A few weeks ago, I reported that Morningstar Farms was losing business because supposed "supply problems" prevented them from keeping their popular veggie dogs in stock at grocers.
Well, I didn't expect that post to become so active with comments. In one of the latest comments, a poster pasted a message from Morningstar Farms in which a representative wrote that "We are sorry to tell you that our Morningstar Farms® Veggie Dog products including Morningstar Farms® America's Original Veggie Dogs, Morningstar Farms® Corn Dogs, Morningstar Farms® Mini Corn dogs, and Morningstar Farms® Corn Dogs Made with Natural Ingredients have been discontinued. Our veggie dogs have been out of stock for several months due to supplier issues. Unfortunately, we have not been able to secure an appropriate facility to manufacture them."
In a quick look around the Internet, consumers are raving mad about the discontinuation. "Supplier issues" and the inability "to secure an appropriate facility to manufacture" the veggie dogs appear to squarely point the finger at Morningstar Farms' procurement department for what could become a nightmare for this company that has built itself up to venerable status among vegetarians.
What are the potential consequences for Morningstar Farms? Only the opportunity for competitors to steal their customers and the loss of hard-earned customer loyalty.
Could this spell doom for the Morningstar Farms brand? Quite possibly.
Now, I don't know the specifics about this situation - Morningstar Farms declined an interview request - so I can't say with certainty that this debacle was the result of incompetent procurement. But with the limited information that is out there, it certainly seems that way.
Could you risk destroying your company's brand with a procurement slip-up? Imagine yourself in Morningstar Farms' situation and figure out what you would do. Then, apply that same strategy to your own situation.
You don't want bloggers like me publicizing the impact of your errors, right?
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com
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2 comments:
Very interesting situation. After reading the comments on your previous article, and my past experiences in this field, it sounds like their product was somehow contaminated during production at the facility, or worse, that some raw ingredient that they're using was found contaminated and now they're desperatly looking for a new supplier. As you have said, their loss (poor checking of raw goods) will be someone elses gain.
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