SugarCreek: Brandworthy Food Solutions

Even as the economy has navigated twists, turns and economic uncertainty, Americans' appetite for eating out doesn't seem to have diminished. In fact, muses Forbes' Darren Tristano, traditional QSR restaurants have found new rivals in a segment dubbed “QSR-plus,” which takes the QSR concept and simplifies its menus while elevating ingredient quality. What does this shift mean to the fast food supply chain? It means that partners across the chain, from growers and manufacturers to distributors, need to be prepared to recognize and master unique challenges, particularly in sourcing and safe transport-storage routes.

The "fast" in fast food refers to agile fulfillment and ordering as much as it does serving speed at the consumer level. One surprising place that quick service restaurants fall behind, however, is in innovation. Watch the trends and promotions carefully and you'll start to see an echo chamber of similar ideas bouncing from one major chain to the next. Additionally, while these offerings may be unique to the fast food supply chain, they're usually on the heels of the same breakthroughs in consumer-facing market segments like grocery stores.

The following are 3 ways that fast food industry often trips over its own feet in the quest to turn heads.

Procurement specialists in the food supply chain have a lot of "ands" to contend with. The products they source and purchase must be delicious and readily available, affordable and safe. The near-explosive growth of boutique and specialty providers in the food industry have driven consumer demand beyond high-end markets in recent years. Coupled with consumer awareness steering ethical buying practices, there are far more "ands" to consider in today's procurement market. 

Are your procurement approaches ready to tackle this enticing new opportunity head on?

Technology is becoming the tie-breaker between large companies after the same demographic, and nowhere is competition more hungry — pun intended — than in the food industry. Using new supply chain technology not only helps companies deliver safe, fresh product, it allows them to glean a wealth of data in the process. However, not all forward-looking leaps are for the better, especially when they're implemented a little too hastily. Here are four common pitfalls to watch out for when considering implementing new technology in your food supply chain:

What is the most important job of your food supply chain: getting items quickly, cheaply or safely? If you compromise speed or cost, you may lose some customers over pricing. However, if you compromise on the quality of goods for the sake of driving down price points, you risk losing everything — consumer perception, trust and loyalty. When considering new supply chain partners or assessing the suitability of existing ones, quality control checks should be a mandatory component of your supply chain logistics. If they slip up, you're also on the hook for every aspect of that mistake going forward, and those ripples can have a major impact.

Do customers have a right to know the intricate details where their food comes from and how it is grown? Increasingly, they are affirming they do by voting with their dollar, supporting and financing transparent food supply chain reporting over opaque or obscured information availability.  Additionally, food recalls and scandals have made working and moving through the food industry more perilous than ever as we approach the second quarter of 2016, which means that supply chain professionals have seen their job duties increase in weight and importance by degrees of magnitude. Risk management and meeting consumer expectations don't have to be mutually exclusive propositions for your business, as long as transparency is the goal of both.

Technology has revolutionized the growing, harvesting and packaging of food products, but too often, supply chain partners treat this as a one-way benefit. In fact, gathering data to analyze and use as a forecasting tool is one of best methods for improving procurement from a retailer's perspective. Food technology can be structured to convey considerably more information than mere stock shortages. It can become a mini SWOT-style analysis for what you're doing right — and help pinpoint areas that could use a little improvement. 

To those unfamiliar with the concept of lean principles in business operations, the traditional definition of "lean" seems at odds with the food supply chain, which is itself a process dedicated to feeding the end consumer. In reality, lean manufacturing and fulfillment can help produce wider margins of profit and success. They achieve this through minimizing waste and manifesting continual improvement efforts that create an inhospitable environment for performance-robbing mistakes, poor judgment calls, food waste and other common pitfalls of the procurement team. Here's how to "get lean" in your supply chain and reap the benefits.

While there are many new additions to flavorings, presentations, pack sizes and other format-based attributes of meat, the core product remains essentially the same. This means that meat distributors have begun to hone their offerings in the treatment, transport and storage of that product to remain competitive. If your current or potential meat distributor doesn't utilize the IoT and supply chain data in their handling, it may be time to find a new one. Careful and transparent supply chain control leads to a better presentation, taste and perception on the consumer end of the food supply chain, after all. Companies that are still using "analog" meat suppliers as tech marches forward could find themselves outmatched among competitors.

Imagine for a moment that you see a stage. On it, several other food brands are enthusiastically talking about their products, and they've amassed quite a crowd. You are considering climbing up on stage and doing the same. The crowd is already there, after all. However, a closer look may reveal that the stage isn't very well-constructed, and the people already on it might not be individuals you'd want to associate your brand with. This is the kind of situation a grocery chain can find itself in when dealing with foods that are marketed as "natural." It can align the priorities and practices of your brand with those of the largely-unregulated "natural" food industry and risks damaging your carefully-built customer trust and loyalty—especially if you’re using such marketing on store-brand products.