Wholesale Grocers

Wholesale Grocery Suppliers’ Note Prepackaged Veggie Meals’ Market Potential

Wholesale Grocery Suppliers’ Note Prepackaged Veggie Meals’ Market Potential

 

By all accounts, there are more than 20 million Americans out there living a vegetarian lifestyle and many of them would love to see more prepackaged meal options in stores that attend to their dietary needs. On top of that, many of them are part of the highly coveted Millennial Generation. That said, wholesale grocery suppliers would do well to consider answering the large and loyal demographic’s demands. This includes supplying channel members with organic, vegan, non-GMO and gluten-free prepackaged foods as there seems to be a great deal of cross-over potential as well. To reach those ever growing, prepackaged market segments, we’d recommend building an up-to-date database of qualified prospects.

The easiest way to assemble a list of pre-qualified prospects is to start with a convenience store directory that contains accurate contact information for a multitude of rack jobbers, brokers, distributors and head buyers. Then make contact via e-mail to whittle down the field. Prospects that respond favorably to the initial e-mail could eventually be pursued more aggressively using a variety of means. Let’s take a face-to-face sales blitz as a prime example.

Wholesale grocery suppliers could use the directory to set up a series of meet-and-eats that include samplings of the vegetarian prepackaged items that they’re hoping to place in stores. It would be a good, cost-effective, efficient way to bring a group of qualified prospects together and make a compelling sales pitch. Interested parties could then be invited to one-on-one sit downs where suppliers’ sales agents could attempt to close sales.

At Convenience Store Distributor Directory, we have the solid, reliable information that wholesale grocery suppliers need to get started on their databases. It’s delivered instantaneously in Excel format using the e-mail given at the time of purchase. Furthermore, it’s updated using the same format and delivery method twice a year. So maintaining the database, once it’s up and running, should be no big deal. To learn more and start pushing your vegetarian prepackaged offerings today, please contact us.

grocery store distributors

How to Reduce Wastage while Shopping for Essentials at Wholesale Retailers

How to Reduce Wastage while Shopping for Essentials at Wholesale Retailers

 

 

Several times people tend to go overboard when buying at large wholesalers like Costco or Sam’s Club as they get drawn by great deals and offers on bulk purchases. Wholesaler stores are competitive as they have lower labor cost as they are spread across a larger area and offer a variety of options allowing buyers to make their choice and they rarely change places of their standard product lines.

 

Besides offering food and beverage items at wholesale rates due to the advantage of bulk purchase these stores also give large discounts on other convenience items making it attractive for buyers. While making your purchase in these stores it is advisable to be cautious so you can take advantage of the offers and also avoid buying products which may get wasted.

 

Avoid regular pitfalls while going for bulk purchases

 

The easiest way to avoid wasting money is to refrain from buying goods that you rarely use. Even the most sensible shoppers get carried away by sales of DVD boxes, music CD’s, books, t-shirts, knife sets and other durables that they may not even look at after purchase. So avoid buying goods on bargain until you are actually planning to use them. The same goes for perishables like vegetables, dairy and meat products that have limited shelf life and it does not make sense to buy loads if there are only two or three people who eat regular meals at home.

 

Throwing away spoiled food which you bought in bulk just because it was cheap does not result in savings. If you are buying frozen food remember the size of your refrigerator as lack of storage space can also lead to wastage of good food which could have lasted if there was more space. Buying products because they are a good deal becomes useless if it is not used.

 

Splitting your purchases

 

If you are going to a warehouse wholesaler and are expecting to get bargains on bulk purchases then check with your close neighbors and family members if they need any of these essentials so you can save them the trip and can take advantage of low prices too. It is easy to buy several tins of canned products like soups, juices and other beverages and then split it among a small group of people. If you are a regular shopper at these warehouse stores you are likely to be eligible for special large discounts which can again be split among friends and family.

 

Bargain hunting on groceries

 

Some people are of the view that purchasing at wholesaler retailers is always better than at regular convenience stores and grocery store chains as they provide bargains. Check price per unit if you are buying several cans or bottles together to see if they are cheaper while buying in bulk as otherwise it will be a waste. Buying in bulk is not a bargain unless the price per unit is lesser than what you can get at a local grocery store instead of driving to the wholesaler retailer.

 

 

 

Exploring other options

 

Besides food products most wholesaler retailers carry several electronic and other convenience items like tires, computers, clothing, eye-wear, cosmetics and even liquor products which can be purchased at bargains. These product offerings can result in sizable savings if you know when to buy them and know which wholesale retailer provides the best prices so you can time your large purchases. Keep a track of available options in convenience stores around your locality whenever you are likely to make large purchases to maximize savings every month. This will help you to shop for expensive items at reasonable prices instead of paying the full price at your local c store chain.

