What is redistribution and its benefits?
Without redistribution, manufacturers would produce certain products in their plants and then move them to forward warehouses or company distribution mixing centers, and then on to food distributors (large and small). These distributors then deliver the products in smaller quantities to the restaurants. Many distributors cannot cost-effectively utilize inbound truckload (TL) velocities, and therefore the system uses a more costly less-than-truckload (LTL) transportation on certain slower moving items. In contrast, with redistribution in place, manufacturers can efficiently ship truckload quantities to the redistributor, CDC, who then can ship full (mixed) truckloads ofproducts to the distributors. Most or allhigher cost LTLs are removed or reduced.This increases the distributors’ inventoryturns and dramatically increases the efficiency of theentire foodservice supplychain, therebyreducing costs.
