Navigating supplier relationships in a volatile foodservice market.

The food service industry is, fundamentally, a sector of small businesses. Producers, suppliers and distributors are there to work for you, not the other way around. These partnerships are the lifeblood of the industry, especially in challenging times.
Right now is such a time. Costs are skyrocketing and margins are diminishing, making every week an uphill battle. Regardless of your size, finding a supply partner that can work with you and help you navigate these turbulent times is critical.
Rest assured, the right partners are out there. Here are five factors to consider when establishing supplier relationships to ensure the best outcome for your business.

1. Connect with the manufacturer
Today, foodservice operators rely on their distributors for insights and ideas to drive down operational complexity and increase sales. But there’s a great opportunity for these operators to engage with product manufactures directly. They can typically help with more than just pricing and value. For example, our category experts at Goodman Fielder Foodservice can make a real difference to your day-to-day operations.
Even though we collaborate with over 400 distributors in the market, we are also well placed to support the 80,000 independent operators that we want to connect with.
The most exciting part? It’s a win-win: you get quality products, excellent service, and support, and we make sure you get what you need to innovate and drive your business.

2. Know your bargaining power
Large foodservice chains can leverage their high-volume demand. They have the size and thus, the bargaining power.
But smaller operators have their own leverage. Their strength lies in menu diversity and broader scope. They have the flexibility to shift their offerings quickly and pivot from one day to the next. They don’t have the shackles of a big multi-store chain. And their broad menu means they typically need a larger basket of products, making them an attractive prospect to broad-based product manufacturers.
At Goodman Fielder Foodservice, we’re keen to understand and support these operators. We recognise that it’s these independent businesses that are at the forefront of future food trends. We can help equip them to innovate, positioning both parties as key players in future food trends.

3. Be transparent about your aspirations
Transparency nurtures successful relationships. An open relationship with your supplier allows them to understand your business’s ambitions and challenges. Knowing this allows us to figure out how we can best support you.
Once there’s trust in the relationship, it fosters resilience in tricky times. If a delivery is delayed, we’ll keep you informed and help devise an alternate solution. Your supply partners should be eager to resolve issues as part of their service. Resolving these issues strengthens relationships.

4. Negotiate to create value
Finding the sweet spot on price is a balance. There is no one-size-fits-all approach. If you’re clear about your expectations and priorities, your supply partner should be able to identify areas to add value.
And consider leveraging your ability to bundle products from one manufacturer. You might be comfortable with the price you’ve been paying for a single item but bundling 10 products could get you better overall value.

5. Fill your basket
Understand what your supply partners have to offer and if there’s an opportunity to leverage more of a basket offering.
At Goodman Fielder, we have strong brands and products across a large range of categories, many of which are kitchen essentials, from oils, flour, and rice, to artisan breads, pastry, mayonnaise, vinegar, and spreads. But it’s how we can put them together into a rich basket of goods that will drive value for you, our valued partners.
Finding the right supplier and negotiating a beneficial deal is the first step. Next time they visit, ask, “What can you offer me today?” This is the real foundation for a fruitful relationship.

What have we got for you today?

Let’s be better together. As a complete food partner, Goodman Fielder blends scale, scope, reliability, expertise, and tangible value. Take a tour of Goodman Fielder’s wide range of products and add us to your menu.