Perfect Order Metrics-Driving Collaboration In The Food & Beverage Supply Chain

There are many operational issues and market dynamics, current and future, that will accelerate collaboration between producers and grocers. The most pressing include the potential for labor reduction and process optimization, higher energy costs, mass-market retailing, expanding regulatory pressure on food safety and security, and the continued emphasis on brand equity to maximize profits. Add to this, the globalization of the US economy and growth in the food service sector, and it becomes evident that retailers and suppliers must work together to create greater customer value. This will be achieved through improved service levels to the end-consumer, reduced infrastructure costs, highly niched marketing, continued premium brand focus and assurance of food safety and security.

Collaboration will serve as the springboard for this multi-faceted endeavor, with suppliers and grocers agreeing upon a set of performance metrics that will help attain many of these goals. The results from companies already participating in benchmarking are mutually reduced operating costs, enhanced service to grocers and their end-consumers, greater consumer loyalty and improvemets to both the top and bottom lines for all involved trading partners.