Q : Identify a food distribution company importing food into the United States from other countries. Discuss how the challenges and emerging trends detailed in this article apply to that company.Article Link: http://www.werc.org/assets/1/workflow_staging/Publications/650.PDF Writing requirements: Pls write a page (not less than 250 words. Could be more, it is up to the completion of the task) on the above-mentioned topic. All research resources used should be cited in APA style. The question relates to the supply chain subject and the challenges in Food Distribution Firms. Attached are two classmates posts; they need two solid replies. Thank you.
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Post 1 (E): According to the article 2007 Food Logistics Industry Report, food
distribution companies have faced numerous distribution challenges. These challenges
include driver shortages, highly fragmented truck transportation, seasonal and highly
perishable products, and high consumer expectations and demands (Saddle Creek
Corporation, 2007). This leads to a highly fragmented distribution, as well as overstocked
and understocked items, which cuts into the companies bottom line.
In the article 2007 Food Logistics Industry Report, some interesting, emerging
trends that deal with distribution challenges are cross-docking, bar-coded pallet tags to
manage inventory, and RFID (Radio Frequency Identification) for a pick method (Saddle
Creek Corporation, 2007). 43% of respondents in the article use cross-docking finding that it
helps streamline demand (Saddle Creek Corporation, 2007). Bar-code pallet tags and RFID
help manage inventory and distribution of products more efficiently. This creates a customer
based and less costly operation.
Another challenging and growing demand trend in the food industry is online-only
grocery shopping. FreshDirect, Peapod, AmazonFresh, Ocado, Albertstone, Walmart and
Instacart are examples of current companies with online ordering (Duff & Phelps,
2016). Instacart provides doorstep deliveries offering 300,000 items from stores such as
Whole Foods, Safeway and Costco, available for order straight from your mobile device
(Duff & Phelps, 2016).
Real-Time data is also mentioned in the 2007 Food Logistics Industry Report, as a
way to allow companies to become more customer based and create value-added products. In
2012, Kroger implemented QueVision, which predicts long-lines before they happen using
real-time data (Duff & Phelps, 2016). This has cut the wait time in lines down to 30 seconds
(Duff & Phelps, 2016)!
Already, large chains such as Kroger and Albertsons have been able to grow and
leverage fixed infrastructure costs and optimize their capabilities. Kroger’s size and scale
gives it a competitive advantage, with optimal efficiency within its private label
manufacturing, distribution network, and is able to offer more competitive pricing due to its
purchasing power with suppliers (Duff & Phelps, 2016). Albertsons also leverages its scale.
It’s produce department cuts up fresh fruit and vegetable offerings daily (Duff & Phelps,
2016). Larger players have been more open to operating a broad spectrum of store ideas,
whether in house or by acquisition. By being more receptive to ideas, these stores leveraged
their infrastructures to increase sales, margins and investment returns (Duff & Phelps, 2016).
References
Duff & Phelps. (2016). Industry Insights: Food Retail Industry Insights-2016. Retrieved
from:
http://www.duffandphelps.com/assets/pdfs/publications/mergers-and-acquisitions/industryinsights/consumer/food-retail-industry-insights-2016.pdf
Saddle Creek Corporation. (2007). 2007 Food Logistics Industry Report. Retrieved from:
http://www.werc.org/assets/1/workflow_staging/Publications/650.PDF
Post 2 ( A):
Sustenance Logistics Industry Report takes note of that a developing pattern for nourishment
merchants is littler or fractional shipments. Clearly it isn’t exceptionally effective for the
production network to have incomplete shipments, so it’s a test for some. Robinson Fresh, a
worldwide produce organization, trusts that it is urgent for organizations to not concentrate
on the wastefulness of halfway shipments, yet rather the potential chances to enhance their
inventory network. Buyers purchasing propensities are constraining sustenance wholesalers
to be more adaptable in conveyance as request volume and recurrence will be eccentric. To
defeat these issues, Robinson Fresh is breaking down the requests, making arranged
situations however much as could be expected, and utilizing merged focuses for
dissemination (Gabrick, 2016).
As per Grocery Manufacturers of America (GMA)around 23% of the US nourishment supply
is foreign made. This number expanded by 40% somewhere around mid nineties and 2005
and keeps on developing. They have reported that 60% of the products of the soil, and close
to of the fish expended in the US are foreign made. This is profoundly determined by costs
and buyer decisions. One noteworthy test that sustenance circulation organizations face,
however the 2007 Food Logistics Industry Report didn’t specify, is nourishment pollution
that can then additionally prompt sustenance borne sicknesses for purchasers. Tainting can be
considerably more hard to control with imports. So organizations are searching for
approaches to anticipate sustenance pollution in the production network by recognizing
potential wellsprings of the issue. Shoppers are additionally requesting more
straightforwardness of the sustenance they eat, from both a wellbeing point of view and
additionally dependable reaping rehearses. To meet purchaser requests, sustenance
wholesalers need to make this data more straightforward and show how they function
intimately with the ranchers to give maintainable and safe nourishment to buyers.
The 3PLs in sustenance appropriation are being required to taking after the developing
patterns of cross docking, innovation, and enhanced data partaking so as to hold clients like
Cargill, Kellogg, and Pinnacle Food Groups (Saddle Creek Corporation, 2007). They should
have the dock space required for expanded cross docking. They should be able to react to a
minute ago regular shipments.
References:
2007 Food Logistics Industry Report. (2007). Saddle Creek Corporation. Retrieved from
http://www.werc.org/assets/1/workflow_staging/Publications/650.PDF
Gabrick, Steve. (16 June 2016). Turn Your Perishable LTL From “Necessary Evil” to
“Supply Chain Enabler”. Robinson Fresh. Retrieved from
http://blog.robinsonfresh.com/fresh-produce/turn-your-perishable-ltl-from-necessary-evil-tosupply-chain-enabler
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