THE PRODUCTION, CREATION, DISTRIBUTION, CONSUMPTION OF FOOD

Production and Distribution of Food

Production, Creation, Distribution, Consumption of Food

Food creation, production and distribution are big business. The U.S. food and fiber scheme is the nation's biggest manufacturing sub-sector, accounting for over 12% of GDP and 17% of national employment. And food wholesaling and circulation comprises a large chunk of that - $372 billion to be exact.

Food wholesalers serve as the distribution buffer between progressively global nourishment manufacturers and the 900,000 plus nourishment retail outlets - extending from mom and pop food store shops to national supermarket chains, and everything in between. As a buffer, they allow both finishes of the food distribution supply chain to function efficiently - manufacturers can manufacture and boat their products in efficient lot dimensions while operators have get access to the vast array of goods, but are able to purchase on an “as required” daily order pattern. The challenge that food vendors face is how to balance the claims from each end of the provide string of links without forfeiting incomes and alienating trusted customers. (Wright, 2008)

As a result of widespread and fast consolidation, the industry is split up into two camps - large national/super-regional players working to recognize the efficiencies and leverage the possibilities that their dimensions boasts and, the smaller local/regional associations employed just as hard to stay comparable in their customary markets. Unfortunately, consolidation in this industry has not been translated into bigger efficiencies. (Judith, 2005)

To advance efficiencies, consign customer value, and optimize operations, global producers, nationwide and regional vendors and retail outlets need to address the following:

Evaluate Network Optimization and Vendor (SKU) Rationalization

The wave of mergers and acquisitions that cleared the global nourishment circulation industry over recent years has paved the way for important mesh optimization opportunities. In an industry where over 15,000 ...