Annual JBP Negotiation Framework for FMCG Key Accounts

TL;DR

Annual negotiations improve when JBP is treated as an outcome contract, not a spending negotiation.

Key Takeaways

• Build one shared value creation plan before discussing money.
• Tie trade investments to specific growth drivers and milestones.
• Document governance, review cycles, and exception rules.

Definitions

• JBP (Joint Business Plan): annual supplier-retailer growth plan with agreed initiatives, investments, and KPIs.
• Outcome Contract: an agreement where support levels are linked to delivered results.

Checklist/Framework

1. Start with prior-year diagnosis: what created value and what did not.
2. Agree growth ambitions by category segment and shopper mission.
3. Prioritize initiatives across assortment, pricing, promo, and media.
4. Link each investment line to measurable outcomes.
5. Define governance cadence and escalation rules.
6. Run quarterly JBP health checks with corrective action triggers.

Examples

A household care supplier and key account moved from fragmented term discussions to a structured JBP with quarterly checkpoints. Investments were tied to specific category initiatives, and underperforming mechanics were reallocated faster, improving return on trade spend.