More work for suppliers

5. More work for suppliers

Our plan was to start 2025 with a focus on each of our 10 trends each week. We are going to get back to that plan. If there are more changes to the situation or support we can provide, we will pause the trends again.

Retailers continue to shift more work to suppliers. If you want to sell into the large Canadian retailers you need to be prepared to get them what they want, when they want it, where they want it. This requires resources and people who know what they are doing. The model of portals and supplier driven data entry requires a certain type of work force. Retailers expect suppliers to have the ability and time to do this work for them. It does not make it easier because they are not great at showing you how to do it and they themselves do not always know how to do it.

Data integrity needs to be there

There is more and more reliance on information technology to operate business. With the landslide of artificial intelligence applications and other platforms you might wonder who, if anyone is making the decisions. Retailers continue to embrace technology as a means to improve their ability to compete and reduce costs. Technology is valuable but it does rely on accurate data to function.

When I was at Loblaw we talked a lot about data integrity. A fancy way to say every single character entered into the system needs to be correct. If you do not have 100% data integrity there will be issues. Everything from UPC codes to product size to lead time all have to be correct. There just are not the same amount of people, with the practical experience to ensure items get shipped or priced. Each retailer has their own issues with data integrity. Some have acquired businesses that operated with different platforms and they have patched them together. Others rely on information technology much more than others. Walmart are probably the major retailer that rely on their system the most.

Suppliers need to ensure your data integrity is 100%. You have to supply your customer with the correct information. You also need to have people working in your business who can understand the data and maintain it correctly.

Suppliers need to understand retailer’s systems

When you think of the amount of data required to maintain 1 single SKU in a retailer’s business it is staggering. If you have been through the process of Walmart’s item 360, you know the amount of data they require for each SKU. If you have not had exposure to item 360, it is the platform Walmart have implemented to input all of the information attached to each SKU. You have to get your inputs 100% correct or the system will reject the upload. When that happens you are back to the starting point, which is very frustrating.

Hopefully you noticed the word YOU in that sentence. In the old days, when I was at Loblaw suppliers would present an item and we would set it up in the system. Retailers have decided suppliers should know their items better than anyone, so they should have access to set up the items once they are approved and listed. There is some rationale to this but there is a lot more onus on the supplier to understand what is required and get it into the retailer’s system.

When you are hiring salespeople, they need to have these abilities. They need to be able to sell and develop relationships, but the technical side is really increasing in importance. A person who has these skills is very valuable. If you decide brokers are the best option to manage head office sales, they have to have the ability to do this work. It is definitely one skillset that would be worth the investment if you find this type of work a challenge.

Some retailers are better than others at telling suppliers how to work within the system. Loblaw do have pdf documents to walk you through the steps. Make sure you take advantage of any support they provide. They also are more willing to help when you can demonstrate you went through the manual first. Retailers believe this is your job, not theirs.

This is a reality so don’t fight it or expect exceptions

In the past, when you had an issue with getting paid or lead times being wrong you could call someone and often they would resolve the issue. Now they don’t even know how. This is not a slight against them, they really do not know what to do or where to start. They rely on the technology so much and they each have their own tiny part of the big process it is not possible for them to go in and fix the issue.

The workforce within most retailers has changed a lot. People know their role but they do not get exposure to other parts of the business or even other jobs. When people stayed with one employer for 40 years they had a breadth of knowledge across different parts of the business or at least knew who to call. That is not the case anymore so do not ‘hope’ you will find someone who can help you. You have to go through the portal to query late payment and you need to use the access they provide.

Our industry continues to evolve. Suppliers need to evolve with it. AS much as you would like to focus on just producing a product there is so much more to being a good supplier. Understanding how to operate within your customer’s systems is one task than can set you apart from the competition. The big players have devoted a lot of resources to this because they see it as part of their job. They also see it as an opportunity to promote their brand and accomplish some of their objectives.

Peter

SKUFood Recipes for Success Podcast

In this episode, we’re excited to feature Carzan Local Meats, a family-owned business from Southey, Saskatchewan, dedicated to producing premium grass-fed beef and jerky products. Founded on the principles of sustainability and regenerative ranching, Carzan has become known for its locally raised meats and innovative flavour offerings in their growing jerky business.

Join us as we delve into their journey with Carter and Carmen, from their family roots to their commitment to providing top-tier products that reflect their passion for sustainability and community.

Get ready to hear the inspiring story behind Carzan Local Meats.

Big brands are responding to Canadians

During my time in the food industry, this is probably the most focus there has been on where products are coming from. During the pandemic we experienced more talk about ‘local’ because people were concerned there would not be food. This is a different issue with the threat of tariffs from U.S.

People are looking at labels. When a company like Kraft Heinz creates a Super Bowl tv spot in a week, you know the issue is important to them.

It is interesting how these large U.S. based consumer packaged goods companies are trying to respond. Yes, some Heinz ketchup is made in Quebec, with Canadian tomatoes by Canadian people in the plant. We also have to remember Kraft Heinz is a huge company based in Chicago, Illinois. Yes, Frito Lay make potato chips in Canada from Canadian potatoes but they are a subsidiary of PepsiCo based in Harrison, New York. We will let you decide how Canadian you consider these products.

You can’t change what they do but you do control your own packaging and consumer marketing. It should be very clear where your products are made and if you are a Canadian company. Right now this can get your product into the shopping cart more than a lot of other attributes.

FCC Distributor event in B.C.

Join Coby Palidwar National Sales Manager, Left Coast Naturals, and me as we discuss the ins and outs of working with a distributor.

From knowing when your business is ready to make a move and what to look for when choosing a distributor to communicate and work with in a way that generates the most value, you’ll learn actionable insights you can bring back to your business.

I do have travel coming up to Toronto, Calgary, Lethbridge and Niagara Falls so if you want to connect or have an event in any of these locations give me a call or send me an email.