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Seamless CollaborationReducing Friction in Supplier and Manufacturer Interactions

Table of ContentsIntroduction .......................................................3The Complicated Maze of Supplier-Manufacturer Interactions ..................4Supplier-Manufacturer Process Overview ........ 5 Challenges and Solutions .................................6Harnessing the Power of Digital to Meet Modern Challenges ..................8Recipes & Specications: A Purpose-built Tool for Food and Beverage ...9

3Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsFoodChain ID values the insights our customers provide into the critical challenges food and beverage industry professionals face each day. Where our customers see a barrier, we see an opportunity to provide purpose-built solutions and expertise that empower innovation and meet the unique and evolving needs of the industry.Supplier interaction and management processes are pivotal to operations but can be complex and time-consuming, marked by duplicative manual work, the use of multiple systems for communication and management, and a lack of direct collaboration and data sharing between stakeholders. In the current landscape, regulatory standards are stringent and the needs for supply chain agility and business resilience are at an all-time high. Traditional processes are no longer appropriate to facilitate this dynamic and intricate journey.Food industry professionals need solutions that accelerate collaboration, standardization, automation and tracking not only throughout the supplier management process, but that encompass the entire New Product Development (NPD) process. Streamlining these interactions is not just benecial but essential for maintaining a competitive edge, ensuring product integrity, and achieving timely market delivery.We conducted an analysis with our customers to gauge the main barriers to supplier collaboration and communication in 2022. The survey involved in-depth phone interviews and questionnaires completed by 11 key industry customers, in addition to the analysis of current and historical customer data and customer journeys.This paper will review the learnings from our analysis, including the main pain points in supplier management and how we’ve applied this information to ne-tune our solutions and empower our customers to enhance their processes.According to our analysis, the average time to complete the process of receiving a new raw material specication to the nal approval stands at 6 to 12 weeks. This process is marked by several inefciencies shown in detail on the next page. The owchart underscores several pain points that signal inefciencies and delays in the process. These issues not only prolong the process but also increase costs and reduce market responsiveness.By dissecting these issues and proposing strategic improvements, such as the integration of automation and streamlined communication processes, this paper aims to offer actionable solutions to reduce process time and enhance overall efciency.

4Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsImport Specification to R&SNeed to chase SupplierProcurement Manager Sends Supplier email to complete specificationSupplier submits/resubmits SpecificationHead of Regulatory receives notification from Supplier with SpecificationAverage Length of time to complete process = 6-12 weeksStage 1Receiving initial RM SpeculationSupplier actionschanges requiredAmendments Email sentthrough email to SupplierCreate a draft RMin Formation with some info (based on a paper copy containing the basics from the supplier).Lengthy email devised regarding omissionsRegulatory Review 1Regulatory Review 2Stage 2Amending the SpecificationStage 3Reviewing the SpecificationStage 4Approving the SpecificationReview the ReviewReview the ReviewReview the ReviewApproved specification sent for reviewRegulatory ReviewTechnical ReviewProcurement Review 1May need to go back to Supplier and start process againApproved RMEmail ChaseEmail ChaseEmail ChaseContinuously chasing reviewersEmail / phone call to Supplier to adviseUpdate External TrackerNo Groupemail automationxSupplier pain - need to Reject/Draft/Review/Approve before resendingMay require several email resubmission cyclesNew RM created earlier (Training issue?)Not ApprovedStage 1Receiving initial RM SpecificationStage 2Amending the SpecificationStage 3Reviewing the SpecificationStage 4Approving the SpecificationAverage Length of time to complete process = 6-12 weeksThe owchart illustrates the systematic journey from receiving initial raw material (RM) specications to nal approval, highlighting the necessity of a seamless process. In the current fast-moving commercial environment, the ability to efciently manage these interactions is crucial for sustaining a competitive edge and guaranteeing product quality and timely delivery.

5Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsStage 1: Receiving Initial RM SpecicationThis stage outlines the initiation of the process, where a draft RM form is created. It involves procurement review and supplier summary, leading to a potential need to respond to the supplier. Key roles are played by procurement and regulatory heads, emphasizing the necessity for precise communication to avoid delays.Stage 2: Amending the SpecicationA more complex stage where the specication is amended, often requiring cross-departmental involvement from Regulatory, Procurement, and Technical teams. The circular chart suggests a non-linear process with feedback loops that may cause delays if new issues are identied, requiring further amendments.Stage 3: Reviewing the SpecicationIn this phase, the specication undergoes reviews from various departments, with email chases indicating a potential need for re-testing and further amendments. This step is crucial as it often dictates the readiness of the specication for approval and highlights the iterative nature of the process.Stage 4: Approving the SpecicationThe nal stage involves the approval of the RM, followed by communication with the supplier and updating external trackers. This stage is pivotal as it concludes the interaction process and determines the readiness for production or service delivery.Process Overview

6Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsChallenges and SolutionsThe process inefciencies identied in the owchart pose signicant challenges that can be addressed through purpose-built solutions for food industry professionals. This section explores how leveraging digital functionalities can help overcome these challenges and enhance the overall New Product Development (NPD) process.Leveraging AutomationChallenge: Manual processes are inherently slow and prone to error, leading to repetitive tasks, data entry mistakes, and a subsequent increase in cycle times for completing the supplier interaction process.Solution: Implementing automation tools across the stages of the supplier management process and throughout NPD can bring about Automation strategies can expedite the process, improve accuracy, and free up valuable resources to focus on more strategic tasks.Aspect Benet DescriptionAutomated Form Filling and SubmissionEfciency in ComplianceSoftware that automatically lls RM forms ensures that all necessary information is accurately captured, reducing the risk of human error and non-compliance.Automated Form Filling and SubmissionSpeed to Market Faster form processing means that products can move more swiftly from concept to market, crucial for perishable goods. Utilizing software that auto-lls RM forms with pre-existing data can reduce the time spent on creating initial drafts and avoid human errors.Workow AutomationConsistency in Quality ControlAutomated routing of documents for approval can standardize quality checks, ensuring each product batch meets the required standards.Workow AutomationResponsive Supply ChainA system that can quickly identify and ag affected products is crucial for consumer safety and brand reputation. Deploying systems that automatically route documents for approval, ag necessary revisions, and notify relevant parties can streamline the amendment and review phases.Real-Time Data SharingSupply Chain VisibilityA cloud-based platform offers real-time visibility into the status of raw materials and inventory levels, critical for managing shelf life and expiration dates. Integrating a cloud-based platform where all stakeholders have access to live updates and documentation can minimize the need for back-and-forth communication.Real-Time Data SharingCollaborative InnovationManufacturers can collaborate more closely with suppliers to innovate and improve product quality, responding more effectively to consumer trends.Automated Tracking and AlertsProactive Issue ResolutionAutomated alerts can identify and address potential issues before they affect production, reducing the risk of delays or stoppages.Automated Tracking and AlertsEnhanced TraceabilityTracking systems monitor the movement and quality of ingredients, ensuring traceability essential for food safety and compliance. Setting up automated trackers that update all parties on the status of the RM and trigger alerts when actions are required can prevent delays.

7Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsChallenges and Solutions Single Source of Truth: Leveraging a single solution to manage the key requirements of NPD establishes a central hub for current and historical data to reside.Increased Agility: Integrating and automating functionalities reduces friction when modications to ingredients, suppliers or recipes are required.Proactive Monitoring: Integrating critical NPD data within a single source enables proactive monitoring of risks and blockers throughout the process.Optimizing Processes with Data: The ability to track current and historical data, feedback and performance metrics allows companies to pinpoint recurring barriers in the process and fosters a culture of continuous improvement.Centralized Communication: Adopting a single platform for all communication related to the supplier interaction process can reduce confusion and ensure that all stakeholders are informed simultaneously.Standardized Processes: Leveraging digital tools can standardize and streamline supplier processes, such as online form submission and automated compliance checks and reminders, establishing a clear and transparent process for both customers and suppliers.Documentation and Tracking: Ensuring current and historical data including amendments and reviews are well-documented and accessible to all stakeholders can prevent misunderstandings and repetitive discussions.Role-Specic Notications: Tools that enable role-specic alerts ensure the right individuals are notied of updates throughout the process.With integration, businesses can not only improve supplier interactions by establishing a clear, accessible and streamlined journey, they can revolutionize their entire NPD process, streamlining innovation and offering a competitive edge.Streamlining Collaboration Challenge: The owchart suggests a lack of clear and efcient communication, which can lead to signicant delays in the NPD process.Solution: Streamlining communication involves a multi-faceted approachIntegrating NPD Processes Challenge: Supplier management is just one step of the NPD process. Managing suppliers and ingredient specications, developing recipes, and creating product specications and labels are interconnected tasks that can be time-consuming to manage without the right tools and tracking.Solution: Leveraging purpose-built solutions to integrate critical aspects of the NPD process:These steps can drastically cut down the time spent on communication and make the process more transparent and efcient.

