Prophet's Mick Heatherington and Tony Zuccato Talk European Trends and North American Potential
WESTLAKE VILLAGE, CA - With our industry often eyeing our neighbors across the pond for anticipated shifts in everything from food trends to technology, I recently had the chance to dig into how up-and-coming produce software provider Prophet aligns perfectly with the next iteration of fresh business with the company’s Vice President of Sales Mick Heatherington and Chief Operating Officer Tony Zuccato.
“The supermarkets’ domination in Europe forces produce businesses to look at their own supply chain and costs to make money,” Mick explains. “There's a commonality to all the clever packing and grading machinery and other tools. Most of it is all designed, developed, and engineered in Europe, crafted for efficiency and making a profit from incredibly skinny margins. It's high volume, low margin for produce operators and, obviously, very, very fast-moving supply chains.”
While this may sound familiar to Stateside operators, Mick shares it is not an exaggeration to say our European counterparts work on a seven to 10 percent gross margin.
“This has pushed produce companies to look inward, be more efficient, and ERP systems are a big part of that. Margins are better in the U.S., even though they are getting skinnier. That change will have the same impact in necessitating looking at internal processes, and it is something we’ve already been doing for over 20 years,” Mick points out.
Other areas Prophet has built its network around include food safety and traceability. Suppliers wanting to work with European supermarkets receive thick manuals detailing compulsory requirements and approach to these areas, necessitating software that is broad, flexible, and deeply implemented. Now, with this becoming much more prevalent in the U.S. too, Mick and Tony pose the question if the technology available is ready.
“The impact of these regulations and margin pressure is only going to grow. So, we're well positioned to help potential U.S. customers get ahead of what’s to come. It’s a factor that drove us to start working into the U.S. market in the first place—supply chains are more cost efficient, and their traceability and food safety is more mature in Europe,” Tony observes.
From tracking and traceability to cost awareness and flexibility, there is more than an article’s worth of features to the company’s offerings. Yet I can share from firsthand experience learning something new is harder before it is easier. From new phones to better programs, I always resist, even though I inevitably ask the same new offering where it’s been all my life once I’ve completed the learning curve.
“This is true," Tony acknowledges, but his smile is confident. "And we're there every step of the way and with smart proactive planning about how the software is going to work and meet all their needs. It’s a strategy we’ve gone to market with and are seeing success. We had a less-than-six-month implementation cycle with a couple of customers last year specifically. We strive to work with customers and take the pain out of the implementation process. It is a big process, yes, but it needn't be something to be scared of with the right partner.”
With an eye for growth on the horizon, Prophet is a company we certainly expect to hear more news from, so stay tuned.