The Specialist Partnership...
"Bradbury & Son, were amongst those that emerged as
part of this consolidated supply route for retailers."
The role of the wholesaler distributor in the cheese supply chain is often under rated by both small maker and retailer.
A role that developed regionally in the early 1900’s and later nationally when transport, stockholding, seasonal cheese making and the huge number of retail outlets posed some entirely different challenges.
Bradbury & Son, were amongst those that emerged as part of this consolidated supply route for retailers, being one of the true original cheese factors, a highly trusted role that was closely connected to the dairy farmer. From the beginnings, in 1884, the founder, the reverend William John Bradbury, was distributing by rail from Buxton to the London clubs in Pall Mall and Regents Street, by 1912.
Clearly, in those times, the range of cheese was much smaller, and the distributor/wholesaler visited cheese making sites regularly, selecting out the best cheese, negotiating prices and frequently raising the cheese to maturity, building in that process, a reputation for quality, service and expertise.
1939-45: the loss of specialism
The two wars and food rationing changed much of the pattern of distribution and the role of wholesalers, restricting as it did, food distribution to strict areas, controlling prices and supply, before its end in 1952. It took another 20 years before our own Company again supplied the London market
Moreover, the war years (1939-45) saw the loss of more than 500 unique and different small cheese types, as the Ministry of Food demanded the making of long life cheese, ultimately a great benefit for Cheddar, whose market share increased substantially beyond pre-war levels.
Changes in communication, the development of the road network and the growth of Continental imports, all extended the opportunity for the wholesaler and distributor.
In contrast however, by the early 80’s the steady stream of retail shops being lost to the march of the major supermarkets meant many famous names in cheese distribution folded or amalgamated, and others stretched into allied food products such as charcuterie, olive oil, meats and later olives, few remained totally dedicated to cheese only.
The scale of change saw 27,000 retail outlets lost between 1985 and 2005, and this coincided with the growth of Prepack cheese with the consequence that the sale of cheese in a loose deli format fell from 27% in 1987 to around 10% in 2007 (TNS data).
The cycle of specialist cheese regeneration probably began in the mid 80’s with a combination of the re-birth of many British regional cheeses and the rapid growth of fine Continental cheese. This was followed later by the steady growth of specialist cheese shops, farm shops and farmers markets, creating a new role of partnership for wholesaler and retailer.
Cheese distribution has split into specialist and core. The business of conventional mild cheddar and the sometimes variable pedigree of mature cheddar, as well as a limited range of the main stream cheese types are avidly fought over by a whole range of local distributors, van sales operations, plus cash and carry and others, usually on a price basis alone.
Beyond that, there has emerged national and regional cheese distribution specialists, more truly focussed on stocking fine cheese, to having an instock approach, providing prompt and reliable service and providing support for both retailer and food service outlets.
"Building a relationship with a professional and dependable
speciality distributor is worthwhile and mutually beneficial."
So why not source direct from the makers?
The question is valid, and in some cases is necessary and right. For the most part however, the wholesaler/distributor provides an important switching point in the supply chain, often holding 400-700 different British and Continental cheese available with a simple phone call.
The task of source managing a range of 50-60 cheese involves a huge investment of time on a daily and weekly basis, plus minimum stocks, transport, paperwork and much much more. Building a relationship with a professional and dependable speciality distributor is worthwhile and mutually beneficial.
Expectations
It surely begins with what each party in the supply chain expects from a trading relationship of this type. In giving up a myriad of sourcing requirements the retailer abdicates much to the supplier. In turn it permits the retailer to concentrate on what they should be best at, serving the shopper well, leading the staff, displaying the produce and simply managing the business. By close association with the distributor and members of their staff the retailer should be able to elicit all the information they require, about product, life span, experience about its sales performance, selling price guide, and even samples and promotion material.
Responsibility
A single delivery of 60-70 different cheese, cuts down on paperwork, ordering and follow up procedures, cash tied up in stockholding, it improves freshness (where that’s relevant) and may be a cash flow benefit.
As with any benefit, there comes a responsibility and a good wholesaler/distributor similarly needs to meet their part of this compact with the retailer. Amongst these are commitments to service and stockholding, to consistent quality and maximum life expectation and to a knowledge about the products that are sold.
In the nature of speciality items the produce is small volume, and can occasionally have supply challenges. The handling of this matter probably says most about service commitment, and paramount amongst these is telling the customer when something is not available, not at the moment of delivery. Experience shows this is the single most irritating issue for a retailer, as it denies them an opportunity to source elsewhere or find an alternative cheese.
Choice
Many retailers do have choices, competition in the specialist sector, as elsewhere in the food chain, remains tough and unrelenting. Service and reliability have an allied cost in, maintaining stocks, handling waste that arises from high instock levels, providing prompt delivery and much more. There have been new entrants in this market both regional and national and competition should always be an incentive, even to established businesses, to keep performance high. The retailer however, needs to be sure to compare like with like, it is easy to offer low prices on lines not delivered, or to break the rules on coding and life span. Full traceability and food security is as much for the retailers benefit as anyone’s and whether we like it or agree with it, it is the law and is part of our trade protection. So beware the mavericks!
