Why joint business planning is being rewritten for today’s CPG environment

Joint Business Planning (JBP) is undergoing a evolutionary shift. Once treated as a tug-of-war between CPG manufacturers and retailers, JBP is undergoing an evolutionary shift. What has historically been an adversarial sales planning exercise is now becoming a strategic, cross-functional discipline that directly impacts revenue growth management, margin performance and retailer contribution. Driven by an environment defined by economic uncertainty and decreasing consumer loyalty, CPG manufacturers and retailers can no longer afford fragmented planning or intuition-driven decision-making. This two-part article series explores how modern JBP is evolving, first by redefining the paradigm and roles required for success, and then by outlining the processes, data, and technology needed to execute revenue growth management-driven joint business planning effectively.

What joint business planning looks like today in a revenue growth management framework

At its core, Joint Business Planning is a structured collaboration between manufacturers and retailers to set shared goals, build aligned initiatives, and measure performance. It moves beyond negotiation into partnership.

A modern JBP program includes:

• Shared strategic objectives
• Joint category and shopper insights
• Promotional and pricing strategy
• Financial guardrails and accountability
• Real-time visibility into performance
• Year-round continuous improvement

When executed well, JBP becomes a shared playbook, clearly defining goals, roles and measures of success rather than a spreadsheet exchanged during line reviews.

Roles, priorities, and measures of success in CPG joint business planning

CFOs and Finance VPs

Finance leaders ensure retailer plans align with corporate financial goals.
They focus on:

• Margin contribution
• ROI on trade investment
• Accurate revenue forecasting
• Budget adherence
• Risk mitigation

Success is measured through improved profitability, cleaner forecasts, and stronger retailer contribution. These responsibilities position finance as a critical steward of enterprise revenue growth management.

Sales Directors and Account Managers

Sales leads own retailer-specific execution and relationship management. They prioritize:

• Net revenue targets
• Distribution and merchandising
• Promotional execution
• Calendar compliance
• Category growth

Their success is measured by incremental lift, share gain, and annual operating plan performance.

Controllers and Accounting Directors

These teams safeguard financial accuracy and reduce leakage.
They focus on:

• Accurate accrual entry
• Deduction identification & resolution
• Reconciliation timeliness
• Audit readiness

Their KPIs include deduction aging, accrual accuracy, and period-close efficiency.

Why cross-functional alignment matters for joint business planning success

Strong JBP requires clear communication and shared KPIs across finance, sales, accounting, and RGM teams. When these groups operate collaboratively:

• Promotional outcomes become predictable
• Retailer conversations become more strategic
• Budget deviations shrink
• Contribution by customer becomes a known quantity

Without a shared playbook, teams default to functional priorities. With one, finance, sales and accounting operate with the same assumptions, rules, and success measures.

The market forces transforming joint business planning

1. Economic pressures & margin compression

Inflation and elevated production costs put pressure on P&Ls.

The U.S. Producer Price Index (PPI) for food manufacturing remains significantly above pre-2020 levels.

2. Retail consolidation & increased retailer expectations

Large retailers continue expanding market share while expecting more transparency from manufacturers. JBP has become a critical platform for collaboration.

3. Shifts in consumer behavior

Shopper preferences continue to evolve:

• Growing demand for value and private label

• Increases in omnichannel grocery

Retailers expect manufacturers to bring shopper and category insights grounded in data.

4. The rise of revenue growth management (RGM)

According to the Promotion Optimization Institute, 60%+ of CPG companies are expanding RGM capabilities, including analytics and trade optimization.

RGM has become foundational to JBP success, connecting financial, commercial, and promotional planning

Why joint business planning can fail and what good looks like

While most CPG manufacturers recognize the importance of joint business planning, many struggle to translate intent into consistent results. In practice, JBP often evolves organically rather than by design, leaving teams operating without a shared playbook. Legacy processes, fragmented data and competing internal priorities push organizations back into negotiation mode rather than strategic execution. Without a clearly defined operating model, shared performance measures, and disciplined execution, even well-intentioned plans can fall short. This can result in inefficient trade investment, strained retailer conversations, and limited insight into what truly drives growth.

Common pitfalls

• Fragmented data sources
• Siloed annual operating plan processes
• Internal misalignment between finance and sales
• Limited or inconsistent post-event analysis
• Negotiations driven by anecdote, not analytics

Characteristics of high-performing JBP

• Unified retailer scorecards across finance and sales
• Shared KPIs (volume, spend, margin, contribution)
• Transparent customer P&L and profitability
• Scenario-based promotional planning
• Consistent post-event evaluation
• Clear playbooks and governance

for profitable growth, grounded in a shared playbook rather than one-off negotiations.

Building the foundation for more profitable retailer partnerships

Joint Business Planning is evolving rapidly. Manufacturers that establish a structured, data-driven JBP process are better positioned to grow top-line sales, protect margins, and build trusted, strategic retailer relationships.

The second part of this article will explore how to operationalize the joint business planning model, turning strategy into a shared playbook through process design, analytics and technology.