Wholesale Grocery Suppliers’ Note Prepackaged Veggie Meals’ Market Potential

September 6, 2023/in News /by wholesale

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.

Ready to Work with Food Wholesale Distributor Companies?

January 19, 2023/in News /by wholesale

Ready to Work with Food Wholesale Distributor Companies?

For people just starting out, selling farm fresh ingredients and specialty foods on a large-scale is confusing. The barriers of market entry alone can be hard to understand. This is especially the case when non-direct marketing channels are involved. For example, privately owned restaurants may not demand that their suppliers provide labels on all products whereas convenience stores, grocery chains and food wholesale distributors companies do. With that said, we’ve put together a short list of what many food wholesale distributors expect and included information on how suppliers can reach them when they are ready to do business:

In general, food wholesale distributors expect suppliers’ products to have labels and packaging that meet industry standards. They should also meet any certification requirements typically associated with applicable product categories and be covered under the supplier’s product liability insurance. In addition, the supplier must be poised to explain why his or her product is better or at least equal to the leading brand. On top of that, the company’s sales team must offer the distributor attractive, wholesale pricing. He or she has to be able to fulfill large orders on time, to exact specifications, and handle all related activities professionally too. By related activities, we are referring to tasks like invoicing and preparing accurate bills of laden.

If a supplier is able to meet all of those industry requirements, the next step is to invest in a top-notch directory. The directory should contain food wholesale distributor companies’ contact information in a workable, easily digestible form. That way, suppliers can begin prospecting and qualifying sales leads without having to go through the time and expense involved in building a lead pool from scratch. To learn more about the best food wholesale distributor company directories there are on the market today, please contact us. At Wholesale Grocers Directory, we have access to, and information on the people, programs and businesses that food sellers need to know.

How to Reduce Wastage while Shopping for Essentials at Wholesale Retailers

September 4, 2019/in News /by wholesale

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.

Getting your Product in the Supermarket

June 2, 2019/in News /by wholesale

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/

Get in Contact with Grocery Store Distributors and Convenience Stores.

March 16, 2019/in News /by wholesale

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!

Infrastructure of Retail Food Distribution Network Within North America

February 18, 2017/in News /by wholesale

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.

Difference between Mr Checkout and Checkstand Program

February 2, 2016/in News /by wholesale

Checkstand Program vs. Mr. Checkout Distributors Inc.

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

Creative Marketing for Your Wholesale Business

May 5, 2015/in News /by robet hicks

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.

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

January 31, 2015/in News /by wholesale

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.

Different Types of Food Distributors in the Retail Industry

January 24, 2015/in News /by wholesale

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 distributors – This 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 distributors – With 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.