The wholesale distribution industry is changing with time as modern and innovative ideas and concepts are making their way in. These changes are not only revolutionizing the industry but also trying to fulfil the need for advancement. To fully understand what are these advancements and their potential impact over the industry we have to first understand the wholesale industry in general.
There basic idea behind wholesale distribution is:
Acquiring goods in bulk and then supplying them to major retailers, supermarkets and even local business owners.
Wholesale Food Industry
In this article, we will be going to talk about the wholesale food distribution industry which is basically,
Supplying the food items in bulk to the independent restaurants and hotels according to their demand on a weekly or monthly basis.
The wholesale food industry is a very big market and holds a major share in a country’s economy. According to general stats, the market growth rate is 2.5% per year. After considering this we can say that without improving the industry with the latest and efficient processes one cannot survive in this business. Now, we will discuss what are the potential benefits of using wholesale food delivery system and some challenges?
Convenient and Reliable
Another way thewholesale food suppliers are helping restaurant owners and chefs is that when they deliver in bulk maybe on weekly basis they are reducing the headache of daily food delivery which may get delayed on certain days and will cause disturbance for restaurants. So many chefs prefer the weekly wholesale food delivery because it is convenient and reliable because you have a week’s stock left in storage.
Growing products demand
The wholesale food distribution is expanding right now and suppliers have to cope with the pace of growing product demand. Now expensive hotels and restaurants may come with the special demand for a certain product from some remote places like Parmesan cheese from Italy.
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Incorporating new technology
A new major thing that is done by wholesale food suppliers is that they are implementing IOT technology in delivery trucks. What this will do is that it will maintain the temperature of the cold and chilly products and avoid the contamination and rotting of foods.
Predictive analysis from buying pattern
Another important thing that is being done is the use of big data analytics to form a probable pattern that what the chef or some restaurants will order for the upcoming week. Other than this trained sales representatives can also analyze and predict that a certain customer will order. This will fasten the process and increase customer loyalty.
Utilizing Sales data
Over the course of time, a certain wholesale distribution company collects the data of past sales and orders. They then can utilize that data in certain ways like we have talked about the big data analysis and predict their sales behaviour. Some companies are also considering the idea of selling their data to their own supplier so that they can also utilize that data to be more efficient.
Giant Marketplace as competitors
As we know that some online marketplaces are growing their business and getting into wholesale food business as well. One of the biggest marketplace Amazon is now entering in wholesale food supplying business. They do not have a big chunk in this market right now but they are a potential competitor. So, the necessary steps are to be taken to handle these business Competitors.
To conclude we can say that the earth population is increasing at a fast pace and with greater population, the demand for food will also increase and the wholesale food industry will also thrive in the future. But the challenges are also increasing for the wholesale food suppliers. To cope with the above challenges constant innovation is necessary. Handling competition and fulfilling customer’s different demands is the way to go.