Research Summary – Food & Beverage Sector

here might be something in this collaboration business!

This is the final part of our series, the Executive Summary. In 2017 it was finally dawning on this sector that collaboration could be a better way of working; cost reductions, better quality and products, less CO2 and higher profits. As usual where relationship management was being intelligently applied the results were obvious.

Executive Summary

Between 2005 and 2017 we examined 25 relationships involving companies operating in the food and beverage sector. This report summarises the findings from our research. It does not concentrate on the individual projects but rather on the particular relationship management features that characterise this sector.

We summarise this research in four parts:

• Baking, Brewing and Poultry Supply Chain

• Co-Manufacturers

• Food & Beverage Logistics

• Manufacturers & Retailers

Their relationship performance is compared in the chart above.

Overall Conclusions

• Across the sector traditional ways of operating with partners is still evident with a focus on price, and traditional methods of dealing with ‘suppliers’ and retail customers resulting in poor collaboration from both sides and self-centred behaviours

• Gradually it is dawning on the supply chain participants that collaborative working could provide increased benefits such as cost reductions, improved quality and incentives to innovate

• Large companies in this sector will often ally with small specialist companies that can provide unique products and benefits and, managing these relationships will often challenge their established methods of dealing with ‘suppliers’

• Co-manufacturing collaboration involves a much closer interaction which results in the growth of interdependence and as such, regardless of the size difference, there will be a levelling of the balance of power between the partners. This can cause tensions which are difficult to manage

• Where there was strong, determined leadership from relationship managers, the enterprise adapted to match changing business requirements. Where it was not present there was complacency and dissonance

• Effective collaborative management along the supply chain was often patchy. Where careful attention was devoted to the interaction processes between members considerable success was achieved both in terms of cost reduction and competitive advantage. It is clear that the ability to replicate such collaborative relationships with other partners is a valuable capability

• Sustainability was often seen as a by-product rather than a prime motivator

• Relationship management characteristics do not appear to vary, despite international location

“They don’t think that we are important. Nobody ever asks us what we can do to help.”

To download the full report click here.