Exhibit 3: Traditional Cost Buckets

The Integrated CDF offers a significant opportunity to

reduce complexity while taking advantage of a cost

opportunity and deepening relationships with retail

partners. For instance, three companies in our study

said that they had integrated customized SKUs,

shippers, and displays into their CDF. That provides

real benefits to their customers while ensuring that

manufacturers are not giving away the farm.

#2: Invest Where You Should: The Tiered CDF

The industry has long struggled to balance the challenge

of being fair with the effort to allocate more funds to

customers that provide better returns. Partly a legal

issue under Robinson-Patman, partly a business

process issue since it’s much easier to fund everyone

at the same level, the one-size-fits-all approach is one

that companies have traditionally used. The problem

with this approach, as most sales executives know, is

that some retailers are grossly overfunded and others

are starving for more investment.

Exhibit 4: The Integrated CDF Takes a Holistic Approach to Spending