Food and beverage brands that cut through the noise and boost market share are invariably better at understanding just one key thing - their customers - according to Lean solutions expert, Tim McLean.
Most food manufacturers view Lean as a technique to reduce costs, according to McLean, but greater value can be delivered when Lean thinking is aimed at delivering greater value to customers more effectively.
This customer-led approach goes is crucial for success, yet it goes against the grain for many traditional food and beverage and packaging manufacturers, says McLean, managing director of TXM Lean Solutions, who is presenting at the Food & Drink Business + PKN Disruptive Innovation LIVE Industry Forum in August.
“Retailers want more variance, shorter lead times, more promotions, and yet they still want you to keep the price down. They want more but they are not prepared to pay more.”
Many food and beverage companies, in response, have become defensive, he says. One of the problems is that many have moved to a technology-driven ERP-based supply chain approach, and as a result are reliant on good forecasts in order to plan their production.
McLean says, however, that all the automation in the world won’t save a company that has lost sight of the front end.
“The customer is never the problem. The customer is always right,” says McLean.“If you can’t deal with the way they are operating, you need to change the way you are operating – or find a new customer.”
He says a failure to appreciate this was responsible for the demise of Australia's car manufacturing industry.
“The local car industry didn't notice that Australians wanted different cars. It closed not because of the cost of manufacturing but because it wasn’t making the cars that customers wanted.”
“When the customer you want to do business wants something you don’t want to offer, you are in a dangerous place,” he says.
Knowing what your customer wants should instead be empowering, according to McLean.
“Once you know what your customer really wants, then you can can use your Lean to design your processes to match that.”
McLean will be outlining some key strategies to achieve this at the LIVE industry forum, powered by Food & Drink Business and PKN, on Thursday 13 August at Royal Randwick Racecourse, Sydney.
To find out more or to book tickets click here.
