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Relationships Between Food Manufacturers and Retailers and Possible Implications for Training

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Relationships Between Food Manufacturers and Retailers and Possible Implications for Training DOCUMENT RESUME ED 398 433 CE 072 310 AUTHOR King, Richard; Kruse, Wilfried TITLE Relationships between Food Manufacturers and Retailers and Possible Implications for Training. INSTITUTION European Centre for the Development of Vocational Training, Thessaloniki (Greece). REPORT NO ISBN-92-827-6429-X PUB DATE 96 NOTE 43p. AVAILABLE FROMUNIPUB, 4611-F Assembly Drive, Lanham, MD 20706-4391; 800-274-4888; fax: 301-459-0056 (Catalogue No. HX-93-96-572-EN-C: 5.50 European Currency Units). PUB TYPE Reports Research/Technical (143) EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS Adult Education; *Food Processing Occupations; Food Service; *Food Standards; Foreign Countries; *Institutional Cooperation; Postsecondary Education; *Quality Control; *Retailing; Secondary Education; Vocational Education IDENTIFIERS *Germany; Netherlands; Spain; *United Kingdom ABSTRACT A pilot study examined the relationship between the retail sector and food and beverages industries and their implications for training. A range of case studies were undertaken in food manufacturing and retailing enterprises in the United Kingdom (UK) and Germany. The UKcase studies examined the problems of manufacturers, both small and large, supplying large retailers; the perspective of a large retailer; and the franchiser-franchisee relationship and problems of supplying the catering sector. Participants in the UK case studies were a meat processor, fast food restaurant, supermarket, and liquid milk producer. Even without long term commitments between retailers and manufacturers, the system worked to give some degree of stability. Pressure was placedon the manufacturer to be innovative and responsive. The other vital ingredient was the commitment to quality. Participants in the German case studies were a delicatessen, health food cooperative, and large manufacturers of fresh milk products. Quality standards were set by the retailers; there was no regular communication on products, product innovation and quality, or prices. Findings from these studies and other sources indicated the dynamic and competitive nature of the food supply chain had resulted in quality beinga dominant issue in the interrelationships between the sectors. Common training activities were proposed to help all employees understand their specific role in the quality chain. (YLB) *********************************************************************** Reproductions supplied by EDRS are the best that can be made * from the original document. *********************************************************************** Re s h sb'-:t en 00 M ad manufactuntrs a colod-orsand possU R.D. King and W. Kruse IA catfir rtralno ,41 t<tl +41 e 5 Sly tiO ma. Yin.... q II DEPARTMENT EDUCATION OfiCeSof DEduPcAaFtoinlialResearch Improvement "PERMISSION TO REPRODUCE THIS BEST COPY AVAILABLE,EDUCATIONAL RESOURCES INFORMATION MATERIAL HAS BEEN GRANTED BY ciCENTER (ERIC) This document has been reproduced as .. received from the person or organization ., originating it. Minor changes have been made to improve reproduction quality. 4e=, ft= 911=3 IF=ifTh e==1 tr=a -'44bj 4 Points of view or opinions stated in this TO THE EDUCATIONAL RESOURCES document do not necessarily represent INFORMATION CENTER (ERIC)." official OERI position or policy. 2. RELATIONSHIPS BETWEEN FOOD MANUFACTURERSAND RETAILERS AND POSSIBLE IMPLICATIONS FOR TRAINING Richard King Department of Food Science & Technology The University of Reading Whiteknights, Reading RG5 2AP UK Wilfried Kruse Sozialforschungsstelle Dortmund Landesinstitut. Sfs Rheinlanddamm 19 D-44135 Dortmund November 1994 First edition, Thessalonica 1996 Published by: CEDEFOP European Centre for the Development of Vocational Training Marinou Antypa 12 GR-57001 Thessalonica (Thermi) Tel.: 30-31 + 49 01 11 Fax: 30-31 + 49 01 02 The Centre was established by Regulation (EEC) No 337/75 of theCouncil of the European Communities, last amended by Council Regulation (EC) No 25-1/95of 6 February 1995 and Council Regulation (EC) No 354/95 of 20 February 1995. BEST COPY AVAILABLE 3 Cataloguing data can be found at the end of this publication. Luxembourg: Office for Official Publications of the European Communities, 1996 ISBN 92-827-6429-X © ECSC-EC-EAEC, BrusselsLuxembourg, 1996 Reproduction is authorized, except for commercial purposes, provided the source is acknowledged. Printed in Germany FOREWORD FOREWORD rity, safety and high standards of quality. This could have meant intensive collaborationin This publication isa pilot study of the relation- training issues not only for each sectorsepa- ships between the retail sector and food and rately as is the case now, but for