Although delivery and distribution are synonyms, food delivery and food distribution services are very different terms. Delivery services refer to online orders from restaurants that are delivered to the address. On the other hand, food distribution is associated with wholesale sales of food products that companies order. Businesses that serve food or sell it to retail customers need reliable partners who offer food distribution services. They have the option to either work with broadline distributors or with specialized suppliers that focus on a specific niche market. Examples of specialized wholesalers include produce distributors or wholesale seafood suppliers. Although logistics and delivery are the two main services offered by wholesalers, there are multiple other solutions they can offer to companies. In the following paragraphs, we’ll share more about the services offered by food service and grocery store distribution companies.
Key takeaway: The main food distribution services are bulk deliveries of products and product sourcing. Other popular services offered by some wholesalers include training programs, marketing support, and private label services.
What Services Do Food Distribution Companies Provide
The main food distribution services are, of course, logistics and bulk deliveries of food products. However, there are many additional solutions that suppliers can offer to their customers. Here are some of the main food distribution services.
- Product sourcing. New products hit the market daily. As such, businesses might expect their suppliers to also offer product sourcing services. That’s especially in fields such as gourmet and specialty foods or beverages.
- Inventory management. The biggest broadline food distributors can also offer inventory management services (check out our article on what VMI is) that make the process easier for their customers.
- Order customization. Customized products can improve the customer experience and allow companies to increase their profit margins.
- Branding and private label services. In recent decades, services such as white labeling, co-packaging, co-manufacturing, and private labeling have allowed businesses to easily sell products under their own brand. Companies that offer food distribution services might also offer private labeling. If you’re interested in the ways large companies do it, check out our posts about Walmart’s private label and Target’s private label brands.
- Marketing. Suppliers benefit if their customers grow. That’s why they might offer marketing and sales support. This includes targeted advertising, promotions, market insights, and assistance with merchandising.
- Training. Some wholesalers also offer courses and training programs for their customers. For example, wholesale coffee distributors organize latte art classes and brewing training for their customers’ staff members.
- Import and export. Many companies aim to find suppliers that are also knowledgeable in food import and export. This allows them to source products from different regions of the world or export their goods to other countries.
Main Types of Food Distributors
When we talk about food distribution services, we can also examine the main types of wholesalers in the wholesale distributorship sector.
- Cash-and-carry distributors. Companies like Chefs' Warehouse give businesses the opportunity to buy wholesale products at their physical stores. A lot of the big suppliers offer both deliveries and cash-and-carry services.
- Food broadliners. These companies don’t focus on a specific food category. Instead, they offer a wide range of high-demand products. In addition to selling food products to retailers and restaurant businesses, they also sell supplies and other goods. Broadliners can also offer food distribution services like warehousing, inventory management, and product sourcing.
- Specialized suppliers. These companies focus on one or a few product categories. For example, specialty food suppliers offer a wide selection of gourmet and specialty products. Coffee wholesalers import, roast, and blend coffee from different regions of the world. The benefit of partnering with specialized distributors is their knowledge of their sector.
- Redistributors. They act as intermediaries between manufacturers and small suppliers. Redistributors play an important role in the food supply chain. Redistributors specialize in B2B sales to smaller suppliers that wish to increase their product catalog but don’t have the negotiating power or leverage to partner directly with manufacturers.
5 Major Food Distributors
There are more than 27,400 companies in the US that offer food distribution services. Most of them are local suppliers that specialize in a single product category. They aim to gradually expand their delivery network and product catalog. Let’s examine some of the major food suppliers.
- Sysco is the biggest broadline food distributor in the world;
- US Foods is considered to be the best wholesale food supplier for restaurants;
- Performance Food Group has a network of more than 150 distribution centers that service over 300,000 customer locations;
- WEBstaurant Store is known for its popular eCommerce platform which allows users to easily compare prices and find the right products;
- Chefs’ Warehouse offers a wide range of goods but is primarily focused on specialty products.
Frequently Asked Questions about Food Distribution Services
If you wish to know how to open a grocery store or what is broadline distribution, you will find many valuable articles on our website. BlueCart is committed to helping businesses not only with its high-end wholesale distribution software solutions but also with informative posts and resources. Below we’ve answered some common questions regarding food distribution services.
What Are the Trends in Food Distribution Services?
As a growing number of consumers search for sustainable and organic food products, distributors aim to source goods that fall under this category. This is one of the main trends in food distribution in recent years. Additionally, food distribution companies have increased their integration of powerful software solutions. Thanks to them, distributors can improve inventory management, reduce food waste, and enhance their profit margins. Retailers and food service companies expect their suppliers to improve the efficiency of their food distribution services. Another trend to keep in mind is the increased demand for specialty food products. It has led wholesalers to increase their product sourcing capabilities.
How to Choose a Food Distribution Company?
Choosing the right suppliers depends on various factors. Different types of businesses have different needs. Thus, although many companies prefer to work with one broadline distributor, for some it might be more beneficial to partner with specialized wholesalers for different product categories as they have lower MOQ. Another thing to consider is the combination of wholesale prices and product quality. Although some broadliners might have lower prices, if the quality of their products is lower, this can lead to additional food waste costs. Make sure to check the services offered by different food distribution companies. They should be aimed at streamlining the delivery process and assisting your business.
What Software Do Food Distributors Use?
ERP systems are among the most important software solutions used by food distributors. They integrate various functions and help suppliers streamline their operations. Other software types used by food distributors:
- Warehouse management systems that optimize warehouse productivity and storage operations.
- Web and eCommerce platforms where US food distribution companies can share their products and easily update them.
- Order management solutions that track order status across multiple food distribution channels.
- Compliance software related to HACCP or FSMA regulations.
- Inventory management solutions help suppliers have optimal stock levels, forecast demand, and manage their inventory optimally.
Sell Products and Optimize Your Wholesale Business with BlueCart
By partnering with BlueCart, you can showcase your products to thousands of business customers all across the country. That’s why our platform is among the main wholesale distribution software solutions. Schedule a free demo and find out why business owners and managers across the USA benefit from BlueCart’s powerful solutions.