5th Mar 2010 - 00:00
Abstract
Sustainable distribution solutions are becoming increasingly important in the food industry. But how can a company be sure that they're picking the right distributor? Paul Pegg, vice present of Keystone Distribution Europe, outlines the six crucial questions every company must ask before they sign a contract.
There's an old proverb that says: customers are not inherited. You don't have to look too far to see the reality of this on every high street. Take the example of a bustling restaurant, loved by all its patrons. The owners sell-up and a new team take over what is a thriving business. Yet, almost inexplicably, the popularity bubble is burst and its formula no longer works. The food tastes the same but customers drift off. Something about the quality isn't the same and the magic ebbs away. Quality is made up of many facets, and the whole is greater than the sum of its parts. But determining this magic mix isn't always easy. Many companies realise this. So they take great care with sales, customer service and finance. They source high quality food and adhere to excellence models that aim to take care of every aspect of quality. But then they employ a low quality distributor – the type of company that is little more than a warehouse and a fleet of wheels. This type of distributor often knows very little about the foodservice outlets it delivers to. Its task is simply to drive up and deliver a few boxes before going on to another job. Choosing the wrong company to distribute your goods can affect the quality of your foodservice offering. So it's vital that you consider potential new suppliers very carefully. The secret is to look at where a distributor can add extra value. Of course, it's essential to take care of the pennies and pounds but don't let price be your primary decision making tool. Instead, ask a series of probing questions to find out more about the company. The following six questions will help you to pick the perfect partner. 1) What is your overall company vision? Choose a supply chain partner who is able to see the bigger supply chain picture. Make sure that it is one that will add to every aspect of your business and who clearly understands you. Remember, true understanding is about more than just the specification of the distribution system. It's also about knowing the needs of the managers at the foodservice outlet and working in partnership day in, day out. Ask yourself: 'How willing is this distributor to anticipate the needs of my company and do that bit extra to help us through difficult times?' 2) How embedded is your Quality culture? In some companies, the quality management process is something that sits on a shelf and only comes out when the auditors come in. But quality needs to be something that is lived by every member of the organisation from the boardroom to the warehouse. It needs to be part of the culture and something that is believed in and delivered by everyone. Look for evidence of a culture of continuous improvement by asking a range of staff members about their views on quality. Your supply chain partner needs to be a company that is good at proactively spotting what it can do better with an open attitude to making changes. 3) What is your people policy? It's important to choose a supply chain partner that trains and develops its staff effectively. If you were hiring an employee you'd insist on seeing the CV of the person you were employing. Treat prospective distributors in the same way. Ask to see the company's staff training and development plans. And look for evidence of strong internal communications systems and employee engagement strategies. Simple tools such as forums, employee newsletters and intranets demonstrate that employees have a voice in the organisation. And they help to give you a flavour of the type of people that the company employs. Make sure you also interview one or two of the drivers to find out if they are the sort of people you want delivering to your restaurants. Research has shown that around three quarters of drivers in the distribution industry don't know about the business they're delivering to, how to look after the products, or the health and safety procedures of the customer. You should be confident that the employees understand the business that
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