What is food distribution? Important points, ideas and challenges
Distribution and distribution of food is the process of collecting products from producers, storing them in conditions suitable for the type of goods and finally distributing food among all types of food chain stores, restaurants, hotels and similar places, according to a standard process. Food is not necessarily limited to edibles and can include products necessary for food consumption; Like dishes, napkins and cups.
Food distribution is a subset of distribution and during this process, it is important to comply with the unique standards of each product. Failure to pay attention to these issues can cause many problems (including causing diseases and food poisoning) and will end up at the expense of the producer, distributor and consumer.
How does food distribution work?
Distribution of food products requires three infrastructures:
Transportation infrastructure for moving goods (such as vehicles, roads, airports and ports)
Technology for handling and storage, appropriate to the type of product (including refrigerators , equipment and warehouses)
Sufficient and required resources based on demand (desired goods and products)
When distributing food, in addition to transportation, storage conditions should also be considered. For example, the storage conditions for seafood, vegetables or dairy products are different from each other. These differences are sometimes so great that some manufacturers cooperate only with a certain type of distributor that has the conditions for storing and transporting their products. Often distribution companies work independently, some of them have warehouses to store the products prepared until the time of sale or delivery. They have to chain stores, retailers and consumers. Others are equipped with refrigerators and deliver food directly to the retailer or consumer. Many distribution companies are wholesalers, producing products and then marketing them to sell.
What is the importance of food distribution?
A supermarket never has the time, access and ability to communicate with every single food product manufacturer! Imagine if each store wants to send representatives to different areas, such as farmland, to negotiate for the purchase of their products! On the other hand, a farmer does not have enough variety and volume in his products to be able to communicate with individual grocery stores and retailers. Distributors are the bridge between retailers and manufacturers. They buy the products, store them and sell them to vendors in the required volume. Studies show that sometimes up to 32% of food is lost during transportation. Also, perishable goods spend about half of their consumption life in the transportation process. Every year, billions of dollars of food is wasted just because of poor transportation and spoilage during transit. This hurts businesses, destroys usable food that could feed many people, and affects the environment. For this reason, for consumers, producers and all intermediaries, the distribution of food and its distribution is of undeniable importance.
Types of food distribution
Generally, there are two types of distribution:
Distribution by traditional methods, through registered contracts with wholesalers
Capillary distribution which is more efficient, more practical and more modern and of course brings more profit for the business. In capillary distribution of food, all intermediaries are removed and the products reach consumers directly.
Carrying and cash distribution: In this method, distributors provide warehouses for visiting, selecting and selling food. By visiting these warehouses, the consumer obtains the food products he wants. Redistribution: In this method, food products are not sold directly, but are purchased from the manufacturer and sold between smaller distributors who do not have the ability to buy wholesale. .
Specialized Distribution: Distributors who specialize in transporting a specific type of product and have the appropriate equipment for those products, only distribute the same food products.
General Distribution: This form of distribution to Distribution of all products in high volumes, with significant benefits and discounts.