Howes Percival
The secret ingredient - managing supply chain contracts
From farm to fork, brewery to bar, the journey to bring delicious creations to our tables is complicated. Businesses in the UK’s vibrant food and drink sector manage intricate supply chains and a myriad of issues to keep the shelves stocked and restaurants thriving. With rising input costs and import/export challenges in
Miles Barnes Partner Howes Percival
a post-Brexit/high tariff world, keeping prices competitive without compromising on quality is a constant battle. T en there’s the regulatory landscape, a shifting terrain of food safety standards, labelling requirements, and environmental concerns that can leave even the most seasoned entrepreneur feeling a little… well, seasoned. And let’s not forget the sheer number of moving parts,
from raw material suppliers, manufacturers, co-packers and logistics providers to organise just to have products to sell. And on the other side, you’ve got customers (whether retailers, wholesalers, restaurants or consumers) each with their own expectations and demands. So, how do you keep the whole process from
falling apart? A big part of the answer is having clear contracts. Contracts aren’t just for when things go wrong.
T ey set clear expectations for what each part of the supply chain should to do to get your products where they need to be, when they need to be there and to represent your brand well when they do. So, where do you start?
Suppliers ■ Be clear on specifi cations: clearly defi ne the quality, quantity and delivery schedules for all goods and services. Specify what happens if the quality isn’t up to scratch – rejection rights, refunds or replacements should be clearly outlined, as should any specific expectations you have (e.g. ethical sourcing, brand presentation, accreditation requirements).
■ Traceability is key: make sure your contracts require your suppliers to provide full traceability information. T is isn’t just a regulatory requirement but is also vital for building consumer trust and demonstrating those all-important ESG credentials.
■ Food safety fi rst: your number one priority is to ensure your products are safe for your customers to eat or drink. Include clauses in your contracts that allow for audits, provide remedies if standards aren’t met, pass on liability for defective products appropriately and set clear expectations for managing recalls.
ALL THINGS BUSINESS | 14
FOOD, DRINK & HOSPITALITY
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