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White also highlights the need for growers and distributors to develop greater analytical skill sets. “If retailers start sharing more information about their strategies and customers with you, then you need to synthesize the data, understand what it means, and come back with some type of win-win initiative.”
It is also important for suppliers to be strategic in how much data they request and how they plan to use it.
Analytically savvy suppliers can gain access to a retailer’s information portal or request raw point-of-sale data and do their own quantitative research. In contrast, a less sophisticated supplier would be overwhelmed by this amount of information and not know how to use it effectively. Instead, suppliers should request preformatted reports with metrics and scorecards to help generate actionable insights.
White suggests suppliers with limited analytical resources have an honest conversation with their retail category managers. He says to start by asking, “What information do you have available? What do you share with other suppliers? And what’s the crawl, walk, run progression I could follow to better use the information?” This will help suppliers figure out what types of retailer data can be incorporated into their joint planning processes.
Wrap Up
Although category management has its roots in consumer packaged goods and major retail environments, produce suppliers should avoid the “not invented here” stance. Category management is highly relevant to fresh fruits and vegetables. It can pave the way for growers and distributors to build long-term, collaborative relationships with grocery retailers that need strong fresh produce categories to compete in the marketplace.
With the right processes, communication, and analytical capabilities in place, category management benefits both parties. White indicates that produce suppliers can gain a greater share of the category by ensuring reliability of supply and helping retailers achieve their fresh metrics.
Grinstead concludes: “Effective category management can help everyone in the supply chain become more efficient and more profitable while providing a product that meets and exceeds the consumer’s expectations.”
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