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Foodservice Industry News

Franklin Foodservice Solutions, Inc. Blog

Who Cares About Redistribution?

Posted by Dave On February 8th

iStock 000016667632XSmall Who Cares About Redistribution?

This is the fourth installment of Advanced Issues in Redistribution which can also be downloaded from our free eBook library.

It should be obvious to you by now that I’m a “redistribution geek.” Over the past two years, I’ve published a couple of books, led several seminars and workshops, and written these monthly commentaries about a subject that leaves a lot of people glassy-eyed. The truth is…

I enjoy the opportunity to make clear what often seems complex, counterintuitive, and confusing, and in the process help manufacturers improve their business results.

Lately it seems that a lot of other people are showing a renewed interest in the topic. At a recent I conference, I was intrigued by the amount of attention given to redistribution by the national operator chains. Perhaps spurred by record fuel costs, the chain people are eager to understand the cost and service ramifications when “their products” move through a redistributor. It’s a smart move on their part, and yet another sign of the growing importance of redistribution.

Similarly, Foodservice Sales and Marketing Agencies are looking into the effect of redistribution on their business operations. Whether it’s how Sysco reports shipments to local OpCo’s (and thus how agencies get paid), or how billback paperwork will flow when contract-priced products go through a redistributor, the agency business is going to feel the impact. We’re working to help them understand what’s coming, and how to respond.Advanced Issues in Redistribution 231x300 Who Cares About Redistribution?

If you’re not thinking about these issues, chances are there’s a lot going on in your business that will surprise you. Not everyone needs to become a redistribution geek, but now is a good time to take another look at how redistribution will impact your business in the coming years.

Are you looking for Cost to Serve Experts to help you with your business? Look no further. We are here to help you understand your supply chain costs, tune up your prices and programs, and build your bottom line. Call (239) 395-2787 or follow Franklin Foodservice Solutions on Twitter. Keep in mind that you may also download one of my other free eBooks about redistribution: Top 10 Mistakes Food Manufacturers Make in Food Redistribution.

- Dave

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