 

Controlling impulse purchases

 

Warehouse retailers are able to inspire people to indulge in impulse buying with multiple offers on both perishable and non-perishable merchandise. Buyers are attracted to words like bargain, sale and offers and tend to browse around aisles which have got these signs around them. To avoid impulse buying it is best to concentrate on shopping list and buy only goods you require and avoid the aisles which have items you do not need. Check for items on bargain sales to see if they are on your shopping list since if they are not there it is likely that they are not required.

 

Try out samples of new products

 

Do not purchase daily use items in bulk like chocolates, peanut butter, bread, chips, juice bottles and others just because they are available at a bargain if they are from unrecognized brands. Try out samples or take the opinion of someone you trust and only then make a purchase as that is food which someone else can use if you are likely to throw it away. Avoid buying products which you or your family cannot stomach or use within a particular time schedule.

 

Before you purchase a product at a bargain and then regret the decision it is best to take the opinion of other family members if you are unable to take the decision. Spending money on products that will be thrown away in the dustbin or replaced within a short period of time is not a savvy thing do. As a member of wholesale retailer check if your monthly purchases and savings are worth the membership fees that you pay on a regular basis. You can even split the sign-up fee with a friend or family number staying close to your residence so both of you can take advantage of large purchases and bargain offers as and when they are made.

 

Sometimes it is economical to stick with conventional grocers and convenience store chains which offer great bargains on seasonal fruits and vegetables along with beverages. Buying your products from wholesale club retailers in a sensible and thrifty manner is the key to successful maintenance of debt. Though these large wholesale retailers make shopping very convenient for their members due to large number of items that are available along with attractive bargains they are unlikely to replace small convenience stores and independent grocery chains.

 

Wholesale Grocers Directory

Getting your Product in the Supermarket

Getting your Product in the Supermarket

 

As a manufacturer of food products selling through local convenience and grocery stores, your long term ultimate goal would be to see them in branded supermarkets as they can give you the right kind of exposure and guaranteed market which is difficult with small scale stores. You have to adopt flexible strategies and work with experienced experts that can tell you how to get products into c stores which are in supermarket range. There are two basic rules of supply to supermarkets and large retailers wherein you can sell under your brand or as unbranded products which will be sold by them under their own brand.

 

Supermarkets prefer unbranded products as it helps them boost their brand, but if you have a special brand the retailer would not be able to squeeze your margins and you can use this as a platform to increase market for your products.

 

You can use the assistance of convenience store brokers as they have long term relations with large supermarkets to get your products there or try to meet them yourself as a food product manufacturer to promote your brand. Once you get an appointment with a buyer of a supermarket chain present yourself as an organized and knowledgeable person with information about the potential of your product, the price you expect to get for it and how it will be broken up to meet profit margins of distributor and retailer.

 

Large retailers rarely accept unknown brands under their roof unless they are allowed to sell it as their products, but if you have a product that is recognized in local markets and recommended by food distributors and you offer them attractive discounts they will readily accept it on an experimental level.

 

Niche products can create the right impact if marketed and distributed to the right market and also bring large profits to its manufacturers. A recent study by National Association for Specialty Food Trade stated that in the forthcoming years this specialty food sector will account for $50 billion sales in forthcoming years. Large retailers can afford to offer better prices on specialty food products supplied by wholesale grocery distributors which can give greater exposure to your products than gourmet stores. While trying to get your product into supermarkets see if your existing production unit will be able to handle the large scale demand from them.

 

Food and beverage brands which today are famous in international markets have cleverly used the strategy of getting the right product at the right price in the right market at the right time making it an instant success.

 

Steps to get product into supermarkets – If you have a winning product which has been a hit in local markets and you are confident of meeting demand of large stores then you can try the following techniques to get them into supermarkets.

 

Carry out market research – Before marketing your product carry out a detailed market research to study existing competitors in the market and compare it with your product to find the differential factor that makes it special. Visit food product exhibitions and read up extensively on information online and offline to study how markets work and reasons behind failure of some good and bad brands. This information will help you to avoid problems that are likely to occur in beverage distribution and food distribution and help in timely delivery of your product to large retailers.

 

Enlist help of grocery distributors – When you are ready to reach out to big league retailers take the help of your distributors who have better knowledge of market demand and know which of the big retailers can stock your product and also provide the right kind of exposure to your brand. They will give unbiased feedback about products that have been popular in the past and how your product can be marketed and presented to large retailer for instant success. Super markets will not have the bandwidth to develop and market your product so you have to carry out branding, packaging by yourself so take the help of others before you.

 

CheckStand program – As a manufacturer you may not be keen about engaging in marketing side of your product and would like to hand over that responsibility to an expert. This daunting task can be performed by a professional group called CheckStand program which specializes in launching convenience products into small and large retailers. It offers manufacturers two programs depending on the product type to enter the retail industry and create a niche for itself in the competitive c-store product market.

