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In 1898, W. K. Kellogg and his brother Dr John Harvey Kellogg were trying to make granola. The attempt failed but resulted in them accidentally flaking wheat berry.
place a clearly documented strategy to engage sup- pliers more pro-actively and manage the documentation of supplier performance more effec- tively. This process enabled issues to be managed based on a proper examination of the facts, allowing the issues to be resolved at the source of the problem. We started with direct suppliers of ingredients and packaging, and later expanded to include co-manu- facturers * . In terms of business drivers it was primarily cost, contract compliance and an increasing appetite for innovation that were our priority. In the US we have the additional dimension of a strong supplier diversity agenda that large corporations need to consider. How did the programme develop from there? Initially, the programme was focused on performance and direct suppliers, and it took a while to expand the scope to include more strategic dialogue with key sup- pliers. We took incremental steps starting with basics around KPIs and measurement, before starting to get more feedback from stakeholders on how well they thought objectives were beingmet. It wasn’t until about 2004 that we introduced the concept of executives sharing directly with suppliers what the relevant strat- egies were for the company, through a supplier day. Between 2006 and 2010, we expanded the programme to include co-manufacturing suppliers. This was an interesting development in that we had to re-evaluate how we measured performance for these suppliers, as the traditional plant based measures of quality and delivery were not applicable. The expectations of these suppliers are far more about how well they assure their own manufacturing processes and how they are aligned to our corporate objectives and values.
W.K. kept experimenting until he successfully flaked corn, and created the delicious recipe for Kellogg’s Corn Flakes. By 1906, W.K had opened the Battle Creek Toasted Corn Flake Company where the initial batch of Kellogg’s® Corn Flakes® was created. In the years that followed, Kellogg Company continued to expand and eventually opened factories in Aus- tralia, England, Mexico, Japan, India, and beyond. Today Kellogg’s breakfast cereal and other products can be found in over 180 countries. Kellogg’s has a commitment to quality and one of the most recognisable global brands in the famous red signature of founder W.K. Kellogg. They have long realised the importance of their suppliers in main- taining quality and protecting their reputation. While supply chain management has been a feature of Kellogg’s operations since the very early days, the current approach to SRM can be traced back to 1997. Cathy Kutch, Director of Supplier Relations and Diversity, is almost unique in having been part of the Kellogg’s SRM programme from the very start. We were delighted when she agreed to share with us some of the highlights of the journey that Kellogg’s has been on and in particular the role of programme lead. When was SRM in its current form established and what were the key business drivers? We started in 1997, developing an approach that con- sisted of three main pillars. First, we knew we had to achieve excellent supplier performance that could be more clearly demonstrated. Second, we wanted to share our expectations more effectively and embed them in strategic discussions with suppliers. And third, we wanted to engage with suppliers more effectively. We started with performance. At this time we re-en- gineered our sourcing process and it was clear we needed to improve the later steps in the process around post contract supplier management. At that time we were changing or introducing a number of new suppliers and therefore needed to re-engage stakeholders. We saw it as our responsibility to put in
* Co-manufacturers are partner companies that also manufacture Kellogg’s products
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