A featured contribution from Leadership Perspectives: a curated forum reserved for leaders nominated by our subscribers and vetted by our Manufacturing Outlook APAC Advisory Board.



What was your previous experience in the pet food industry? What are your responsibilities and roles at BARK?
BARK, a start-up that went public last year, is shifting its focus from solely selling dog toys to becoming a holistic dog company that prioritizes providing enjoyable and nutritious food for its customers’ pets. Two years ago, after my 29-year career at Mars in the pet food industry, the company hired me to establish an R&D team to develop a range of consumable products for dogs, including dog food, treats, dental products, supplements, and health-related items. Recently, I also took on the responsibility of managing the sourcing function for these products. Over the past eight months, I have revamped our supply strategy by replacing multiple transactional suppliers with a portfolio of strategic partnerships.
How should companies present their needs, and what should they consider when choosing a portfolio for a contract manufacturer?
It’s crucial to begin by identifying your company’s specific requirements, such as customer value, skills, and capabilities. This can be achieved by analyzing both present and future external market needs and understanding the company’s role in the industry and how they cater to its customers. A helpful tool for achieving this is the OGSM process, which outlines objectives, goals, strategies, and measurement processes to align the company toward its desired direction.
Why is deciding the quality and consistency of supplier assessment crucial?
To effectively assess potential suppliers within your industry, creating a map of the supplier landscape and identifying all relevant suppliers in the desired areas is recommended, especially if you require multiple technologies. Quality and consistency are critical factors as they can impact your company and brand reputation. It’s essential to ensure that your supplier comprehends your quality standards during selection. Depending on your industry and specific requirements, examining a supplier’s quality and safety program to evaluate their suitability is advisable.
"When it comes to having contract manufacturers versus a transactional relationship, I believe that partnership has significant value for the company. We can prosper together"
We evaluate several parameters, including quality and consistency, when assessing suppliers. Quality pertains to the product’s overall quality and how the supplier responds to and addresses product defects. When considering consistency, we examine factors such as how consistently the supplier manufactures the product, their on-time delivery percentage, and their ability to meet make-to-order criteria. By evaluating these factors, we can ensure that we have confidence in our supplier’s ability to deliver the required products.
When it comes to choosing the right supplier, what are the other aspects that they should keep in mind?
Regarding pet food, quality and food safety are of utmost importance. When assessing quality and food safety, specific parameters focus on ensuring that the product meets the regulatory requirements to prevent microbial growth. I have a set of nutrition criteria that we have on the specification, so the supplier needs to meet that nutrition quality. Also, we need the package to be intact.
These are some quality things we look for in a pet food product. Consistency is also essential. Every time you make the products, the customers should have the same experience with the product.
What would be your advice on how companies can build the right portfolio for the different needs of their products?
The company must make a clear decision on whether they want a single source or dual source from their suppliers. Opting for a supplier with deep expertise in a specific technology can provide better prices and access to the latest technological advancements. They are solely focused on being the leader in that area. On the other hand, a supplier with multiple technologies better meets the company’s needs, as they can leverage two or more technologies to deliver the desired product.
If I were to make the key points here, the deep expertise is really around cost and innovation in the marketplace. For that, a supplier with multiple technologies and capabilities may not be at the forefront of all that, but they still make good quality products. Because sometimes, when you have a company that has deep expertise in one technology, the size of their equipment or their minimum order quantities might be more significant because they have a more considerable investment in one area, whereas somebody who has multiple technologies may be more flexible.
How do you ensure a mutually beneficial partnership that leads to success?
I firmly believe in partnerships. When it comes to having contract manufacturers versus a transactional relationship, I believe that partnership has significant value for the company. We can prosper together. I believe very much in mutuality, and it is essential to understand what you are, be clear about what your needs are, understand what the supplier’s needs are, and come together so that you can have that discussion and get clarity, before putting all that into a document that is mutually agreed upon.
Sometimes, you need multiple suppliers to meet your needs and grow your business. If you partner with your suppliers and align your working methods with the supplier agreement, you can get things to market quickly.
What would be your piece of advice to your fellow peers on how they can build strategic supplier partnerships?
The advice emphasizes the importance of investing effort into planning, enabling a clear understanding of the company’s strategic needs. This, in turn, helps to establish a set of criteria for assessing potential suppliers, allowing for a more quantitative rather than qualitative approach.