FoodSource continues focus on supply chain management
FoodSource continues focus on supply chain management
For many years now, FoodSource, a C.H. Robinson company based in Monterey, CA, has concentrated its efforts on offering total supply chain management for both its buy-side customers and its supplyside providers.
Ray Griffin, who serves as general manager of the operation, was one of the founding partners of the firm 15 years ago when the company opened its doors as a marketer with a particular focus on organic produce. During the first seven years of its life, FoodSource evolved into a full line provider with a strong emphasis on working with its customers to help them manage their supply stream. At the same time, the company worked with the best suppliers to fill those needs. “We were big believers in the 1 + 1 = 3 scenario,” said Griffin. “We worked very closely coordinating the efforts of both the supply side and the receiving side.”
In 2005, as the company was continuing to grow and evolve, it was acquired by C.H. Robinson to be part of that firm’s worldwide family of companies. Griffin said prior to the acquisition FoodSource and CHR had a very close working relationship. “We relied very heavily on C.H. Robinson not only for the logistics piece, but for its consumer brands and overall product line.” Griffin said for FoodSource the C.H. Robinson connection “brought a lot of economies of scale into play. C.H. Robinson also has a tremendous international presence which added great value for us.”
He added that of course, the financial stability and global footprint of the new parent company gave FoodSource the confidence and ability to use the connection to its advantage in working closely with retailers and foodservice operators.
Griffin said FoodSource is the direct representative for many growers and it also sources product on a daily basis. The company’s favored business approach is to complement their customers’ buying function by integrating as part of their “replenishment team.”
Griffin declined to state how much of the firm’s business is conducted on a contract-type basis “but it’s a higher percentage today than it has ever been before. That type of the business continues to grow.”
Griffin explained that a pre-committed program offers the best value to both the supplier and the buyer, and is the best way to bring efficiency to the supply chain. Just as it is easier and more efficient to arrange transportation when you have advanced notice, he said, it is more efficient to supply a buyer on a continual basis than it is if you are involved only in the spot market.
The company is the market leader in several items including melons, tropicals and corn. “We started with organics and they remain a large part of what we do,” Griffin said.
The firm is also working with its growers and seed varietal researchers on new proprietary varieties for a number of different commodities, including Mexican-grown tomatoes. Griffin said several items are in the development stage.
FoodSource and C.H. Robinson have a combined 276 offices worldwide.
Another important aspect of FoodSource and C.H. Robinson, according to Griffin, is the commitment of senior management to encourage both the company and its employees to integrate themselves into the fabric of their communities. In the Salinas Valley area, he said FoodSource is directly involved in the Relay for Life program and its supports its staff as they join various groups and organization including Leadership Salinas Valley, the Junior League and the Junior Chamber of Commerce. The firm also has a close working relationship with the nearby California State University-Monterey Bay. It supports the university’s school of business with a scholarship fund and currently has 13 graduates of CSUMB on its payroll. Griffin said that in hiring CSUMB employees, the company’s looks for students that have an entrepreneurial spirit.