Lead the customer
A typical retailer handles 50-60 lines; a distributor may handle 10 times that, and supply 500+ outlets, just think of the knowledge stored up there. Our own telesales team admit that less than 1 in a 100 ever ask what is doing well, new or performing elsewhere.
Additionally, the exciting growth of local cheese, and the arrival of new ones accelerate the role of the wholesaler in being the provider of new information to the retailer, so for both parties, some conversation time and some asking of relevant questions can provide new opportunities.
Passion and knowledge about the cheese being offered by the distributor is surely a non negotiable part of the trading compact. With so many to know and new ones arriving, the occasional gap may be forgivable, but persistent lack of understanding probably means the retailer has the wrong supplier.
Retailers have a great opportunity to lead and inform the customer and most owner managed retailers do this very well, helping their regular customer discover new tastes and new sensations.
Everyone should recall what the established customer motivations are when shoppers choose to buy cheese from the deli. Its about buying a treat, a luxury an indulgence, its about a perception of quality and freshness, its about buying the right size, its about local and provenance, its about the opportunity to try before you buy, and its about that special personal contact that specialists alone these days have a virtual monopoly on. It is hardly ever about low price.
We are in a world of expert advice, what car, what holiday, which wine. The cheese retailer enjoys with many of their clients a trust in product advice that is not always fully utilised. A customer finding a new cheese sensation at the recommendation of his/her cheese retailer is probably more effective than an advert in the local paper.
"Valuing time needs to be recognised to maximise profitability."
Valuing Time
The theory of retail is simple; the actual operation is highly skilled. At its base however are several basic principles, namely sourcing of product, distribution and delivery, and then display and sale. For most owner Managers the main skill set is in last two elements: the display and sale. It is here that most benefit is gained to maximise margins in limited time.
The wholesaler/distributor can do a large part of the first two elements of the retail process, and based on their scale, can generally do it at much lower cost. Valuing time needs to be recognised to maximise profitability.
Mutual Respect
So how can the retailer and wholesaler continue to forge a strong partnership that benefits everyone, especially the consumer?
It begins with a mutual respect and appreciation of the two contrasting roles and the very real skills and passion that go into both.
It is about a clear understanding of the part each plays to serve that customer.
From experience, as in virtually all aspects of trade, it’s about lack of communication, misunderstandings, misplaced expectations and presumptions usually in equal measure from both sides.
From the retailer, all should know that the consumer can be highly demanding, but that must not be allowed to spill over into a retailer v wholesaler blame game. If the retailer has knowledge of a need for a product, something special, don’t wait …..advise the supplier today, by phone, fax, e mail or text. No one can act on what they don’t know.
From the supplier side, if disaster strikes and supply is in anyway compromised tell the retailer without delay. It is not a fault, it’s a reality, and it’s really about doing whats right for the customer and the consumer.
Equally an understanding that the distributive trade frequently orders 2-3 or even 4 weeks ahead of sales demand, especially with our Continental cousins, and the short code v out of stock dilemma is very real and very costly and needs to be appreciated too.
Top Tips
So what are the top tips that create the best trading relationships for retailer and wholesaler?
- If something is needed, and it’s known in advance, say it and say it often. It’s the best way to ensure availability
- Out of stock….the single biggest cause of unhappiness in the business relationship. Understand the replacement process, but expect the distributor to tell this matter before day of delivery.
- Value the relationship…mutual respect as opposed to hostility in failure or apathy in response. Specialist retailers and specialist distributors are a limited breed and good relationships are vital to mutual success
- Share knowledge…the retailer has valuable customer insights, the wholesaler has new news, new opportunities to relay
- Both sides need to deal with issues quickly and openly, whether its credit notes, disputes, or information needed. Credit, for example, is the highest form of trust, and payment is a key guide to meeting that trust.
- Respect every person in the conversation chain, staff whether at retailer or wholesale side are simply doing a job, most people respond to calls to be helped better than sharp words.
- Applaud success…if either side has great news of achievements in pleasing customers with great products, share it. It’s the best incentive to want to do it again.
- Talk about the troubles. In commercial partnerships, excess stock, cash flow, quality issues, poor performance, competitive threats are amongst daily realities, which if openly tackled, can make the relationship stronger not weaker. Someone talking about matters is surely someone trying to resolve them.
- Think about the pressure times. Christmas and Easter are the major trading times, and are well known, if the responsibility to plan these is not shared, then issues will almost certainly arise.
- Trust in what each of the parties does, not what they just say they will do. A relationship of success will be built on mutual delivery of what is expected. If change is needed, then make it. It will create new opportunity, or galvanise either party into recognition of the value of the other, and improvements should follow.
- Profitable and sustainable business is the objective of the holistic relationship between distributor and retailer.
A partnership of equals
The wholesaler is negotiator of the commercial offer, the sourcing partner, and the supply chain operator, and efficient Companies should be able to achieve this, provide high instock levels, a great flow of product information, a wide range, planned delivery and at low cost.
The retailer is customer focussed, meeting their current needs, creating future demand and shopper satisfaction, maximising sales value and quality offer to bring them back again and again, achieving a realistic return in this higher cost environment.
If the roles are fully played, understood, and respected the partnership for success should create mutual commercial success.
George Paul Managing Director Bradbury and Son
