The food industry is a complex network of different businesses involved in bringing products to market. Many different methods in the manufacturing and transportation process can cause success or intricate problems in the supply chain.
Technology and government regulations have added to the speed and constant changes in the foodservice industry. These factors create new challenges for new and existing businesses specializing in food manufacturing and distribution.
With all the uncertainty surrounding the foodservice industry, here are a few tips to help manufacturers and distributors thrive:
Complexities of the Food Supply Chain
Most people think of restaurants and stores when they think about the foodservice industry. These types of businesses are just a very small part of a larger and more complex food supply chain.
There are many companies and system in place that ensures food reaches restaurants, stores, and shoppers.
Here are a few of the businesses responsible for helping the foodservice industry run smoothly:
- Manufacturing representatives manage the sales process and sell a variety of foods to stores and restaurants. They work and report directly to the manufacturer and are also known as food brokers. Logistics and deliveries are made to the stores by specialized delivery companies or wholesale distributors.
- Wholesale distributors take care of selling, storing, and delivering products to stores. They also help with in-store marketing.
- Foodservice representatives work to sell food directly to restaurants. The difference between manufacturing and foodservice representatives is that foodservice reps do not store or deliver food products. They also do not work on logistics.
- Self-distributing retailers are the larger chain stores like Target, Whole Foods, Trader Joes, and Walmart. These retailers generally have their network of wholesale distributors in key regions throughout the country. They also have their transport systems.
- Wholesale foodservice distributors buy and sell food, work on logistics, and transport food from the manufacturer to the store or restaurant for storage.
There are also self-distributing food service companies like Burger King and McDonalds. These large national fast-food chains have their foodservice distribution network.
Safety And Regulation In The Food Industry
In the food industry, safety is a huge concern to all stakeholders and regulators. Government regulation of the food industry is a standard and federal regulatory bodies include the USDA and the FDA. There are also state and local agencies that work with the federal government and together to establish food safety standards and ensure everyone in the food supply chain adheres to these standards.
These food safety standards govern how food is handled, distributed, and manufactured in the U.S. Globally, some similar regulators manage the food supply and systems. Because the food industry is global and much of the food in the United States is shipped from other countries, technology is used to improve food safety, logistics, and supply chain management. Click here to learn more about how an ERP can help track every aspect of your business in real-time.
Also, as people become more conscious of the foods they eat, greater pressure and regulation are required to label foods for genetic modifications. Labeling is also an important issue for organically grown produce, and all-natural foods. There is also the issue of proper labeling for possible food allergies.
Food Industry Technology
Technology plays a key role in the food industry. There are large scale businesses with mobile apps that offer food delivery nationwide for consumers. Groceries and restaurant meals can be ordered around the clock and delivered with personalized service.
This kind of technology also has the potential to manage almost every aspect of the food supply chain from manufacturing to distribution and logistics.
Pay Attention To The Future Of The Food Industry
The food industry is a fascinating network of businesses working together to create an environment that ensures consumers have access to safe and nutritious food.
