

Next, measures. Each goal needs a number both sides can see and agree on.

Finally, a review schedule. Dates on the calendar, with named people responsible.

Some plans also include a short note on risks: what could knock the plan off course, such as a supply issue or a competitor's launch, and what each side would do if it happened. It doesn't need to be long. It just needs to exist.

Why do shared data and definitions matter so much?

Because the same word can mean different things. A brand often tracks sell-in, meaning shipments to the distributor. A distributor may track shipments to stores. Scan data tracks sell-through, meaning what shoppers actually bought. All three are "sales," and they rarely match in any given month.

Agree up front which measure applies to each goal. Distribution targets might use store-level scan data. Volume targets might use sell-in with a sell-through check. Writing these definitions into the plan prevents arguments later.

The same goes for store lists. If the plan targets "top accounts," define them by name or by a clear rule.

How do you set targets both sides can measure?

Base them on recent data and known changes. A target built on last year's results, adjusted for planned distribution and promotions, is easier to defend than a round number chosen for ambition.

Make each target specific and time-bound. "Grow the category" is a wish. "Add the 12-pack to 40 named stores by the end of the second quarter" is a target. The second one can be checked, discussed and adjusted.

Include a few leading indicators, such as distribution gains or promotion execution, alongside the outcome measures. They show whether the plan is on track before the quarter's sales are final.

Avoid too many targets. A plan with twenty measures gets reviewed superficially, if at all. Five or six that both sides care about will get real attention.

How often should you review the plan?

Quarterly is common, with a lighter monthly check on leading indicators. Each review should compare results with targets, note what changed and adjust actions where needed.

Bring category context to each review. If the whole category softened, missing a target means something different than if the category grew. Monthly reporting from NRS Insights and the archive on its news page can help frame those conversations. Category management principles offer a common language for both sides.

Keep a record of what was agreed at each review. Over a year, that record shows which actions worked and which didn't, and it makes the next year's plan easier to write.

On Monday, draft a one-page outline: three shared goals, the actions behind each, the measure for each, and four review dates. Send it to your distributor contact as a starting point for discussion.