Survival, success mean catering to the customer

When times are challenging, there is always a new war chant that surfaces as the nouveau buzz word for survival and success. After attending a number of industry functions recently, it seems that the latest elixir to stop the coughing and sputtering is the new ("You Bet Your Life") secret word, customer.

The duck drops down, and all wise men collect $100 and go to the front of the class. How could anyone conceivably dispute that focal point for any and all decisions? Where was the focus before this, and how did corporate America supposedly get so far removed from the buyer?

Layers of bureaucracy shielded management's view and thwarted the ability of the front-line troops to control their position and increase their share of market. Yes, more latitude and decision-making authority should be placed with those closest to the customer in order to satisfy customer needs.

The operator, supplier and - believe it or not - the distributor all must concentrate on buyers-customers and must provide goods and services to re-establish loyalties and to forge a bond that is critical for both supplier as well as operator. The supplier can't afford to bid and rebid in a whirlwind of low-ball cherry picking, knowing full and well that the customer couldn't care less about whom they are doing business with. Brands cannot carry the day without merchandising and other supportive services, which makes the difference between a commodity and a brand identity that means consistency, innovation, marketing and R & D support.

Suppliers need to evaluate the quality of their products and services from the customer perspective and not from their production capabilities. Suppliers must listen to those front-line troops who relay back to their command post the messages communicated from not just the purchasing departments but from operations, marketing, R & D, etc.

But while the suppliers are beating their breasts, searching for the cure-all remedy for a contracting marketing climate, it is time for operators to do a little breast beating themselves.

Many chain organizations have totally lost the linkage between the various elements of their organizations. The tremendous turnover of top management has cost the industry dearly, as it has created an environment of uncertainty that needs to be dealt with.

Operations must know and relate to their suppliers, as they are the ones who must use the products and services sold to their purchasing departments. Purchasing must allow major suppliers to communicate properly throughout the organization, as the operator's customer - consumer - satisfaction is at stake. Marketing, operations, engineering, R & D along with purchasing must be involved in the evaluation process to determine those companies that will be working in concert with the operators' objectives, goals and needs in the ongoing pursuit of consumer loyalty.

Operators' loyalty to key suppliers has its rewards and benefits. Behind every successful foodservice company are many suppliers who have broken their backs to serve their customers and have been rewarded with loyalty that has brought profits to both sides.

Profit is not just a good word for operators, but is a necessity for Republicans, Democrats, Independents, and, believe it or not, all business, or else it ain't much of a business. Partnerships are based on communications and on the understanding of each other's essence and soul and can not be a one-sided relationship

I have always been impressed with Norman Brinker. He has had credibility in each and every role he has played in the foodservice business and society. Norman has always been committed to his customers and has an unparalleled record of success. When Brinker received the Pioneer of the Year Award at MUFSO last fall, he thanked his peers, Nation's Restaurant News, and then he thanked the suppliers who had supported his growth and success over the years. He even went so far as to arrange for them to be in the audience, where he introduced them, explaining the story of each company's role in his success over the years.

This is the opportunity in these difficult times: Suppliers must improve their ability to stay close to their customers, while the foodservice operators who want to improve their customer transactions must have the support and respect of those supplier companies that can ensure their success.

Thomas J. Haas is a foodservice industry consultant, specializing in marketing, sales and strategic planning.

COPYRIGHT 1993 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
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