Are you one of those folks who, when prompted to participate in a problem-solving meeting or discussion, cannot help but get involved in the dialogue? Are you the type that likes to hang back and see how the discussion progresses and then give your two cents? I was reminded of a third type of person (just last evening) that has a tendency to want to lead the dialogue, quite certain that they understand enough of the facts to give great insight to those around me… um, him. Okay, I admit it, I assume too much and, I am one of THOSE people.
In the Foodservice industry, we are prompted with issues all of the time that seem like old hat. It is quite easy, at times, to be certain that everyone can see the problem, and everyone knows exactly how to fix it. Problems like contract negotiation with operators and distributors. Issues such as data collection and rebate management/
trade promotion management.We hear the terms: “earned income” and “billbacks” and “Sodexo/ITN” … and think, sure, everyone understands the complexity of the issue, and everyone knows where the problems lie. But, invariably, we run into situations all of the time that are clear foodservice problems that need distinct and clear answers. Often times, however, we spend a lot more time reminding folks that there is a problem than actually working to help resolve the issues with them.
First step: Admit you have a problem
Do you work for a manufacturer or a chain operator? Well, the first step is to admit you have a problem. You likely work in an organization where you have not yet standardized your contracts into unique categories. Maybe you are trading some form of electronic claim and billback data, but you are missing a large percent (or you are trying to data enter paper). The list goes on . . .
Second step: Seek help
So, you have come the conclusion that your organization is not quite “cutting edge” when it comes to
trade promotion managementt? Since you know you have a problem, then you must be willing to fix it. How do you fix it? Get yourself a team of folks willing to step back and study your contract business with an eye for standardization. If you are an operator, look for common themes in your distributor purchase deals or your manufacturer rebate contracts.
The same goes for you Mr. Manufacturer! You have deals in the marketplace (whether you have a standard place to track them or not). Find out what your deals look like. Begin to centralize them in one place and study the commonalities and trends in the deals. Then start to work toward standardizing your contracts around deal types that have worked in the past.
It is like my old friend Captain Obvious always says, “Find things that work and do more of that.” The dude is brilliant!
Third and final step: Commit to constant improvement and change
It is not enough to admit that your company is not the best at
trade promotion managementand rebate management. It is not even enough to do the analysis to find the holes or trends in your current contracts. You have to be committed to improve your
trade promotion management processes.
There are too many great answers to the problems to ignore the solution. If you wake up in one year and are still in the same place with your
trade promotion programs. . . if you are still processing the majority of your billbacks and rebate deals via paper. . . if you are still asking yourself ‘I wonder if that Aramark deal was profitable’. . . then you have avoided the commitment to improve. Do not let that happen.