Today’s consumer demands natural, high-quality and healthy ingredients. Grocery and food service teams are determined to deliver on these expectations, but success can be very difficult to achieve. Organics is a complex market with tight supply and limited suppliers and it takes a well-rounded sourcing strategy to be successful.
Summer is nearly here, and with that, so comes the season of farmer’s markets and roadside produce stands. Fresh, organic and locally-grown food is a big trend on dinner tables and restaurant menus, with worldwide sales of organic food reaching $81.6 billion in 2015 alone.
Who are your suppliers and are you asking them the right questions?
Strong supplier relationships are the foundation of an effective sourcing strategy, especially when it comes to the organics market where suppliers are limited – if you don’t have solid working relationships with these few companies, you risk the chance of not being able to offer organics to your customers because one hiccup could leave you with no other supply options. Having tight, trusting bonds with these partners will pay off in the long-run as they’ll be more willing to work with you on your specific needs and help you deliver the kinds of ingredients consumers are demanding.
Performing proper due diligence and asking the right questions before engagement with a supplier is critical. Cost containment is important, but shouldn’t be the only objective. Other factors, such as the suppliers’ reputation, quality control procedures, tier two suppliers and their geographic locations, could have an even larger financial and strategic impact on your business. The more due diligence you do and insight you have into their operations and working practices, the better you’ll be able to compete, monitor supplier compliance and performance and avoid supply disruptions.