both jointly. beverages industries and their implications for training. Our findings, despite the limited number of seven case studies analysed in only two Both sectors have already been analyzed in Member States, seem to coincide with those of other CEDEFOP work, particularly in the FORCE major research, that is to say that collaboration sectoral surveys on in training. The knowledge in training matters between retailers andmanu- thus gained has permittedus to initiate this facturers is very limited and that relationships empirical study on a subject of which there is between them range from systematicto occa- insufficient knowledge. sional, from short to long term, fromtrust to total control. The reader will find at the end of the studya presentation of other recent studies from the inter- Finally it seems that the size of the firm, eitherin national bibliographyon the interactions retail or in manufacturing, and itspositioning in between Food Retailers and Manufacturers, the market are the decisive factors shaping the which confirm and reinforceour own findings. relationships between parties. The sectors, one upstream and the other down- But recent developments inconsumer demand stream, have always had contacts and some for fresher and better quality food,in the form of collaboration but it is only inrecent European legislation on health andconsumer years that European food manufacturing has protection, in management and in information been influenced by the purchasing allianceson technology give support to the adoption of the one hand and the food retail by the increas- reciprocal trainingmeasures. ing concentration of the food industry, on the other. The reader will findsome proposals in the con- clusions. Effort has been made to analyseas Another reason for having chosen foodmanu- many types of relationships, subsectors and facturing and food retailing is thenature of food organizational structures as possible within the itself which is perishable and requiresproper time and budget limits we had. handling in production and sales tosecure integ- 5 FOREWORD Findings on United Kingdom and Germany We would also like to thank the two researchers have been supplemented by information on the Dr. Richard King of the Department of Food Netherlands and Spain and data of the FORCE Science and Technology of the University of surveys. Reading and Dr. Wilfried Kruse of the Sozial- forschungsstelle Dortmund for their commitment. We would like to thank the seven enterprises which were kind enough to take part in the Finally we would like to thank in particular the research, even though we decided not to pub- European Social Partners of both sectors and lish their names. their representatives with whomwe have infor- mally discussed the findings of the study. Enrique Retuerto Tina Bertzeletou Deputy director Project Coordinator 2 RELATIONSHIPS BETWEEN FOOD MANUFACTURERS AND RETAILERS AND POSSIBLE IMPLICATIONS FOR TRAINING Richard King Wilfried Kruse Department of Food Science and Sozialforschungsstelle Dortmund Technology Landesinstitut. sfs The University of Reading Rheinlanddamm 19 Whiteknights Dortmund Reading D 44135 UK RG6 2AP November 1994 7 3 1 BACKGROUND TO THE STUDY 1.1 INTRODUCTION retailers in the food sectorare trying to offer better quality of service and fresher productsat Two surveys have been undertaken by the Task more competitive prices. Company image is Force Human Resources and CEDEFOPon com- considered an important factor in marketing, pany training policy, one in the retail' and the often directed at developing customer loyalty. other in the food and beverage sector2. From A further factor specific to the food retailersis these it was clear that therewere strong links the increasing customerawareness and political between the two sectors. The nature of these importance of hygiene and food safety, which links was usually poorly described, and insome is manifested in the EU Food Hygiene Direc- country reports there was the implication that the tive3. These issues often bringa desire or need relations between the sectorswere poor. It was for a change in sales strategies and behaviour, clear that the retailers were having to respond to introducing newpressures and topics to a their customers aswere the manufacturers to company's training policy. Reaction to the theirs. That the manufacturerswere having to situation was seen more in the larger retail respond suggests that links exist that could have companies. a direct influence on training in the manufactur- ing enterprise. This project aims to examine in All employees, including part-timers,are the more detail the relationship between the sectors target for this new emphasis on training. A and how the business requirements of one might widespread trend among retail firms is to inter- affect the other. nalize training, a practice which isconsistent with the conception of trainingas
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