 

The CSP works with manufacturers to design pack and present the product in an attractive manner and carry out test programs within all their affiliate stores. If the product gets a good response from customers then it is distributed through grocery store distributors across the nation or state depending on the manufacturing capacity of manufacturer.

 

Getting the logistics in place – If you are planning to get the large supermarkets to accept your products then get your logistic plan in your presentation. They will ask you to deliver a particular number of units at a particular store one day and deliver the next consignment of specific number of units across stores in a particular state which is not possible unless you have a distribution network in mind. Talk to wholesale food suppliers in your area which make deliveries to the supermarket for a clear knowledge about delivery schedules so you can work out a viable agreement with your client. Do not try to push capacity to breaking point and always have a backup plan in place wherever delivery schedules are concerned.

 

Manufacturers have a tendency to stop marketing and promoting their products once they reach supermarket shelves. But the real competition starts when the product is sitting on the shelves besides other market leaders are trying to attract attention of shoppers who are looking at it for the first time. Maintain constant interaction with your target customers and take their opinion to improve your product or add new ones to the brand. Offer attractive discounts to your distributors and retailers to sweeten the deal and retain your product on the store shelves.

Reference: http://www.checkstandprogram.com/news/getting-your-product-in-the-supermarket/

Retail Food Distribution

Infrastructure of Retail Food Distribution Network Within North America

Infrastructure of Retail Food Distribution Network Within North America

 

Have you ever tried to consider how a fresh stack of vegetables and your favorite brand of groceries reach your nearest grocery store every week? Though the retail distribution network undergoes turmoil every few years to reduce operating costs and maintain growth of both small and large convenience store chains, warehouse retailers and single store grocery and convenience stores. In recent years retail distribution has witnessed a dramatic trend about growing control of retailers on supply chain which has helped to increase inventory turnover. Several large retailers are working with branded food producers to maintain direct store delivery which reduces number of distributors.

 

Supermarkets within North America have undergone a complete turnaround in the last couple of decades as regional and national supermarkets have moved from stocking only food products to complete convenience stores. Now wholesale food suppliers also distribute their products to major retailers which were not dealing in food like Walmart, 7-Eleven, Dollar Stores and 99 Cents only stores.

 

These chain stores now contribute nearly $ 381.7 million per annum to food retail sales and nearly 50 percent food distribution has shifted to alternative retail stores. Unfortunately this takeover of retail food industry by large convenience store chains has led to closure of traditional grocery stores located close to them due to lack of variety in their merchandise.

 

Besides Walmart Stores which is now among top 75 food retailers in North America with Kroger Co. and Costco Wholesale coming close in terms of turnover, other new retailers which have entered grocery product sales in a large way are Supervalu, Loblaw Cos. And Publix Super Markets to name a few. Wholesale grocery distributors have expanded their infrastructure to directly deliver produce to warehouses of large c-store chains and grocery store chains which take care of distribution and delivery to their stores themselves.

 

Grocery retailers are increasingly investing their products into increasing number of stores across the state and national boundaries instead of setting up distribution infrastructure. Retailers which have less infrastructure for food distribution can afford to give better prices to their customers in comparison to small retailers which have elaborate distribution chains.

 

Network of retail food infrastructure

 

Farmers markets – To connect farmers to consumers these markets are emerging as the best resource leading to growth by 54 percent since 2008 which has helped nearly 7000 farmers to connect with retailer chains and interact with consumers too. The USDA provides support to small and large farmers through several rural development programs to improve their produce and expand outreach to large markets.

 

Farmers are now able to interact with food processing firms to supply their output directly to them and also sell it in local markets which have been set up under community facilities grants. Food distributors also purchase their requirements on a regular basis and supply it to food service companies like restaurants, hospitals, schools and other food businesses. Regional farmers markets are being set up across rural farming areas which are close to high traffic areas to attract larger number of buyers.

 

Farmers’ cooperatives – To improve their bargaining power and grow their marketing strength farmers are setting up cooperatives which will also help them get better funding and grants from government agencies. Conservation and Development agencies which are working towards conservation of local industry and producers give financial assistance to these cooperatives to set up warehousing and cold storage facilities where their produce can be stored safely. Food wholesale suppliers also take delivery of their requirements from these cooperative warehouses and supply directly to small retailers, grocery store chains and also to food processing companies.

 

Centralized distribution and delivery – Under this system, manufacturers deliver their produce in large pallets to central warehouses located at key distribution centers which are then broken down into smaller pallets for distribution by vendors like convenience store brokers and grocery wholesale distributors across the nation. This system is ideal for manufacturers of processed food products and also for large farms making dairy products like cheese, yogurt, meat and butter. Food distribution networks in North America maintain their hubs around Los Angeles, Atlanta, Chicago and either New Jersey or Pennsylvania along with Toronto and Calgary.

