Necessity may be the mother of invention, but inspired thinking is what drives innovation. Having said this, inspiration does not in and of itself guarantee that new ideas will come to life. Instead it’s an organization’s culture, the way it sees itself and the values it holds, which either limit or empower the curious to envision new products or novel ways to make use of existing technologies.
Always Moving Forward
As we work with our supply chain partners upstream and down, we have the immense privilege of witnessing how farmers, food processors and consumers in different parts of the world go about their day-to-day activities often with little realization of just how interconnected we all are. In seeing our role as more solution provided than vendor, innovation comes naturally to VLM. From helping to design new product concepts to integrating supply chain approaches to providing foreign business partners with pro-bono food safety regulatory consulting services, VLM has a well-established track record of innovation.
Working with partners in Ecuador, VLM successfully brought multicolor cauliflower and dry processed quinoa to market. Frozen acai cubes and unique low micro kale have also been very well received while our quinoa encrusted avocado is gaining a great deal of attention as well.
Colourful Products from Ecuador
Having said this, innovation is not merely about designing new products but also about employing different approaches to existing processes. USA Today recently reported on the rise of the grocerant which combines grocery stores with eateries offering fast and cheaper meal options than many traditional take out operators. Similarly, business news outlet CNBC recently opined on whether Walmart will beat Amazon in the looming online grocery wars. But why so much focus on innovating business processes?
There’s the obvious value of process changes yielding faster, better and cheaper outcomes but innovation in the food industry is about more than that. During his earnings report to investors in 2015, General Mills CEO Kendall Powell noted the success that much smaller companies have had in quickly bringing new and exciting products to market and that General Mills would be looking to emulate that inspired mindset as part of the cereal giant’s business strategy. More specifically, and as quoted by online publication FoodNavigator, Mr. Powell noted that smaller brands benefit from a great deal of consumer empathy because they are “Very, very, very close to the ultimate consumer…” which sees these companies highly responsive to consumer needs. Chartering a consumer focused course, General Mills has followed up with changing recipe’s to reflect consumer desires for greater gluten free products and the reduction of artificial colors and flavors from products geared to children. Additionally, a focus on consumer convenience drove supply chain changes towards bringing a broader range of snack items to convenience store shelves.
Trusted Consulting
VLM is not General Mills and we do not currently have our own consumer facing brand but we are just as focused on our clients and their needs, both upstream and down. Our upstream clients, our suppliers, have come to appreciate the pro-bono consulting services we provide. As part of our value proposition in paying our suppliers fair prices for their products, VLM’s in-house food safety and regulatory team evaluates potential regulatory risks which may impact the access our suppliers have to the markets we serve. When looking to invest in product lines it is not uncommon for our suppliers to seek out our advice on whether or not there is a market for the new product as well as our opinion on their potential financial, business, supply and regulatory risks. Clearly our relationships with our upstream clients differs significantly from more traditional buyer-seller transactions.
Brand Protection
As for our downstream clients, our customers, we have been honored by being entrusting with not only helping to protect their bottom lines but their brands and businesses as well. In spotting interesting items in foreign markets and repurposing them for our clients’ markets, we have built a solid reputation of creating additional value for our customers. After all, our business isn’t only about delivering the right product at the right price and on time to the right place, but helping our customers to flourish.
At VLM we have many new and exciting projects percolating…stay tuned and stay inspired.
