Distribution channels – £ millions in 2003

The distributor performs an essential role in getting food to the operator in
the most cost effective and fastest manner.
Up to the late 1970s, most food large manufacturers had their own deicated
in-house distribution systems for the foodservice sector. The supply-chain
rationalisations that the multiple retailers started to put in place at that time,
demonstrated how the foodservice supply chain, too, could benefit from a new
approach. Out of this was born today's foodservice supply chain – probably the most
effective and efficient in Europe.
Delivered wholesalers hold the lions' share of the market but contract
distribution is a significant, and arguably the largest, route for large chain
operators. At the other end of the size spectrum, the cash and carry performs a vital
role mainly for independent operators.
But foodservice operators also source food from other suppliers. Amongst the
more significant categories are local butchers, bakers and fish retailers, which
are used for fresh foods, as well as multiples for short life and ambient
groceries. And finally, there are specialist distributors – of coffee, cheese, snacks
and many other product categories.
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