l-L-L – I-N-I is a chant that is frequently heard around the U of I campus, and the last three letters of the cry could be the most important: to companies in the food industry.

I-N-I can be thought of as an acronym that stands for Integrate-Network-Innovate.  Researchers from three international universities have conducted studies that suggest strong networking relationships can have positive effects on vertical integration and innovation.  Having a unique relationship with a supplier should be the cornerstone of any integration strategy, and these strong relationships can prove their worth whether unforeseen problems arise during production or if a contract is up for negotiation. 

Networking with partners should not be overlooked either, as research has shown that these relationships are at the forefront of product innovation.  More networking equals more communication, and information can be shared on areas such as supply chain management and product development that could go a long way in strengthening both companies. 

However, this article fails to mention ways that existing companies can improve their networking skills either in their supply chain or with external partners.  So this leaves me wondering, what are some ways that companies in the food industry can strengthen their networks to achieve the results as described in the article?

Links:

http://www.foodanddrinkeurope.com/Financial/Food-innovation-driven-by-vertical-integration-and-networks