Global Food Supply Partnerships in Focus — Kellanova Company Case Study

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.

W.K. kept experimenting until he successfully flaked corn and created the 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, the business continued to expand and eventually opened factories in Australia, England, Mexico, Japan, India and beyond. Today, Kellogg’s breakfast cereal and other legacy products can be found in over 180 countries.

Now operating as Kellanova, the company has long held a commitment to quality and remains one of the most recognisable global food businesses, rooted in the values established by its founder. Kellanova has long recognised the importance of its suppliers in maintaining quality and protecting its reputation.

While supply chain management has been a feature of the organisation’s operations since the very early days, the current approach to supplier relationship management (SRM) can be traced back to 1997.

Cathy Kutch, Director of Supplier Relations and Diversity, is almost unique in having been part of the Kellanova SRM programme from the very start. We were delighted when she agreed to share with us some of the highlights of the journey that Kellanova has been on, and in particular the role of the programme lead.

What operating model have you adopted for SRM and how many people are involved?

Our approach is for managers in procurement to maintain the relationships. There are a small group of our raw materials suppliers that can do extremely innovative things that are managed out of our research, quality and technology group. However, we adopt a team approach and they work very closely with us, because in the end we maintain the relationship within procurement. I know that people debate that and I see merit in the argument to position SRM more in the business. However, we believe that having the relationship managed here in procurement works better to promote a single interface and consistent communication.

Is that a dedicated role or is it combined with the sourcing role?

We combine SRM with the sourcing role. Again, I know opinions vary on this, but we regard SRM as part of the end-to-end strategic procurement process and believe that involvement in, and a good understanding of, current supplier relationships is vital to long-term strategic sourcing.

What are the most significant challenges the programme has faced?

There are numerous challenges but I think the biggest of all is to communicate the value, as it is not always tangible at first. Everybody is very busy but it is important for everyone to see the value of their efforts realised. Suppliers themselves reinforce this value constantly. It is our job to make sure the message is carried throughout the organisation.

The second challenge is the technology it takes to pull all that information together. I have been very fortunate to have a small team that supports me. We are currently working on a better technology solution which will be a great help.

Continuous marketing of SRM and its value to the business is also a challenge. Our supplier days help on this front, when suppliers meet with our executives and promote the benefits of the approach themselves. I’ve never had a supplier say, “this doesn’t add any value to me”. In most cases suppliers would pay to get this level of information and engagement.

What are the most successful features of the programme?

We see successes across the programme and they vary significantly. When we were segmenting our suppliers, we were very clear with them about the level at which they were positioned. As a result, we have much better alignment of expectations on both sides.

We have seen suppliers respond very positively to the investment we put into engaging with them. One supplier said to us, “you investing in us and keeping us top of mind means we’ll do the same thing for you”, and we have seen that happen.

Having performance data has made a huge difference. Conversations with suppliers are very different. They have a much better business structure because we have put something in place that generates a different thought process. When you start providing direct feedback, suppliers get involved and begin asking what they need to do to improve.

The more I think about it, the more convinced I am that it’s the information that makes the difference. Changed attitudes and behaviours are important, but without information you have little to work with. We now provide information that becomes the catalyst for broader impact across the business.

What is it about the Kellanova SRM programme that makes you proud?

Our executives are deeply concerned about the values and strategic objectives of Kellanova. What makes me proud is being able to say that we are viewed by our suppliers as strategic.

Investing in suppliers we regard as valuable assets has a clear return on investment and supports win-win outcomes. Holding supplier days and sharing performance information and strategy makes a real difference to relationships. If I had to choose one thing, it would be the improved communication. All of our supplier feedback tells us this has a meaningful impact.

What aspects of the programme are you currently looking to develop, refine and improve?

First, I want more KPIs and more solid data, recognising that all data requires context to be understood properly. Second, we are looking at how we scale globally for both direct and indirect procurement.

We want to become more standardised across regions and categories, and to engage suppliers more effectively on innovation. It’s a never-ending journey. We are determined to improve every year and ultimately have suppliers say, “this is the best year yet”.

It may be that you are almost unique in being at the centre of the Kellanova SRM programme since its inception. What is your perspective on the role of the centre?

This role is about providing structure behind the process. It’s not about an individual; it must be part of the company philosophy. Kellanova has committed the resources required to support this, including administrative support and funding supplier days.

Creating forums where strategies are aligned and senior leaders can engage is essential. Without these, conversations never progress to “what’s next?”.

What do you think the key skills and attributes are for somebody in your role?

Passion, determination and drive are critical. You also need an environment that promotes the right behaviours. The ability to bring people together, listen, understand stakeholder and supplier needs, and collaborate is essential.

You often work without formal authority, so communication, influence and rapport matter. Attention to detail and consistent communication are critical to success.

What advice would you give to somebody taking on the role of leading an SRM programme?

Start with what you have. Even basic processes make a difference. Don’t wait for perfect resources. Build momentum, stay flexible and remain focused on collaboration.

Our responsibility is to do the very best we can with what we have. When procurement sees the value, they will support the programme — and that support is essential to success.

* Co-manufacturers are partner companies that also manufacture Kellanova products.

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