 

Direct store delivery – Sometimes manufacturers of processed dairy products take the responsibility of delivering directly to convenience store chains through associations like Checkstand program which take the responsibility of launching products to customers along with delivery and sales. These distributors supply both regular and specialty foods to direct sales distribution network to major large and small retailers spread across the nation.

 

These channels help manufacturers bypass regular retailer and wholesaler distribution networks by moving goods directly from manufacturers’ warehouses to stores. Direct store delivery is profitable for perishable products which have short shelf life as products are in stores faster and there is nearly 10 percent reduction in costs.

 

Emerging trend in retail food distribution infrastructure

 

  • Most top food retailers which had their own delivery networks to maintain quality and quantity of merchandise are now outsourcing their distributing needs to service providers like grocery store distributors and farmers’ cooperatives so they can concentrate on expanding number of stores in the region.

 

  • Large supermarket chains like Target, Walmart, Costco and others have varied warehouses for food and non-food merchandise which also function as distribution centers for deliveries to their stores.

 

  • With growing demand for online ordering and delivery of food products by restaurants, grocery stores are keen on having a similar facility of online food distributors which can take care of their needs at short notice.

 

  • Mobile farmers markets which have cold storage facilities are going to areas where people do not have access to farmers markets and helping them gain access to fresh fruits and vegetables grown by local farmers in other parts of the state.

 

In recent years both traditional grocery retailers and grocery distribution centers have closed down due to competition from large retailers which have reduced distribution networks and are able to provide better prices to their buyers. But with improvement in supply chain technology and operational management some future ready supermarkets have managed to stay afloat.

 

 

Mr Checkout

Difference between Mr Checkout and Checkstand Program

Checkstand Program vs. Mr. Checkout Distributors Inc.

Mr Checkout

The major difference is that Checkstand Program provides 100% verification, feedback for less than half the price of Mr Checkout Distributors.

Checkstand Program

Cost: $10.00 and a free fill per store

*Available Store Count-7,000 Stores
*Available Locations -Nationwide
*Communication- You are able to speak to distributors
*Verification – 100%

*CSP works for you unlike Mr Checkout. Checkstand Program acts a broker to push for reorders, while Mr Checkout gives you a list of distributors to call and try to get reorders.


Mr. Checkout

Cost $25.00 and a free fill per store

*Available Store Count-Not Sure?
*The Blitz program is offered in over 25 States.
*Verification?

*After the test you are given a list of distributors to try and call to get reorders, which we have heard no one can get ahold of.


Sign up today to learn more about the Checkstand Program today! 1-888-439-6468

Wholesale Grocers

Get in Contact with Grocery Store Distributors and Convenience Stores.

Get in Contact with Grocery Store Distributors and Convenience Stores

 

For wholesale distributors of locally-produced snack foods, one of the biggest challenges is getting those foods into grocery stores, convenience stores, and similar outlets. These outlets provide the best chances of commercial success, so it’s important not to give up and cede the market to giants like Lay’s. With the right directory, your job will be much easier. We offer two directories that will ease your way: The Wholesale Grocers Directory and the Convenience Store Directory.

Wholesale Grocers Directory

This directory is the biggest database of grocery store buyers in the United States. It provides the names, personal titles, and phone numbers of over 2,000 wholesale grocers. It also offers their areas of operation, sales figures, and the contact information for their buyers and other contact people. You’ll never have to worry about how to find the right person or how to get in touch with them if you use our directory!

Our blog at www.wholesalegrocersdirectory.com also provides plenty of information on just what it takes to get products into major grocery stores. There, you can learn things like insurance requirements, USDA certification needs, and more. By reading it and our other informational pages, you’ll find out what wholesale grocers will require from you and what you need to meet all of the regulations relevant to your business and product.

Convenience Store Directory

Convenience stores take several forms, including stand-alone stores, gas station add-ons, and drug stores. All of these shops have a selection of foods, small sizes of other items, and drinks of various sorts. They’re great targets for any products that are typically grabbed by people on the go.

Our c-store directory lists over 1,200 convenience store distributors, along with the names of their head buyers. We also list the personal e-mail addresses of over 70 percent of these buyers. Over 2,000 c-store brokers and 200 rack jobbers are also included. You’ll certainly have no trouble finding prospects when you buy this directory!

As with our grocery store wholesaler site, we offer all sorts of other information on our c-store directory site, which you can find at www.cstoredistributors.com. This information includes things like how to get your product into stores and how to choose the best distribution channels to do so. We explain the differences between the channels and provide other essential information to make selling your product as easy as possible.

Thanks to our directories and sites, you no longer have to sit and wonder how to sell your product in convenience or grocery stores. We provide the names, contact information, and background information that you need to be a success. To learn more or to purchase our directories, just contact us. Soon, you’ll be on your way to the best part of business: Selling your items and making a profit!

