Increasingly, vendors provide services to their customers above and beyond raw material spec sheets. A survey conducted by Dairy Foods' sister publication Prepared Foods asks food processors about the importance of value-added services they receive from suppliers.
Good managers work toward maximizing their resources and often look at added-on services from suppliers as part of their resource portfolio. Results from the 2003 Prepared Foods' R&D Vendor Services Trend Study illustrate the increasing reliance of food manufacturers on such vendor-provided services. Companies look to vendors to provide analytical support, market research, even new product concepts and prototype development. The ability of the vendor to provide these support services affects the manufacturer's choice of vendors.
The survey, which polled producers across the U.S. and Canada, was directed to those within a company most responsible for new product development and ingredient purchasing. The companies produce everything from appetizers and snacks to processed meats to nutritional products. Three-quarters of the respondents specifically are involved with Research and Development, with the balance evenly split between Purchasing and General Management; their responsibilities are heavily weighted toward formulation and new product development and the ability to influence ingredient specifications.