Logistics

Distribution challenge

Eye-catching 1
The good distributor must work with the adequate mix of products, comprising frozen, cooled and dry products

Eye-catching 2
Finished and semi-finished products availability leads to process simplification

Logistics and distribution are two great challenges that food service currently faces. There are many clients with small lots and high delivery frequency. However, Brazil stands in need of prepared network and channel expert. Wholesale is the solution for the majority of clients. “This model imposes losses for both sides. The client does not benefit from industry discounts and promotions and industry does not know the client, ignores its needs”, points out Jean Louis from ABIA. “The market is very competitive and industry is not in charge of products selling only, but also understanding the consumer yearnings”, completes. Therefore, it is necessary surveying, qualifying managerial staff, creating products, separating production lines, adjusting packing, etc. Leading industries are quite aware of sector potential and have started directing entire production lines to this market; being also included to this effort commercial and marketing areas, which develop a distinct retail dynamics.

As for retail, just the mere communication that the sales professional has media support for its product, distribution and merchandising that shelves turnover is guaranteed; as food service it is quite more complex. The professional needs to know the product and its added value in depth and must be prepared to evaluate the cost in meals preparation and its gastronomic performance. “It is being sold more than food, it is a consumption experience impacting on hundreds of people. Besides that, everyone should have a good remembrance”, says Enzo Donna, Fast & Food director, in food service specialized logistic operator. Amongst the main characteristics of products intended to food service, practicability, cost-effective relation, elimination of waste products and steadiness in meals final result must be stood out.

Such products enable more practical and faster meals serving, rendering it easier, not being necessary a visit to the market, acquisition and storage of several ingredients, sometimes perishable, besides eliminating preparation costs, which are not few nor low currently. “Each time more, availability of finished and semi-finished products leads to process simplification”, declares Jean Louis. Industries operating in food service market are in charge of establishing differentiated commercial policies for the channel, distinguishing whoseller and distributor, contracting professional to be multipliers within the industry, sales teams. “Carry out training and campaigns within greater frequency, have technical consultants at disposal of teams and clients and offer support to professionals on a daily basis, routes follow-up, are simple solutions that may bring great results”, complete Donna.

Distribution
For ABIA coordinator the good distributor must work with the adequate mix of products, comprising frozen, cooled and dry products, submit the sales and distribution team to constant training, have consultants and technical support center for clients for recipes and menus development, besides the qualification of sales team. “Other essential matters are appropriate logistics, sellers focused on client segmentation, clear agreement with industry in the marketing channel, compliance with vendors requirements performing quantitative and qualitative targets, paying bills on due time and providing market information to each supplier better perform its strategies”.

Enzo Donna stresses that the good distributor must work with all mix of industry products, have sellers in specific segments and lines, operate within reduced closed area, distribute to all points of sale, work with exclusiveness of products per categories, comply with supplier directions for the positioning of prices, provide information to allow the supplier map the market, operate as partner in supplementing market coverage, potentialize training offered by industry, sponsor promotion actions internally and marketwise, carry out technical sales and have sales team and technical consultant to demonstrate products.

Consumer is getting more demanding and, it implies market specialization. Another relevant factor is the migratory flow inversion from metropolitan areas to smaller cities, thus enabling the segment growth within the states countryside. “Business possibilities are huge. Distribution is, currently, food service great business opportunity”, completes Jean Louis.