 

start-wholesale-distribution-business

Creative Marketing for Your Wholesale Business

Creative Marketing for Your Wholesale Business

 

There is no such thing as ‘enough’ marketing – especially in this day and age of Internet and the social media. Every business needs to market their products or services but if not done right; the efforts are wasted and this would not translate into new clients or more sales. Also, businesses need to utilize more ways to market their products other than the usual tried and tested ones. If this was not enough pressure to market right, then not only you need to tweak the tried and tested ones to suit your needs but you also have to come up with unique ideas to help build your business.

 

If you are a wholesaler, then you know by now how important it is to market your business. The wholesale business is one of the most competitive businesses out there and you can’t just sit easy after establishing a client base of a few retail stores and assuming that they would be your clients for life.

 

For a successful wholesale business, it is important that you come up with creative marketing ideas that will cost you the least amount of money and will increase your sales in the most effective manner.

 

Here are some creative ways to market a wholesale business.

 

Use your connections

 

One of the best ways to market a wholesale business is through your relationships with the manufacturers. It is in the interest of the manufacturer or the vendor to sell as many products they can sell. For this they rely on the wholesalers. A manufacturer will have many wholesale clients. The key is to become the preferred wholesaler to get the best promotional offers.

Promotions or seasonal discount offers are the best ways to market your business to the retail stores. The more you offer to the retailers, the better your chances of increasing sales and building a new client base.

 

But go a step further and don’t just depend on what the manufacturers offer you. If the manufacturer is launching a new brand of shampoo in the market, then ask for sample sachets for your retail clients. Or if the manufacturer is offering samples on its own accord then ask for promotional leaflets to distribute along with the samples or even without them.

 

Go an extra mile, if you think you have a winning product in hand. Ask your manufacturer if they can provide you with extra promotional material that might list the benefits of ingredients used in the shampoo. If the manufacturer is lagging behind on this or can’t supply you with this information, then have some printed at your expense and request your retail clients to display them in their stores along with the samples and the product.

 

Ask your manufacturer if they can provide you with special promotional products. Ask them if they can bundle together two products to promote one. For instance, maybe create a special promotional packaging for the new shampoo with an existing soap category.

Think of ways you can use your business relationship with your vendors and manufacturers to increase your sales.

 

Make a website

 

If you think a wholesale business doesn’t need a website, think again. All businesses irrespective of the size and type of business can benefit with the presence of a website. You don’t need to spend thousands of dollars to launch and maintain a website. You can easily have an easy to navigate and informative website by spending only a small sum and that also you can reap by the business it will bring you.

 

So how do you maximize marketing benefits through a website? You will of course have information on your inventory and business on your website along with all relevant contact information. Now you need some add-ons that can help you market your wholesale business in new ways.

 

Use the website to display offers and promotions and new product launches. Use a news feature where you can post about new happenings, new launches or any new information regarding your business. Use your website for extra information on products. To continue with the previous example of the new shampoo launch, you can use your website to advertise this product, to mention benefits of the ingredients and promotional offers.

 

Use your website to increase your social media presence. Create a business page on a social networking site and link this to your website where clients can connect with you. Provide existing and potential clients with informative content related to your stock. Use your social media page to conduct surveys on the state of the market or to ask your clients their reviews on new products or suggestions if any.

 

Start a weekly, monthly or bi-monthly newsletter to promote new products and to inform clients of seasonal promotions in advance. Your website will also help you get subscriptions for your newsletter.

 

Network and network some more

 

Attend trade association events. Participate in local business events and seminars. Be at the forefront. Make new friends. Talk about your business. Join online forums to exchange ideas and offer solutions.

Serve your community

 

Use local fairs or community events to promote your business but also offer something back to the community. You can have a promotional stall to promote the new shampoo and offer free samples to all those who visit your stall.

 

Sponsor a community event where you can have your business banner or distribute environment-friendly grocery bags with your logo to all the attendees. People are likely to use these and every time the bags are used, you have the opportunity for business promotion that you created from a single event and for one-time investment.

 

Offer your goods for free for community events. If you are in the food business, you can offer refreshments from your new cookie or juice brand for neighborhood soccer matches. Or you can distribute stationary for the neighborhood reading programs.

 

There are endless ways to promote a business while serving the community. It helps build business goodwill and can give you the satisfaction of being able to do some good.

 

Market right. Market smart.

Wholesale Grocers

Will Grocers Use Third Party Logistics for Outsourcing their Transportation Needs in Future?

Will Grocers Use Third Party Logistics for Outsourcing their Transportation Needs in Future?

 

Transportation costs are a major reason for growth in price level of products from manufacturers to retail stores. While large nationwide stores like Walmart, Costco, Safeway, Seven Eleven and many more have their own transportation, distribution and warehousing facilities, small stores rely on local distributors for their merchandise. Food products required by grocery stores are also in great demand by restaurants, hospitals, schools and other finished food retailers. In the midst of food distribution the parties involved have to also be careful about selling their finished products within a certain period of time as they are perishable and cannot be stored for long.

