Tuesday 15 December 2015

Stuff you need to know about Food Distributors

Maintaining a food distribution business is quite a challenging task as it has to deal with the clients' stocks, supplying and transporting costs, etc. Whether you're dealing with beverages, meats, produce or non-perishables, you ultimately have to be meticulously organized while managing data, giving no room for errors as it can cost you your business and reputation.



Food Distributors: What do they do?
They basically bridge the gap amidst ranchers, farmers, food processing companies and grocery stores, food retailers and restaurants by selling food. While local food distributors operating on a small scale connect to only a specific retailers'/suppliers' group, those operating on a massive scale have thousands of customers.It is important that they meet and expect changing needs, make their respective deliveries efficiently and punctually.

Food business owners: What you need to know?
There is a lot more to distributors than just selling your product.Here are some key truths you need to know -
  • You have plenty of options
There are many representatives who want you to dance to their tunes by getting things done at their convenience. This way they get a control over your spending and they might also suggest stuff you don't need or trying to get rid of.Ensure they have an online option to place orders, do product search and also do budgeting.

  • Beware of prices
Make sure that all your purchases are tracked so that you can keep a tab on rising costs. You can also question accordingly if anything seems higher. This will expose the rep if they are hiding something.

  • Sales representatives vs. food representatives
Never get influenced by a confident sales rep; his/her work is to make sure your business is meeting the demands, especially if there are common products to buy. So you make sure that you requirement is fulfilled and don't get carried away by their offers.

Whenever you are purchasing food for a single event, you need to understand your power, especially in case you place large orders. Make sure the quality is checked thoroughly and never hesitate in asking tough questions. Ultimately, the fact of the matter is to provide good quality food to your customers, while you minimize the strain on the pocket. There are some branded company providing high quality food in a very reasonable rate. You must do a little survey to find the best dealer who can fulfil your requirement.

3PL – what does it mean?

No, it is not a brand! It is an abbreviation for third party logistics (3PL), which is a service that allows one to outsource active logistics right from warehousing to delivery, thus enabling them to focus better on their business. They do plenty of stuff including warehousing, order fulfillment, transportation, inventory forecasting, picking and packing, packaging & freight forwarding.


Benefits
As a blossoming business, marketing, sales and product development is all that you need to worry about with third-party logistics service around. Here are some benefits -


  • Get instant expertise in the field
If you’re a new kid on the block, nobody can take better care of you than a 3PL, who are absolute professionals in this field. It is extremely challenging to manage warehousing, shipping and customer fulfillment, all at the same time and what better choice than have an expert deal with it.

When it comes to international selling, 3PLs do the entire process from documentation to delivery, thus saving you a lot of headache trying to understand complicated rules of each and every country. In short they are the right person to solve all complex issue and ensure a smooth delivery within time frame.

  • Generate cost savings
Warehousing needs you to have your own staff and space and you don’t have to bother about all this if you have a 3PL take care of this. In addition, there are companies that offer great inventory forecasting, helping you improve your inventory levels in order to save more money.

Choosing the ideal 3PL
It can be quite an overwhelming process to choose a final provider. You therefore need to make sure you’re wise in assessing the company you choose to invite dealing with your business. And they better be good! Here are a few tips -

  • Current vs. forecaster volumes
Make sure the 3PL you choose can handle a bulk amount in case you add it in the last moment in addition to your current volume. You want a trustworthy logistics provider that can handle your business faithfully in both your rosy and thorny situations.

  • Well-suited technology
Make sure your systems match and are compatible. You need to choose one that has similar cutting-edge technology so that both your systems are easily integrated. In other words, you both need to be on the same page in terms of the technology.