FOOD LOGISTICS May 2019

Page 30

continued

 TALENT. Of course, to run the new technology you have to rework your operations—and possess the internal talent to run these new systems. “It’s easy to talk about foodservice trends, but not always so easy to execute thestrategies associated with them,” says Andrews. “For years, distributors have been experts at supply chain, customer service, inventory management and the like, but now they need technology know-how. One key challenge is attracting and finding the talent that can help lead and execute new strategies that involve new technologies. If you just look at e-commerce, it requires investments in IT, marketing, and e-commerce Warehouse automation, including talent that may drone technology, not exist in your must be embraced by organization distributors. today, as it might not have been a core competency. It also requires significant planning and alignment across the organization so that you can operationally support new ways of doing business.”

For years, distributors have been experts at supply chain, customer service, inventory management and the like, but now they need technology know-how.” Cullen Andrews, vice president of sales and marketing for Dot Foots

30

“The move to a broader assortment of products can impact a distributor’s sales team,” Allen explains. “It’s becoming more important for salespeople to be more consultative and understand the latest consumer foodservice trends so they can add value to their customers with their knowledge of products and consumers. Meanwhile, the more products a distributor carries, the more difficult it is for the distributor’s salesperson to be a product expert. This means they need to have the tools to help them support the customer and offer insights.”  TECHNOLOGY. When it comes to tools, analytics is playing an important role in monitoring and reporting on consumer buying trends in foodservice—and analytics are giving distributors the tools to better assist their retail customers. Distributors are also expanding their e-commerce capabilities, whether it is providing a better user experience for online ordering, or generating content on products and trends. To do this, they must integrate many disparate systems

FOOD LOGISTICS | MAY 2019

FLOG0519_26-33_3PL.indd 30

undefined / iStock / Getty Images Plus

Chiradech / iStock / Getty Images Plus

3PL

and platforms to provide a seamless user experience, and to move data from multiple systems into analytics programs that can produce value-added business insights. The other operational aspect that technology helps is time to market. “I think distributors are accepting that ‘the future’ is here,” says Allen. “Delivery drones, warehouse robots, and automated factories are not a thing of science fiction anymore. It’s vital for distributors to embrace this new technology.”

 LABOR SHORTAGES. There are also supply chain realities that impact distributors and retailers, although they don’t necessarily control them. For instance, as the need for freight transport soars, estimates from the American Trucking Associations (ATA) show trucking companies will need to hire an additional 890,000 drivers over the next decade. “According to an industry analysis by DAT Solutions, just one truck was available for every 12 loads needing to be shipped at the start of 2018, which is the lowest ratio since

www.foodlogistics.com

5/1/19 3:39 PM


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.