Transform Redistribution from a Headache to a Competitive Advantage
May 18, 2023
Welcome back to our series, Managing Complexity for Maximum Value, where we aim to help you optimize your supply chain for greater efficiency and profitability. In the previous weeks, we discussed strategies such as leveraging the right transportation modes, adding rail in your transportation mix, utilizing advanced data modeling and lowering last mile costs. This time, we delve into the challenges of managing redistribution.
Redistribution can present a significant challenge for food service distributors, as slow-moving or promotional products require careful management to balance storage, distribution and budget concerns. From seasonal frozen food items to non-food items like napkins and cleaning supplies, these products can require large minimum orders and must be managed efficiently to avoid waste and minimize costs. Let’s explore optimizing product flow and ensuring that redistribution items are available when and where they are needed in your supply chain.
The Advantage of Inventory Optimization
Redistribution products can be anything from seasonal frozen food items for a holiday sale to non-food items like napkins, straws or cleaning supplies. They often require large minimum orders but are used in smaller quantities over a longer period. The key to managing redistribution is optimizing product flow to ensure that items are available when and where they are needed.
Unlike other logistics partners, Lineage offers a unique solution to this challenge. Each year, the company purchases more than $4 billion in redistribution inventory to ensure that customers have products available where and when they need them most. This approach not only helps to optimize inventory levels, but it also provides financing, storage and distribution to make redistribution easy for customers.
One of the main advantages of working with Lineage is the assurance of a readily available supply of products. This assurance has been especially valuable during recent supply chain challenges, where many companies have faced significant disruptions and delays. With Lineage's extensive network of temperature-controlled warehouses and transportation options, customers can rest easy knowing that their redistribution products will be available when they need them.
Moreover, Lineage's team of experts can help customers identify hidden costs in their supply chain related to redistribution. By optimizing inventory levels and providing affordable delivery when the time is right, customers can save money and improve their bottom line.
Don't Let Redistribution Be a Challenge
For many food service distributors, the challenge of redistribution is a significant one. However, with Lineage's unique solutions, it doesn't have to be. By providing a one-stop shop for financing, storage and distribution, Lineage can help customers optimize their inventory levels and ensure a readily available supply of products. Furthermore, with real-time tracking and data analytics, customers can monitor the progress of their redistribution products at every stage of the journey, from the supplier to the end customer. Don't let redistribution be a challenge – let Lineage help you optimize your supply chain and improve your bottom line.
Don’t miss the upcoming conclusion to our Managing Complexity for Maximum Value series!