Today’s food and beverage distributors are faced with a complex set of business challenges:
- Increased variety in the marketplace – Consumers have come to enjoy many more product choices in recent years, which makes it very challenging for foodservice distributors to plan and fulfill these products with the service levels and pricing required to remain competitive.
- Increased regulation – Recent federal and industry regulations place a high standard for transparency and traceability on food distributors.
- An increasingly consolidated market – As the big retailers get bigger, the big distributors get bigger, and with manufacturers increasingly selling directly to retailers, the average distributors customer base is shrinking.
- Managing complex trade promotions – Deviations, depletions and other trade-related incentives have a significant impact on the bottom line and tracking and accounting for them can be costly and complex.