A Little Wine & A Lot More Trading Partner Trust
November 26th, 2009 | Steven LaVoieMusings from the 2009 IFMA/IFDA Presidents Conference
They say a little wine can help you learn a second language- dissolving the fear of making mistakes as you try out a foreign tongue. We also found it to be an excellent conversation complement at the ArrowStream wine tasting event during the IFMA/IFDA Presidents Conference this November. While none of the attendees, who included foodservice industry executives from leading restaurant chains, distributor companies and manufacturing businesses, were at all nervous about sharing their industry savvy, the wine was a great reason to step back from the conference hubbub. It was a reason to gather, relax and muse philosophically about how to “fix” the biggest problems the industry faces today.
So, with wine in hand and conference badges off, what did this room of industry leaders reflect on?
First, there was the inescapable economy. Even the best of Bordeaux cannot erase the heavy weight of economic woe. With commodity prices increasing, foodservice leaders are once again faced with a struggle to cut costs at a time when their core costs are rising. It was agreed in most circles that night that the strongest weapon foodservice businesses have against cost creeping is supply chain knowledge and process excellence. The more efficient and informed your supply chain, the more control you have over costs.
The second great area of focus for the industry and the leaders who attended the tasting was value menu programs. In light of widespread shifts in how people spend and save money, industry leaders agreed that smart value menus will attract and retain customers. The challenge to these efforts will be a successful launch and management of these programs in the marketplace as well as the struggle to win the attentions of a stretched and stressed consumer base.
At ArrowStream, our foodservice clients have found time and again that one of the most effective ways to increase the success of value menu programs is to better partner and integrate with internal departments (such as marketing, distribution, etc.). The better coordinated internal departments are in planning, creating, launching and monitoring local market promotions, the greater the results are.
The final thought was really more of an affirmation that open dialogue among foodservice trading partners will lead to great achievements. If one simple wine tasting can have so many industry participants and leaders agreeing and collaborating, consider what the results would be of a more open, trusting supply chain. Forums like these are essential to helping the entire foodservice industry work towards greater partnership and the eventual goal of widespread, strategic information sharing.
Establishing trust and common operational goals is the first step to successful foodservice industry supply chain data sharing as it focuses all parties on bottom line results rather than the small costs they can squeeze from their trading partners. While the goal of sweeping openness and trust across foodservice supply chains is a long-term and-some would argue-lofty one, it’s one well worth having because it will transform operations and expand profitability possibilities for the entire industry. And that’s a goal well worth raising your glass to!