Challenges in Food Distribution Occur
The food scene has dramatically changed over the past century. Modern consumers shop differently than they did even 10 years ago. The food distribution industry is worth more than $372 billion annually. Food distributors are finding new and innovative ways to reach out to consumers. Organic ingredient suppliers are in demand. With these new business models, food companies have to respond to issues that arise due to regulations and demand.
Supply and Demand
Foodies are a fickle group. In 2009, ramen was a food trend. Five years later, it was kale. If your business doesn’t pay attention to demand, you could end up with a potential surplus in your warehouse. Conversely, you could also end up not having enough of a product to meet the demand. Either way, you lose your market share. Wholesale food distributors have to be able to keep up with the industry to keep your business on the cutting edge.
Food Safety Issues
Recalls are a huge problem in food distribution chains. The FDA issues hundreds of warnings and recalls each year for unsafe food items. Consumers lose trust in brands that are contaminated. Companies that don’t address issues quickly may find themselves in deeper trouble when consumers refuse to purchase their products. In 2009, Peanut Corporation of America had to file for bankruptcy protection after over 3,200 peanut products were recalled. Peanut Corp wasn’t the only company affected. Consumers lost confidence. Sales of peanut butter dropped, even brands that weren’t part of the recall. The recall impacted farmers, manufacturers and retailers, as well as the distributors. It’s your reputation, even if it wasn’t your company that failed safety regulations.
Transparency in the Food Chain
Your company needs information about the products you use. You have to know your inventory so when a recall notice does come through, you can act quickly. Distributors have to ensure that your company gets accurate information about the products in your warehouse. It’s also important to know how the products were grown and harvested. Today’s consumers demand organic products. Many of the food industry labels are voluntary and not FDA regulated. Without transparency, the labels mean nothing.
Improve Your Food Distribution Supply Chain
Technology, planning and better processes contribute to the success of your food distribution chain. Work with companies that are finding solutions for the problems you face in your food business.
Are You Looking for Wholesale Food Distributors?
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