Summary
Given the industry issues and challenging margins, Operational Excellence (Continuous Improvement) is an appropriate next step for the food service distribution industry.
Analysis
The food service distribution industry has tons of opportunity for operations cost and service improvements. The source article mentioned technology was the likely next step in dealing with increased margin pressures. The food service industry should consider operational excellence as a strong alternative to improve distribution functions. Sample tactical projects could focus on delivery scheduling, route planning, supplier coordination, packing waste, maintenance scheduling, energy planning, staffing improvements, demand planning, etc..
Leading edge thought leaders such as Johnson & Johnson, General Electric, and Motorola have successful implemented strategic and tactical operational excellence programs in their supply chain functions. Combined these three companies alone have saved billions of dollars by implementing best in class operational excellence programs. Traditional operational excellence programs are less expense than technology solutions and should be strongly considered as a first step for improving service and reducing costs.