To reduce distribution costs grocers and convenience stores have varying strategies for both warehousing and transportation to retain competitiveness. To keep a cap on transportation requirements grocery wholesale distributors are using both third party carriers and their own private fleet for distribution of merchandise to their list of retailers. This hybrid transportation methodology helps both transporters to improve their distribution techniques and minimize wastage. Increasingly even food hubs close to large farms which work as cooperatives to collect and distribute food from local farmers use their own distribution trucks for local areas and sometimes transportation facilities of convenience store brokers to send it to distant markets.

 

Why third party logistics are profitable for grocery chains and convenience stores chains

 

  • A growing number of large transportation truck drivers are retiring or moving on to more lucrative job opportunities. New generation is not keen about taking long distance driving as a profession due to the hazards involved and easy availability of job opportunities. This is forcing stores to offload their low-profitable areas to third party distributors which are working for other stores in the area.

 

  • Flexibility that third party trucking companies provide in food distribution is invaluable especially during harvest time and peak holiday season when grocer has to use their own trucks for large number of pickups from farms to manage local demand. Similarly when demand is low then grocer can reduce number of third party deliveries and also maintain customer demand without wastage.

 

  • Retailer chains which have operations on a national level will be unable to maintain their deliveries on their own at all seasons and often use third party carriers to reduce cost of transportation from manufacturer to store to provide competitive prices to their customers.

 

  • The use of third party logistics also helps reduce potential risk of labor conflict and total shutdown as with potential threat of these logistics providers the laborers are also worried about losing their contracts.

 

  • With lesser trucks and merchandise to manage the grocery retailer is also safe from increased capital outlay and expenditure.       Though it can make them vulnerable to same delivery issues which the third party distributor is exposed to the amount saved from assets purchased can be used to expand store outlay and make it more appealing.

 

Though convenience stores and grocery store chains understand that using external transportation facilities may add to the overall cost of merchandise, the benefits accruing from this system far outweigh the expense as they can achieve better productivity from hybrid transportation system. The recent increase in labor costs followed by transportation costs due to high rates of fuel has reduced the grocers’ margin forcing them to relook at the supply chain network to reduce operational costs for having profits. To keep their business profitable retailers have to measure the costs of distributing their products by themselves or through third party logistics providers.

 

Types of third party transportation management providers to retailers – Depending on the type of product there are several types of transportation management providers that specialize in food distribution like wholesale food suppliers and those that deliver apparel, shoes, cosmetics, accessories, cleaning products, tobacco and several others. These distributors are small and large which distribute goods either within the state or on national level on the basis of their expertise and profitability. While some third party distributors focus on small parcel shipments which are carried over large distances through their network of trucks and warehouses large bulk carriers transport goods by rail or ships which are then loaded on trucks and moved to retailers and grocery store distributors.

 

Manufacturer distributors – In this setup the manufacturer or point to point wholesale distributor take the responsibility of distributing the finished product directly from production point to convenience store chain or grocer. This type of delivery is possible when the whole truckload is bought by the retailer store which saves the transportation cost of moving from one retailer to other making deliveries.

 

Central distribution center to retail stores – Instead of having their own transportation service to supply finished products to retailers, manufacturers have a finished goods warehouse or distribution center. This is then moved to other locations by wholesale grocery distributors and convenience store brokers through their own transportation facilities by breaking them into smaller individual orders for distribution to retailers.

 

National distribution channels- These are centers where small manufactures and producers bring their individual finished products which are packed and ready for delivery. These distribution centers are sometimes run by food distributors, wholesalers, manufacturers’ cooperatives, and also by retailer groups to have a uniform delivery system. These products are then distributed to retailers which are a part of this association in small quantities for sale in vehicles which are generally owned by the distribution agency itself.

 

Grocers know that minimizing logistics and transportation costs can help maintain operational costs. As distributors add their own markup to products handled and delivered by them it can affect overall price a retailer charges from end customers. If a large wholesale retailer can take delivery of products from manufacturers’ factory or distribution center then they can provide lower price depending on transportation costs. In the use of third party logistics retailers have to look for multi-client distribution services which travel nationwide to distribute food and other convenience products to large and small retailers in a profitable manner. Like manufacturers, retailers also set up cooperatives to setup their own distribution network or engage third party distributors to complement their operations.

Food service distributors

Different Types of Food Distributors in the Retail Industry

Different Types of Food Distributors in the Retail Industry

 

Today convenience stores have grown beyond regular gas, cigarettes and beer stores to full-fledged multi-utility stores selling food products and a host of convenience items. Though both convenience stores and grocery stores have different business formats, both depend on middlemen like convenience store distributors and grocery wholesale distributors to carry out their business and replenish stocks. These distributors are specialized in carrying a wide assortment of products and are a vital link between manufacturers and retailers.

