In the food industry, where competition is intense, and consumer preferences are constantly changing, having a food broker is critical for manufacturers looking to succeed and expand. But why are these intermediaries key players in the food supply chain?
The importance of a food broker
These agents act as middlemen in different stages that take place between several food companies long before reaching the final consumer (Food Standards Agency, 2021). That is, after food production.
Specifically, the value of having a intermediary lies in:
- First: its ability to facilitate the marketing and distribution of food products. This can be both in reverse logistics and supplier management.
- Second: it allows those responsible for food manufacturing to focus on production.
- Third: it maximizes the visibility and sales of products in the marketplace.
For this reason, their role is critical to achieving success in the food supply chain.
Benefits of these intermediaries
Some advantages of having a food broker are the following:
- They have a wide range of connections in the food industry, which gives them access to a variety of retailers and distribution channels.
- Also, they have a deep understanding of the market, ranging from consumer trends to regulatory requirements to optimal marketing and promotional strategies.
- They develop customized promotional and marketing plans for their clients’ products.
- Besides, they control and influence the quality of the products they manage and market (QA QC).
- They are responsible for maintaining strong and ongoing relationships with retailers on behalf of manufacturers.
What characteristics to look for in a food broker?
To choose the best and maximize results, you should prioritize:
- Their experience and strong relationships in the food industry facilitate access to markets and effective distribution. Therefore, it should be someone from whom you can obtain good references.
- You should also look for someone who understands market trends. This way, they will know how to tailor product-specific sales and promotion strategies.
- Select a broker with negotiation skills to secure favorable terms with retailers.
- Work together to develop a promotional plan to increase product visibility and sales. Therefore, they must be transparent in their communication with whoever hires them.
Some key tips to improve the relationship with middlemen are:
- Communicate goals and responsibilities upfront.
- Draft a contract that specifies terms and responsibilities.
- Maintain an ongoing dialogue for effective collaboration.
- Monitor performance and adjust strategy as needed.
- Provide relevant data for informed decision-making.
- Provide regular updates and training on products and strategies.
- Adapt your expectations to the shifting market conditions.
- Regularly analyze ROI to make informed decisions.
In conclusion, it is critical to recognize the importance of collaborating effectively with a food broker. This requires setting defined expectations, fostering open communication and monitoring performance. So, make the most of these tips to enhance your business success in the food industry.
Bibliographic References
- Total Food Service. (2023, 13 de mayo). The Essential Role of Food Brokers in the Foodservice Industry. Total Food Service.
- Food Standars Agency. (2021, 3 de marzo). Food law.
- In Vanguardia Store. (2022, 28 de julio). What Impact Does A Food Broker Have On A Company?
