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Global Sourcing Considerations for Food Retail Distribution

When supervising the fresh food department, it requires close attention to some crucial considerations. Such factors include sourcing and shrink reduction. In retail, fresh categories consist of fruits and vegetables, meat, fish and dairy goods. These items typically account for up to 40 percent of the grocery chains’ revenues and are strong drivers of store traffic and customer loyalty.

The Need for Global Sourcing

Fresh products have always been extremely difficult to manage due to price instability. Suppliers are fragmented, items are perishable and fragile, and the replenishment and quality-control procedures are very tedious.In addition, with increasing consumer demand, retailers are offering a wide range of fresh products. This leads to having to handle many items that have different temperatures and handling requirements.

With such challenges, many retail chains are struggling to achieve a satisfying margin level in their fresh departments.With global sourcing, business works to find the most cost-effective site for manufactured product, fresh fruits and vegetable. This includes identifying locations that are situated in a foreign country. The aim of choosing global sourcing is that suppliers can learn how to succeed in a new market, obtain a new and cheaper item to supply to the markets.

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Seow Pick Ling Evelyn, DPSM
Evelyn Seow Pick Ling has substantive years of experience in the food industry,specifically in the specialised field of procurement and customer service, and focusing on fruits and vegetables. Evelyn is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). She completed a Diploma in Procurement and Supply Management (DPSM) in September 2020 at SIPMM Institute.

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