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Tetra Pak South Africa’s desire to create strategic Partnerships with those they do business with remains at the foundation of the way they work. This particular journey started ten years ago with a certain level of frustration from both Tetra Pak and Ceres Fruit Juices. From Tetra Pak’s angle it was a case of not being able to break through with Ceres Fruit Juices, “We are not penetrating, or creating value or growth.”
view The Ceiling of Complexity
From Ceres there were 3 challenges:
- To return to profitability… with increased competition.
- To reassert innovation as their culture and focus (including technology changes), to ensure they delivered on their Customer needs.
- In their mind, they were not no. 1 for Tetra Pak anymore… in the words of the Chairman, “Ceres is in a turnaround phase and its most important Partner is not helping us.”
Although Tetra Pak was focused on this account, they weren’t part of Ceres’ strategic thinking. It was always short-term thinking, short-term results, and delivering….ACTION! And because of this, the relationship had reached a stalemate.
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Tetra Pak turned to their ‘Customer Growth’ Partners, Argil and used the Strategic Customer Satisfaction Process (CS) Process, the intention was to bring about a positive shift in the relationship where both parties gain an appreciation of the influences that could help or hinder an effective Partnership; to gain trust and credibility for both; and to turn crisis into opportunity.
However, this is all a lot easier said than done. Developing meaningful Partnerships takes courage, commitment and time…. and in fact, in this case, seven years to get to, “It's a Partnership. There is a real interest from Tetra Pak in our business. It's an honest relationship. It's a supportive relationship. We are Partners”
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PHASE ONE: (Year One) In response to the question, Overall, based on the products and services you receive from Tetra Pak, please rate your overall level of satisfaction? (Where 1 is not at all satisfied and 5 is very satisfied), Ceres’ rating for Tetra Pak was 2.75 out of 5.00… “Currently we are very concerned… we need to get brilliant at the basics again.”
Reassuringly, the Key Important Action was, Strategic Alignment 40%. “Ninety percent of our business is tied in with Tetra Pak – our future is in their hands”; “Let’s establish joint goals and strategy together. We need strategic support. How can WE take this business forward?”
The desire was there.
(Year Two to Three) The following years saw a resolution of the basic issues, a clearing out of those impediments that were holding back the relationship. The top important Action remained Strategic Alignment with thoughts such as, “How will being strategically aligned work for us? Why should we pursue it? Will we get payday? This is where we will test our Partnership and Strategic Alignment”.
PHASE TWO: The second period of consolidation was a time where Innovation was more important than fulfilling IFOT requirements… a paradigm shift for all. This phase took the Partnership from meeting current requirements to a goal of exceeding requirements, a time for growth. The No. 1 Important Action had changed to Innovation 33%. “Tetra Pak need to bombard us with products, not just packs. This needs to be finely focused… Tetra Pak knows Ceres.” Coming in at a close second, Strategic Alignment 23%, “The relationship is excellent. All the hard work over the last four years has been worth it! BUT, what will happen in the future?”
The overriding sentiment, “We need a Partnership Strategy to grow Ceres’ penetration into the African market. We are totally committed to Tetra Pak and to being a business partner with you” and the Strategy session theme, “WE… Driving Growth Together.”
A second period of consolidation came at Year Five and this was the first time Tetra Pak was seriously rated against a competitor, “Get the spark back into the relationship - we want it back. The competitor is not as good as Tetra Pak, but they have got the spark” and, “There have been big changes in Ceres. First two years – ‘fix’; next two years – ‘innovate’; now ‘acquire… and grow’.”
PHASE THREE: The end result, the Overall Satisfaction Rating had moved to from 2.75 to 4.13, and a Partnership robust enough to handle almost anything, “The internal issues are sorted out between us, i.e. relationship and problems are resolved... and margins and value are continually worked on together; we have created wealth and value over time”; with a Joint Vision, To be Strategically Aligned with each other, where there is a strong Partnership and both parties are striving for and achieving mutual growth and success… now and in the future.
After all was said and done between Tetra Pak and Ceres Fruit Juice, the Manufacturing Manager at Ceres had this to say of the Process, “Value is an ongoing Process – dealing with new issues every year. If you don’t go through the Process with your Key Customers, you won’t see the cannon ball before it blows your head off.”
Now there is no turning back, working together, strategically thinking together – now both Tetra Pak & the Ceres Management can see the growth. A credible, honest result.