 

While they provide nationwide markets to manufacturers they also help retailers to find high demand products which will bring in more customers and will also provide high margins on sales.

 

The processing and distribution of food products is a specialized activity and requires inputs by specialists at various levels to make it fruitful to the producers. There are different levels within the food distribution chain like beverage distributors, wholesale food suppliers, wholesale grain distributors, vegetables and fruits distributors, dairy and meat products distributors. While large retailers like Wal-Mart, Safeway, Albertsons and others have their own distribution centers where manufacturers deliver their products, wholesale clubs like Sam’s and Costco pick up directly from wholesalers and manufacturers as it suits them.

 

The food distribution sector links food supply between producers, retailers and consumers. This complex sector includes supermarkets, food wholesale suppliers, grocery distributors, fruit and vegetable processing units, restaurant chains, ready to eat food manufacturers and distributors and food brokers. The food distribution industry comprises of several thousand food service establishments with sales of several billion every year which also provides employment to skilled and unskilled personnel in retail and distribution. A large part of food products are distributed through traditional food distributors channels to small and large convenience store chains, independent stores and grocers along with regular supplies to small and large restaurant chains.

Middlemen in food distribution channel

 

Food distributors – They purchase processed and packaged products directly from manufacturers and also from wholesale grocery distributors and either sell or distribute it to retailers like convenience stores and grocers or to food service companies and other distributors. Food distribution by this group is limited to a middleman’s role of picking up from one person and giving it to another direct seller or reseller.

 

Food brokers – These middlemen act as manufacturers’ representatives and facilitate relationship between retailers and manufacturers. Their main function is to help retailers find new products which will enhance their product line and assist manufacturers in finding suitable outlets to sell their products at a profit. As they do not take physical possession of the food products they do not have any ownership over their distribution and supply.

 

Grocery wholesale distributorsThis group of middlemen are quite similar to distributors of other convenience products but as they do not interact with retailers they are not entitled to carry out stocking activities or provide advice on setting up retail shelves.

 

Food service distributors – (www.wholesalegrocersdirectory.com) These are specialized middlemen with detailed knowledge about markets and demand patterns which enables them to manage supply efficiently. They focus their expertise on servicing customers which are into food service like fast food restaurants, regular and boutique restaurants, ready to eat food manufacturers and service canteens in hospital and schools.

 

Food distribution pathway has several small diversions which help in fine-tuning the product and making it ideal for consumption by the customer. Different distribution paths are adopted by food distributors to get the products to retailers which are dependent on product type, market need, type of retailer and selling skills of manufacturer. While some prefer selling their limited products like fruits, vegetables, dairy products and other farm products in local farmers’ markets and also to brokers, few manufacturers fail to sell their products as they are unable to effectively promote them in the markets. Generally perishable foods like seafood, meats, dairy products along with fruits and vegetables have few middlemen between producer and retailer as compared to processed food products like jams, fruit juice, cheese, and other groceries.

 

Direct store distributors – Distributors which act as conduit between wholesalers and retailers like convenience stores and grocery stores are called as direct distributors as they have a special relationship with retailers and provide them advice about store layout and product positioning on shelves. These grocery distributors are middlemen who specialize in selling only grocery items and these grocery store distributors generally work with manufacturers or wholesalers to maintain quality of their products as ordered by retailers.

 

Grocery wholesale distributor – They have direct business relationship with several manufacturers as a whole as they buy goods in large bulk quantities which improve their buying power in the market. They have large warehouses where the goods are broken up into smaller pallets for distribution through brokers and agents and distributors. Wholesale distributors give discounts to distributors or retailers who buy large number of items from them and take the responsibility of picking up the goods from warehouses directly as this saves on distribution costs.

 

Online food distributorsWith the boom in online sales of ready to eat food products through fast foods outlets and restaurants, even grocery chains and convenience stores are slowly exploring this purchase and sales option. Wholesale food distributors are increasing their online presence to help retailers and brokers to make their bulk purchases online so that their orders are replenished if their delivery trucks are in that neighborhood. Packaged food items can be sold on wholesale like soups, snacks, cookies, canned products, spices, seasonings, baby food, tea, dry groceries and pet food. Through purchase from online food distributors retailers are assured of low prices and are saved from waiting for regular distributor to make their deliveries.