8Seamless Collaboration: Reducing Friction in Supplier and Manufacturer InteractionsIn the food manufacturing industry, where the stakes are high and the margins for error are narrow, implementing automation in supplier management can offer substantial benets. Use of purpose-built digital tools help to streamline processes, reduce costs, and improve market reactivity.The implementation of automation tools stands out as a pivotal upgrade for businesses looking to modernize their operations. By adopting automat-ed form lling and submission, workow automa-tion, real-time data sharing, and automated track-ing and alerts, companies can expect a signicant reduction in the time spent on manual data entry, an increase in data accuracy, and a more efcient overall process. The benet extends beyond mere time savings; it promises a revolution in the way information ows through the supply chain, ensur-ing that every stakeholder has access to the most current data at their ngertips, allowing for faster and more informed decision-making.Centralizing communication and integrating NPD processes are equally important. These strategies are not just about cutting down on the number of emails sent or meetings held; they are about creating a seamless, responsive workow where each step is clear, necessary, and value-add-ing. These enhancements can lead to a more dynamic supply chain capable of adapting to the fast-changing demands of the market and the regulatory landscape.These improvements are not just internal ben-ets but also directly affect the end consumer. Increased safety and quality, better product availability, more informed choices, and faster innovation are just a few of the customer-centric advantages that can arise from optimizing the customer-supplier interaction process. This not only reinforces consumer trust but also positions a business as a leader in operational excellence and customer satisfaction.The recommendations provided are not just the-oretical ideals; they are practical, tested solutions that are in alignment with the industry’s move towards digitalization and lean operations. By em-bracing these changes, businesses can anticipate not only a more streamlined and cost-effective operation but also a stronger, more resilient posi-tion in the marketplace. As the industry continues to evolve, those who act swiftly and strategically to rene their customer-supplier interaction process-es will undoubtedly be the ones to lead and thrive in the future.The call to action is clear: Businesses must now take a decisive step towards the implementation of these solutions. The time to transform the supplier management process is not just imminent—it is imperative.

® FoodChain ID 2024To learn more on services that protect brand reputation, visit foodchainid.comReferencesSource: Reference Program - Supplier Specification Collaboration Discovery Phase 1 Report Author: Natalie Walker - Product Manager, FoodChain ID Date Prepared: 02/04/2022Discover the essential Product Lifecycle Management (PLM) system purpose-built for food and beverageHandling the complexities of product development is challenging and time-consuming if you don’t have the right tools. FoodChain ID’s Recipes & Specications provides an end-to-end capability that manages specications, recipe development, labeling, compliance and syndication to other key systems.Recipes & Specications provides a single source of truth for innovation and compliance and acts as a collaboration hub for internal teams, supply chain partners, and your customers.AUTOMATION: • Renewal reminders and certication expirationwarnings keep information up to date.• Develop recipes and watch every change madedynamically update nutrition, cost and allergeninformation in real-time.• Create product specications and labels for relevantmarkets that update in line with recipe changes.COLLABORATION: • Collaboratively manage supplier informationand ingredient specications online in astandardized format.• Provides a single solution for customer-suppliercommunications, with functionalities for role-specic notications.INTEGRATION: • Recipes & Specications is a single source forNPD, providing a trusted hub to collaborate withstakeholders, generate, review and approvedocumentation, and store and track critical dataabout product development processes.• Syndication to other key systems enablesstreamlined management of the entireproduct cycle.We have these functionalities in the product today, but for an early review of phase two of our supplier collaboration upgrades, please contact us to discuss sandbox environments.What Our Customers Say:With advanced search, for what would have taken half a day, we now can do in minutes. I have not had to increase head count because of the time savings gained due to Recipes & Specications— Julie, Head of Regulatory, QuornLearn more about FoodChain ID’s Recipes & Specications System