Overview of the Wholesale Food Distributors Industry
The global wholesale food distributors space is witnessing a promising growth characterized by the rising global populations and the growing demand for food due to the rising disposable incomes. The industry at large comprises of 35,000 establishments that aim at distributing food and related products on a wholesale basis. The growth factor in the wholesale food distributors space can be attributed to the four I-engines; such as internationalization, integration, innovation, and implication. With the altering preferences of the customers, prominent distributors are facing the need to design their marketing and advertising campaigns to bid for a lucrative market and keep pace with the customer trends.
Although the wholesale food distributors space is witnessing a promising growth owing to the rise in mergers and acquisitions, some prominent factors that may influence the growth of the market over the years include:
- Increasing demand for organic products: In the wholesale food distributors space, the food products are sold in a wholesale basis, but when it comes to the organic products, the shelf life of the products will get affected. With the increase in the demand for organic products, it becomes essential for organizations to maintain better packaging techniques to retain the shelf life of the products.
- Increasing labor and transportation costs: The recent economic slowdown has greatly affected the transportation and labor space in terms of the fluctuations in the fuel prices. So, organizations are facing relentless pressures to cope with increasing labor charges while maintaining consistency in the products offered. Moreover, organizations should also ensure the need to maintain compliance requirements with the utmost quality in the products.
To counter these challenges and understand the latest trends in the wholesale food distributor space, organizations are leveraging category market intelligence solutions. Category market intelligence helps businesses gain timely, relevant information about the market and their competitors. Moreover, the solution also helps companies gain pro-active information on the cost and market dynamics, indirect spend, and logistics activities.
The Business Challenge and Our Journey
The client, a prominent wholesale food distributor wanted to understand the demand for commodity prices and gain timely insights into the market to create effective sourcing strategies. With the help of a category market intelligence solution, the client wanted to spot early warning signals and minimize the supply chain disruptions. The primary concern of the client was to understand robust variables in terms of the pricing changes, entry of new players, and regulatory changes in the wholesale food distributor space.
To understand the macroeconomic changes in the wholesale food distributor space, the category market intelligence experts at SpendEdge carried out extensive research methodology. The research methodology comprised of interviews and discussions with prominent stakeholders in the wholesale food distributors space. The experts also compiled information from reliable sources such as trade shows and company presentations to maintain a category plan development.
The category market intelligence solution offered by SpendEdge helped the wholesale food distributors effectively understand the latest trends and developments in the supplier space. The solution assisted the client in assessing the potential risks in the market and accordingly devise procurement best practices to improve the supplier performance.
Fundamental questions answered in this category market intelligence include:
During the course of the engagement, the wholesale food distributor was able to identify the technology trends and innovations and gain more relevant insights into the buyers’ behaviors. The engagement also focused on achieving operational efficiency while focusing on robust technologies to enhance their product innovations.