 

In undeveloped markets food distribution is still carried out through traditional channels of multiple middlemen which lead to wastage and products being marked up at a high level when consumers buy them. These countries also lack proper transportation, storage, warehousing and processing facilities which lead to high inventories at the manufacturer level. The maturity in European, US markets has encouraged global retailers and distributors of food products to focus their attention on undeveloped markets in Asia, Australia and Russian Federation.

distribution

Emerging Trends in Wholesale Distribution

Emerging Trends in Wholesale Distribution

 

In the supply chain network of distribution from manufacturer to retailers, wholesalers play a major role and occupy the middle position between manufacturers and convenience store brokers or retailers. This group was never emotionally attached to the products which it was distributing to retailers or distributors as its services were limited to caretaker duties. With growing trend of large format retailer stores with nationwide chains which are setting up their own warehousing and distribution networks it is increasingly becoming a challenge for wholesalers to retain their importance in the distribution chain.

 

With growing number of convenience stores turning into food and beverage distribution outlets the supply chain networks are becoming more complex to maintain this demand. While customers are seeking better products at lower prices, manufacturers’ cooperatives and farmers are demanding better prices for their products which are squeezing the wholesale distributor from both sides.

 

The wholesale distribution sector has annual sales figure of $5 trillion which has fallen by a trillion since 2011 and is expected to grow at a compounded rate of 6 percent in forthcoming years. During next five years the revenue of distributors will grow by 50 percent while retailers will grow by 40 percent as the national economy has grown by 30 percent irrespective of the tough economic conditions. Though a few key industries like tourism and automobile have slowed down due to increase in gas prices the retail industry has remained steady.

 

Challenges in today’s competitive markets for wholesalers

 

Manufactures are seeking profitable ways to get their products into c-stores and want to keep distributors to the minimum. In this endeavor they are taking the help of grocery wholesale distributors and other convenience store distributors which move the goods directly to the retailers. Customers are also demanding more customized delivery systems to have better products which reach them at home at a competitive price. Global competition from low cost products is making it difficult for retailers to store local made products at low prices if the cost of distribution is high.

 

How to get products into c stores in time

 

The biggest challenge before manufacturers and distributors is to get their products into their preferred stores in time before customers are given a better alternative at a lower price. Wholesalers play an important part in this exercise by being able to identify the right storage facilities and finding the right distributors for their products. To combat this issue there are convenience store brokers associations and distributor groups who take the responsibility of marketing and distribution of products from manufacturers to retailers. They get the latest products and display them before consumers at convenience stores and grocery stores directly which are a part of their member distribution chain and then maintain regular supply depending on demand.

 

 

Technological challenges

 

Managing inventory and storage along with regular replenishing of stocks and being able to have updated information about stocks available in the warehouse is a challenge most wholesale face in their business. While this can now be managed with information technology the wholesaler has to identify the right solution which will be appropriate for his current and future needs. The right software solution should be able to manage customer orders, track inventory and generate shipping assignments for trucks that move out to distributors. Wholesalers also have to invest in software for automating standard tasks like making packing lists for pallets moving out of the warehousing along with drawing up invoices and comparing them with customer order lists to avoid mistakes.

 

Challenge from large retailers

 

Now that fuel prices have stabilized distributors are safe from one challenge to now face large retailers like Walmart, Safeway, Costco and others who are bypassing them to directly take delivery of products from manufactures. They have set up centralized collection centers wherein manufacturers supply their truckloads of produce which is repacked and distributed to the retailers’ stores which are spread across the nation. The distribution of these products from collection centers can be done either by these retailers themselves or through third party distributors.

 

Challenges of export/import

 

The wholesalers take responsibility for export of goods across Japan, Canada, Mexico, China and locations across Europe which has suffered due to economic upheavals and natural disasters. The long trucking dispute between US/Mexico also led to loss of several million as traffic from both sides of the border came to a standstill during this period.

 

Emerging trends in wholesale distribution

 

In spite of these challenges the wholesale distribution sector has been able to manage industry requirements and adapted itself to requirements of business and industry. While technologically wholesale distributors are able to improve their efficiency external challenges are forcing them to adopt new trends to improve bottom-line and manage growth.

 

Distribution channels driven by demand

 

This refers to distribution which is driven by demand as goods move down quickly through the supply chain due to ready demand. In today’s customer driven markets the manufacturers do not push goods towards buyers and retailers manage their inventories based on consumer demand. This helps in allocation of products across a widespread geographical area as manufactures and wholesalers are now aware of pockets which have demand for their products. Channel partners comprising of wholesalers, distributors, brokers and retailers share data about consumer demand which helps maintain inventory supplies.

 

Direct interaction with customers

 

With the assistance of internet, wholesale distributors are able to improve their business activities as they are able to directly connect with retailers and customers. The innovative wholesalers are managing supply chains by using internet to interact with buyers to understand changing trends and using collaborative tools like virtual trade-shows. Online business environment requires wholesalers to use their website as promotional tool for lead generation and sharing information.

Now warehouse management systems are sophisticated tools which constantly help top wholesalers to stay ahead of competitors through effective strategy. The national association of wholesale distributors works with more than 100 wholesalers to access and analyze business information which can help managers to make business decisions which will meet unique challenges and provide long term solution.