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ID NEWS: Distributors, manufacturers to collaborate on category management programs

The landmark study on true item-level profitability in the foodservice channel, conducted by Technomic, Inc., and Willard Bishop Consulting (WBC), has entered a new phase: A number of major manufacturers and distributors have agreed to collaborate on category management programs utilizing the Technomic/WBC Category Profit Optimizer tool.

These programs will lead to detailed action plans that will result in greater profitability for both parties, according to the two consultant organizations.

"People once thought category management could not work in foodservice distribution. That view is quickly changing, as we roll out our new category management tool that gets at the heart of effective assortment," comments Paul Weitzel, vice president of Barrington, IL, based WBC.

"The unprecedented level of cooperation between manufacturers and distributors reflects the excitement generated by the potential profits available to both parties through effective category management," adds Gary Karp, vice president of Chicago-based Technomic.

(See ID Management Report, 3/20/03 issue, for details on one of the first manufacturers to have embraced the study.)

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