INDUSTRY VIEWPOINT: Reinventing the supplier-customer relationship
INDUSTRY VIEWPOINT: Reinventing the supplier-customer relationship
To paraphrase a quote I read recently, "Why change? Survival is not a requirement."
For many companies in the produce industry, that choice is not theoretical. Either they change the way they're doing business, or they won't likely survive.
As United Fresh Fruit & Vegetable Association heads into our second century of service to the produce industry, our members are coming together to share a vision, construct their own individual plans, and then go out into the marketplace to not only survive but thrive.
While competition has never been so tough, opportunity has never been greater for those who find the way to success. Our mandate from the new government health policy is to literally double consumption of fresh fruits and vegetables. How can we dare hope to achieve that objective?
If we're to be successful, it's time to focus on reinventing the produce supplier-customer relationship. That's what the United Produce Show at FMI is all about. After 100 years of our industry talking with ourselves at trade shows, we're now reaching out as a vital cornerstone of the food industry to fundamentally reshape and empower our relationships with customers, competitors and suppliers alike. And all of this has one focus: concentrating the entire produce supply chain on the consumer - the mom or dad, teenager or senior, single parent or DINK - dual-income, no kids - who decides over a billion times a day whether to buy and eat fresh produce. Here's how we're measuring our success.
1. Are we moving the produce-customer relationship from a single point of contact between buyer and seller to multiple points of contact among both management teams?
It wasn't long ago that our industry was driven by a guy at a sales desk, working to move yesterday's production, calling a buyer sitting at a similar desk thousands of miles away. Of course, that still holds true for a portion of our business, but today we need different partnerships if we're to truly double produce sales. We need produce marketing VPs and retail merchandisers talking about promotional ideas; growers and consumer affairs specialists talking about consumer tastes and preferences in new varieties; produce and restaurant partners talking about menu development; and operations folks throughout the supply chain communicating about logistics.
And, none of these conversations are about today's sale or the price of the box. These are the relationships being built at the United Produce Show at FMI.
Long-term profitability will be driven through this mutual supplier-customer commitment to delighting the consumer.
2. Are we elevating the produce-customer relationship to the CEO suite?
Why is it that every other food sector engages top retail executives in strategic visioning for win-win partnerships, but produce suppliers often remain largely out of sight to all except the procurement office?
With produce driving where consumers choose to shop and an increasing share of overall store profitability, it's about time that produce executives and retail executives got to know each other a little better. Last year at the show, it was clear that many in senior retail management were getting their first look at produce suppliers. Won't it be great when they come back to your booth in a few weeks and can talk about your business together?
And while we're at it, let's see if we can't build support for more produce directors moving into the highest levels of retail management as well.
3. Are we creating one seamless sales chain for produce, not just a supply chain?
We're doing better on supply chain efficiency (although there's plenty of room for improvement), but what about our sales chain? How often do we drop produce at the retailer's or restaurant's back door and hope for the best?
Think for a minute about the impact that individuals who actually sell our products to consumers can have on our success.
That's why United has launched a new Retail Produce Manager Awards Program to recognize those individuals on the front line of our sales chain to consumers. One retail VP told me recently that a good produce manager can make a 20 percent difference in store produce sales. Where else can we get that growth impact?
4. Are we breaking our isolation and empowering sales relationships with new partners?
One of the most powerful forces at the United Produce Show at FMI is the ability to visit with non-produce partners. For the first time, produce is on equal footing with center store brands, private label, specialty foods, organics, etc. Sure, many of these companies are your competitors, but one of them just may be your new partner. Can you harness the power of cross-merchandising, co-branding or even logistics for direct store delivery of your produce items?
You can't walk the expo floor of all five show partners without being bombarded with new ideas for your business.
5. Are we expanding trade show hospitality into year-round partnerships?
It's important that we guard against conventions becoming more social gatherings than business-driving events. We've designed the United Show at FMI as an intense, business-oriented trade show and educational conference, allowing our exhibitors and attendees to conduct real business at the show. Then, throughout the year, we're pursuing these same objectives, bringing members together in other senior level retail executive conferences; in conferences with restaurant partners looking to boost produce on menus; in trade missions, grower tours and hands-on education programs; and in the context of our own volunteer leadership meetings.
Bottom line: It takes strength to change. It won't be easy for produce suppliers or customers to question the norms of our relationships or to break with the customs of the past. But I keep coming back to that government edict to double fruit and vegetable consumption. If our industry is satisfied with 1 to 2 percent growth, then this column is way off base. But if you're serious about reaching that target in your own sales of fresh produce, then it's time to do something differently than we have in the past.
The United Produce Show at FMI is a good place to start. Come join us on the journey.
