What is the food service value chain and how does it play a part in getting the best grown foods into your stores and onto the tables of your customers? The value chain is a new system that is emerging in the food service industry to encourage collaboration between sellers and buyers rather than the pre-existing competitive approach. The value chain aims to encourage transparency and working together for all parties involved. After all, providing quality food for the customer is the priority and collaboration leads to providing the best goods to create a profit for producers and distributors. When the values surrounding the products are similar amongst producers and distributors, the success of the market is greater and more reliable. The value chain has proven to enhance marketing strategies within the food service industry, especially while facing some of the hardships that the Coronavirus pandemic has created.
Who Makes Up the Value Chain?
Similar to other food chains we have seen in the past, the food service value chain is a network between all the stakeholders who are in charge of growing, processing, and selling the food that consumers eat. The chain is composed of the people who literally bring the farm to the table. It is important that every person involved works together to bring the best value of foods to their consumers in assurance that they are putting out the best quality of their products as possible. There are quite a few links that make up the value chain:
- Producers: the people who research, grow, raise, and trade the products. They’re usually the farmers who harvest things like corn and raise cattle.
- Processors: these are the people who take the products and process and manufacture them for distribution; the people who make and package the flour and bread made from the producers’ ingredients.
- Distributors: these are the retailers that market and sell the food; where consumers go to purchase their food
- Consumers: all of the people who buy and then consume the food; you, me, and almost every other human being
- Lastly, non-governmental organization who monitor and regulate the value food chain and how its success rate when it comes to getting food from the producers to the consumers.
Each link in the chain requires that the link before them has done everything they can to produce the best products while being expected to do the same. If one piece of the chain doesn’t do their part, then they not only disrupt their business but the business of all the others involved in the process. When the values of the producers, processors, distributors, consumers, and governing bodies are all the same, quality products are produced, and the food service industry can continue to grow and flourish in a way that is beneficial to everyone involved.
Moving Forward with Momentum
Understanding how the food service value chain works and what it means for your business can be a heavy feat. It can be hard to take on by yourself, and at Momentum Sales and Marketing we can help you effectively utilize the value chain so that you connect with others that are going to help you provide the best foods for your customers. At Momentum, we have worked with all levels of the food service value chain and have developed unique expertise because of those interactions. We utilize the collaboration that stems from the value chain to help our clients get the most from their suppliers. Our consultants analyze and research who will be involved in a client’s value chain and establish the correct connections with the participants that will be the best fit. We can locate the proper producers, processors, distributors, and make contact with the governing bodies to establish a relationship for our clients so they get the best out of their partnerships. At Momentum, we want to help you understand the value chain so that you know what to expect from the relationships we build; no surprises.
Momentum Sales and Marketing, Your Choice For Food Service Consulting
Momentum Sales and Marketing is a Foodservice Consulting and Business Solutions Firm that will introduce you to a customized sales planning process that will help you reach your goals within the foodservice industry. Our goal is to help clients improve their profitability and refine their business performance so it is at its highest standard. You’ll always have access to our team with our On-Call Consulting platform because we want to help suppliers become the business that others want to do business with. Our dedication to integrity, leadership, and responsibility can help you get all the wins you aim for within the industry. All three of our partners have been a part of the industry for over a combined 100 years, and we only hope to expand our experience and knowledge while we help you navigate understanding your business, developing solid customer relationships, traveling along the value chain, and training those who are going to help further along your business. As the foodservice industry continues to evolve, we want to help you grow along with it.
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