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Two Trends Shaping the Food Service Distribution Industry

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ERP Selection & Management

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By Jeff Warwick
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Two Trends Shaping the Food Service Distribution Industry

Over the years, Food Service Distributors have maintained a strong national presence.

With sales over $280 billion annually and $51 billion in additional output, this remains a major industry. From restaurants and cafes to hospitals and health care facilities, many businesses depend on them to perform.

As new trends emerge, distributors are finding themselves with a changing marketplace, but much opportunity. Each trend showcases the possibility for growth and development, only if they’re met head on.

Adapting Technology to suit your needs

Investing in technology is an important part to many businesses in various industries. The degree to which different firms adapt demonstrates their commitment to reorienting themselves.

For Food Service Distributors, technology is playing a more prominent role. With increasing changes for distributors, as supply chains merge or evolve, adapting new tech is critical.

The way you acquire sales is changing as different factors come into play. Meanwhile, you want to meet expectations and avoid customer issues as everything evolves going forward.

With technology, you can better manage your entire supply chain and prevent common errors from occurring. Similarly, adapting to new trends requires learning more about your company’s performance.

Many firms adapt data retrieval programs that help them break their information down to a useable mix. You’ll gain new insights from your Data Silos, while identifying Key Performance Indicators to determine your strengths. Creating ideal outcomes for your business

More Variety for Customers

The changing needs of customers can always impact any company in the long run. It’s hard to admit, but such developments help your firm, despite initial misgivings.

In recent years, food sellers, restaurants and similar businesses, have been attempting to expand menus based on changing customer tastes. More “Health-Conscious” options have resulted in businesses demanding newer and different products from existing suppliers.

Providing many restaurants and eateries with more revenue, while distributors face a new challenge.

Many distributors now have customers who want more “variety” to serve their own customers. The result is a more complex network, requiring new suppliers and logistics to meet several kinds of demand. All of which leads right to the client’s dinner plate.

In the past, many firms ignored “niche” foods, but that’s no longer the case. More places have widen their menus and distributors are expected to do the same. To do so requires expanding your distribution networks and reaching out to different suppliers to provide newer items.

While this might seem complicated, the end result is your company’s expansion and stronger growth in the long-term. These may only represent two trends facing this industry, but with each one comes newer opportunities to improve your business, better compete and become what you want to be.

 

Jeff Warwick

Jeff Warwick

Partner, Clients First Business Solutions New Jersey

Jeff Warwick is an experienced partner at Clients First with over 20 years of ERP solution selling under his belt. With his honest approach and fine attention to detail, Jeff has helped hundreds of growing businesses find the right ERP software and technology to last the life of their business. When he’s not driving high impact results for his valued customers, you can find Jeff rocking out on his guitar at his local church!