(Tom Stenzel is president and chief executive officer of the United Fresh Fruit & Vegetable Association.)
For many companies in the produce industry, that choice is not theoretical. Either they change the way they're doing business, or they won't likely survive.
As United Fresh Fruit & Vegetable Association heads into our second century of service to the produce industry, our members are coming together to share a vision, construct their own individual plans, and then go out into the marketplace to not only survive but thrive.
While competition has never been so tough, opportunity has never been greater for those who find the way to success. Our mandate from the new government health policy is to literally double consumption of fresh fruits and vegetables. How can we dare hope to achieve that objective?
If we're to be successful, it's time to focus on reinventing the produce supplier-customer relationship. That's what the United Produce Show at FMI is all about. After 100 years of our industry talking with ourselves at trade shows, we're now reaching out as a vital cornerstone of the food industry to fundamentally reshape and empower our relationships with customers, competitors and suppliers alike. And all of this has one focus: concentrating the entire produce supply chain on the consumer - the mom or dad, teenager or senior, single parent or DINK - dual-income, no kids - who decides over a billion times a day whether to buy and eat fresh produce. Here's how we're measuring our success.
1. Are we moving the produce-customer relationship from a single point of contact between buyer and seller to multiple points of contact among both management teams?
It wasn't long ago that our industry was driven by a guy at a sales desk, working to move yesterday's production, calling a buyer sitting at a similar desk thousands of miles away. Of course, that still holds true for a portion of our business, but today we need different partnerships if we're to truly double produce sales. We need produce marketing VPs and retail merchandisers talking about promotional ideas; growers and consumer affairs specialists talking about consumer tastes and preferences in new varieties; produce and restaurant partners talking about menu development; and operations folks throughout the supply chain communicating about logistics.
And, none of these conversations are about today's sale or the price of the box. These are the relationships being built at the United Produce Show at FMI.
Long-term profitability will be driven through this mutual supplier-customer commitment to delighting the consumer.
2. Are we elevating the produce-customer relationship to the CEO suite?
Why is it that every other food sector engages top retail executives in strategic visioning for win-win partnerships, but produce suppliers often remain largely out of sight to all except the procurement office?
With produce driving where consumers choose to shop and an increasing share of overall store profitability, it's about time that produce executives and retail executives got to know each other a little better. Last year at the show, it was clear that many in senior retail management were getting their first look at produce suppliers. Won't it be great when they come back to your booth in a few weeks and can talk about your business together?
And while we're at it, let's see if we can't build support for more produce directors moving into the highest levels of retail management as well.
3. Are we creating one seamless sales chain for produce, not just a supply chain?
We're doing better on supply chain efficiency (although there's plenty of room for improvement), but what about our sales chain? How often do we drop produce at the retailer's or restaurant's back door and hope for the best?
Think for a minute about the impact that individuals who actually sell our products to consumers can have on our success.
That's why United has launched a new Retail Produce Manager Awards Program to recognize those individuals on the front line of our sales chain to consumers. One retail VP told me recently that a good produce manager can make a 20 percent difference in store produce sales. Where else can we get that growth impact?
4. Are we breaking our isolation and empowering sales relationships with new partners?
One of the most powerful forces at the United Produce Show at FMI is the ability to visit with non-produce partners. For the first time, produce is on equal footing with center store brands, private label, specialty foods, organics, etc. Sure, many of these companies are your competitors, but one of them just may be your new partner. Can you harness the power of cross-merchandising, co-branding or even logistics for direct store delivery of your produce items?
You can't walk the expo floor of all five show partners without being bombarded with new ideas for your business.
5. Are we expanding trade show hospitality into year-round partnerships?
It's important that we guard against conventions becoming more social gatherings than business-driving events. We've designed the United Show at FMI as an intense, business-oriented trade show and educational conference, allowing our exhibitors and attendees to conduct real business at the show. Then, throughout the year, we're pursuing these same objectives, bringing members together in other senior level retail executive conferences; in conferences with restaurant partners looking to boost produce on menus; in trade missions, grower tours and hands-on education programs; and in the context of our own volunteer leadership meetings.
Bottom line: It takes strength to change. It won't be easy for produce suppliers or customers to question the norms of our relationships or to break with the customs of the past. But I keep coming back to that government edict to double fruit and vegetable consumption. If our industry is satisfied with 1 to 2 percent growth, then this column is way off base. But if you're serious about reaching that target in your own sales of fresh produce, then it's time to do something differently than we have in the past.
The United Produce Show at FMI is a good place to start. Come join us on the journey.
(Tom Stenzel is president and chief executive officer of the United Fresh Fruit & Vegetable Association.)
