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Supply chain strategic value growing due to greater consumer control, Technomic says

Technomic released its latest report, State of the Foodservice Supply Chain 2014.

April 22, 2015

Technomic released its latest report, State of the Foodservice Supply Chain 2014, which claims the supply chain is growing in strategic value for all restaurant chains due to rapidly shifting consumer expectations, increasing food costs and supply and demand volatility.

The research reports a broader range of supply-chain capabilities with higher levels of supply-chain maturity. However, findings expose a paradigm shift in the definition of supply-chain maturity: The drive to success is no longer focused on cost, but on collaboration, agility and adaptability, the company said in a press release.

"Consumers are now more in control than ever before," said Bob Goldin, Technomic executive vice president, in a statement. "Not only do they want an increasingly customized selection of products, but they expect these foods and beverages made available to them faster and made of ingredients perceived as better. To succeed in this new environment, restaurant chains have to meet these challenges head on."

The State of the Foodservice Supply Chain 2014 utilizes the HGS Foodservice Supply Chain Maturity Model designed to establish an understanding of supply-chain capability within restaurant chain organizations. The model, developed by Technomic, aims to account for the unique complexities in the foodservice supply chain so that businesses may chart their progression.

Key insights include:

• The supply chain alone does not drive revenue, profit or growth, yet chains with more mature supply chains tend to have greater top-line performance;
• As the foodservice industry continues to ramp up innovation, collaboration among supply chain, culinary and marketing departments will be even more critical;
• Chains are not merely talking about greater supply-chain capabilities, but are actively bringing them about—leading to greater visibility, collaboration and the ability to be responsive and flexible.