This study was presented at FSMA's 12th Annual Top2Top Conference, February 15-17, 2006 at the Disney World Resort in Orlando, FL.

Background

The purpose of this study is to determine the nature and extent of value created for Foodservice manufacturers and distributor and operator customers through outsourcing of sales, merchandising and select marketing functions to foodservice sales agencies. The results of this study discuss how mutual value is produced and enhanced by outsourcing strategic and tactical sales & marketing tasks to agencies. Also revealed is how manufacturers and customers can make their sales & marketing results more efficient and effective through focus on their core competencies relating to manufacturing, distribution, procurement and branding, and let specialized agencies provide sales and marketing services. The study further examines the comparative value of specialized tools, technologies, processes, people skills and economies of scale in sales agencies that produce this outsourced value for manufacturers and retailers.