Glad to be back from holiday. In April we touched on how automation would affect long term ability to grow in the food industry. The last few months have put even more pressure on the ability to hire the right people. Let’s take a look today at how the unemployment rate can affect your business.

I hope everyone had a great 4th, just relaxing by the pool or the shore guys at the beach.  Right before the holiday I read the Philadelphia Inquirer business section's article about warehousing. The Eastern Pennsylvania transportation corridor has seen explosive growth due to the way products need to be delivered: quickly, safely, and inexpensively while minimizing the carbon footprint.

Sunday, at the Fancy Food Show for opening day, as I was going through the booths I mentioned to my companion, “The show seems quiet, but it is opening day.” In today’s newsletter we’ll discuss that phenomena and what it might mean for the food industry at large.

Over the weekend we saw a lot of fireworks in the food industry.  The digital transformation we talked about just two weeks ago in our June 8th Spring Update is rushing forward. The ups and downs are on the move again thanks to a gamble by Amazon's CEO Jeff Bezos.

 

We ended last week's newsletter saying, "I have concluded that these Companies aren’t really digital firms but are Companies that use digital to transform the current business model into a different model...We have talked about transformation in markets and now these transformations will disrupt the method we get and deliver our food products." 
Today let’s look at the big 2 in Food Service and see what they’ve done with food phone ordering technology.

 

"USING THE PHONE APP TO ORDER IS EASIER THAN DIALING THE PHONE"
Lee Marvel, President of Stanley Marvel, Inc.

We all know how things can change in business and it was just back in February we discussed how food product delivery would change. Driving through South Jersey on Monday I could look at the empty malls and see physically how the Internet has changed shopping. Today we will focus on two players in this new market, one going up and going down in business.

I won't say my phone has been ringing off the hook, but I have been getting calls from some of my processors who know the date for compliance is quickly approaching. This week will will reprint our article of over a year ago to warn our readers again.

Ten years ago we talked about returns and how they can affect your ability to do inventory management. It is not a surprise that only 20% of distributors keep accurate perpetual inventory on their computer software. A lot of effort can be spent on buying and selling. But let’s discuss again what is really Eating your Margins.

 

As a young boy in Oklahoma, from '60 to '64, my favorite teams were the Bud Wilkinson's Oklahoma Sooners and Vince Lombardi's Green Bay Packers. Vince always said that football was just blocking and tackling, and the team that did it best won. That is why Paul Hornung could run that same famous sweep, and everybody knew what it was, but he scored anyway. Your business is the same.



Issue 598 - Setting the Standards

 

We'll keep following last week's thread about Inventory Management and Profitability.   Food is a very unique industry, so making sure we measure ourselves against our industry cousins is important to understand the standard we are measured against. Got to know the other guy's score to see if you are a winner. Again focusing on inventory value and getting it right is one of the two key elements of our T&E analysis.

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