Restaurants, cafes, grocery stores, catering companies, and even schools, businesses and offices. There are many entities interested in the services of food wholesalers. The demand for comprehensive wholesale services is huge throughout Europe and is not decreasing at all! And no wonder - cooperation with a professional supplier can be very beneficial. However, as with everything, ordering food wholesale should be approached sensibly.
What should be the basis for an effective cooperation strategy with a food wholesaler?
Demand for food wholesalers
The interest in food wholesalers in Europe is considerable and does not decrease at all. What's more, professional suppliers are constantly trying to expand not only their range, but also the range of services. Food wholesalers often direct their offer not only to institutional customers, but also to retail customers.
Why is the interest in the wholesale offer so high? First of all, in one place we gain access to a diverse assortment: from sweets, through meat, vegetables, coffee, to alcohol, breakfast cereals and spices. Secondly, prices in wholesalers are much more favorable than in ordinary stores or even - paradoxically - in the case of direct purchase of goods from manufacturers. Thirdly, many professional wholesalers offer comprehensive services of product packaging, collective packaging, as well as shipping and delivery of goods, even abroad.
The basics of an effective food ordering strategy in a warehouse
An effective wholesale ordering strategy can help ensure consistent supply and minimize costs. Here are some basic tips that can help you develop an effective ordering strategy:
- Demand analysis - before you place an order, it is worth carefully analyzing your needs. In this way, you will be able to determine how many products you need, in what quantity and how often. If you run a shop, apart from a standard analysis of demand (for basic products that are the “core” of your offer), it is also worth conducting a qualitative and quantitative analysis of the market. This will allow you to adjust the offer to the customer's expectations on an ongoing basis, and this may translate into higher profits.
- Procurement planning - based on the demand analysis, it is worth preparing a procurement plan. This can be done based on monthly or quarterly sales forecasts.
- Preparation of the list of products - after making an order plan, prepare a list of products you want to order. It is worth making sure that the list includes only those products that are necessary.
- Comparing offers - before placing an order, it is worth comparing the offers of various wholesalers and choosing the one that offers the best prices. You should also make sure that the wholesaler you choose has the right level of product quality and delivery time. Even the simplest spreadsheet can help you collect data clearly.
- Setting a minimum order quantity - some wholesalers may set a minimum order quantity. It's a good idea to check these requirements and determine the minimum order quantity that is needed for the order to be fulfilled.
- Inventory monitoring - it is important to constantly monitor inventory and order products on time to avoid a situation where the lack of a given product prevents a sale.
- Verification of invoices - after receiving an invoice, it is worth checking carefully whether all ordered products have been delivered and whether the prices are in accordance with the contract.
- Results analysis - Regular analysis of procurement results will help identify possible improvements in the ordering process, which will increase efficiency and reduce costs. It is worth learning the basic statistical methods used in data analysis, such as the average or standard deviation, inductive, reduction or deductive method. Remember that an effective ordering strategy in a warehouse requires proper planning, monitoring and analysis of results. Thanks to this, you will be able to minimize costs and increase profits.
What else is worth knowing?
In addition to the basic elements of the strategy, it is worth being aware of the specifics of the operation of food wholesalers. When considering starting cooperation with a distributor, it is worth checking what conditions of cooperation he offers and how he approaches the customer. First of all, make sure that:
- The wholesaler offers a trade credit (deferred payment option);
- The wholesaler allows you to view the goods on the spot, get acquainted with the storage conditions of the products in the warehouse and check the products on request;
- Provides XML or CSV files with the assortment;
- The quality of photos, descriptions and product parameters provided by the wholesaler is appropriately high;
- The wholesaler offers retail sales and, if so, what is the difference in wholesale and retail prices.
It is also worth being aware that many wholesalers approach the client individually, adapting the offer to the scope and expected length of cooperation. Few novice entrepreneurs know that a significant part of distributors is open to negotiating wholesale prices. And such discounts, with long-term cooperation, can be very beneficial for you!
Is it better to use domestic or foreign wholesalers?
The advantages and disadvantages of using domestic or foreign food wholesalers depend on many factors, including the specificity of a given company's operations, its needs and preferences. The choice between domestic and foreign wholesalers depends on individual needs and preferences. Weigh the pros and cons of both options and then make an informed choice based on your specific business needs.
The advantages of domestic wholesalers include easier contact and negotiations with suppliers due to the knowledge of the language and business culture. Deliveries are also more stable as there are usually no problems with logistics, transportation, customs and similar international issues. Many entrepreneurs also believe that using the services of a domestic supplier is also a greater guarantee of food quality and safety, because the products meet national quality and safety standards. The dimension of economic patriotism is also important: supporting local producers and the food industry. However, cooperation with domestic wholesalers is not without its disadvantages. These include (paradoxically) higher prices and a smaller selection of products.
Foreign wholesalers may seem interesting, especially due to a wider selection of products (possibility to purchase goods not available in the country), potentially lower prices (which do not necessarily mean lower quality), or access to products with unique flavors and aromas, characteristic of the country's cuisine.
Using the services of foreign wholesalers is associated with some fear of logistical and transport difficulties (costs, customs duties, food safety) and complications resulting from cultural and language differences. It is therefore worth using the services of professional wholesalers who direct their offer to foreign customers from above - such as the Polish wholesaler Jawis. Such wholesalers have representatives who communicate in different languages and offer comprehensive transport services, so you no longer have to worry about logistics.