Technomic Study Reveals Untapped Cost Savings for Foodservice Broadliners
Study Shows How R3®-Distributor Category Management Collaboration Promotes Business Growth
ST. LOUIS, June 28, 2013 – A recent Technomic study incorporating R3 Reliable Redistribution Resource® business insights revealed that the foodservice broad-line distribution segment could save at least $600 million in upstream supply chain costs by effectively using redistribution logistics. Inbound freight savings was one of several findings in the study that quantifies redistribution’s positive economic impact on the foodservice industry.
R3®, a leading North American redistributor of disposable operating products and related services to distributors in foodservice and other industries, contributed its insights and a case study to the Technomic Foodservice Planning Program study, “Best Practices in Supply Chain and Redistribution.” Technomic interviewed industry supply chain professionals, reviewed numerous “Cost to Serve” studies and performed extensive analysis on redistribution in the foodservice value stream.
“Redistribution has been around since before foodservice even knew it had a supply chain,” said Technomic Consulting Principal Barry Friends. “Yet, in the absence of activity-based costing, many fail to understand its potential to reduce total ‘Cost to Serve’.”
Technomic Executive Vice President Gary Karp cited R3®’s category management relationship with a super-regional foodservice distributor as a “reduced inventory” best practice, further noting that the positive impact on the distributor’s sales, asset utilization and profitability led to a successful company-wide expansion.
“R3® values the factual information and analysis that this study provides for the foodservice industry,” said R3® President Earl Engleman. “We are pleased that Technomic chose to include our case study to show how collaborative category management can benefit redistribution customers. This and other important collaborative work, such as optimizing space and logistics processes, will reduce a distributor’s total ‘Cost to Serve’. By using this best-practice model, we help drive increased profits and greater customer satisfaction throughout the supply chain.”
About R3®
R3 Reliable Redistribution Resource® (www.r3redistribution.com) supplies a range of products including food packaging, disposable supplies, and cleaning and safety products to distributors in the foodservice, janitorial/sanitation, industrial/safety and healthcare industries. Based in St. Louis, Mo., R3® focuses on increasing distributor profitability from more than 70 distribution centers throughout North America. R3® is part of Bunzl Distribution, the largest division of London-based Bunzl plc, an international distribution and outsourcing group publicly traded on the London Stock Exchange (BNZL).
Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.
