Alpine Supply Chain Solutions

August 28, 2024

The shifting landscape of food and beverage distribution

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The food and beverage distribution sector is navigating a complex landscape filled with challenges like perishable goods, shrinking shelf life, and evolving consumer demands. As regulatory pressures, such as the updated Food Safety Modernization Act (FSMA), tighten, companies are focusing more and more on detailed traceability and inventory management. Modern Materials Handling recently published an insightful article detailing the shift and how different operations are keeping up with the change: Farm to Fridge: Food & beverage’s complex dance

Brandon Novak, Senior Director at Alpine Supply Chain Solutions, provided his insights for the piece, noting that while some companies remain stuck in traditional methods, other food and beverage distribution companies are pushing forward with technology-driven transformations, embracing robotics, AI, and automation to modernize their supply chains. For more on what he had to say, read the full article

Beyond the adoption of new technologies, the article also explores how automation is addressing the ongoing labor shortage, particularly in demanding environments like frozen food storage, a staple in food and beverage distribution. “There’s always labor concerns in the frozen sector, which is looking for automated options to help fill in those gaps,” says Novak. Companies are turning to automated storage and retrieval systems (AS/RS) and warehouse execution systems (WES) to maintain efficiency in harsh conditions, reducing reliance on human labor. 

The rise of SKU proliferation, driven by the demand for greater product variety and online grocery shopping, is further complicating distribution processes. Automation is becoming essential in managing this complexity, allowing companies to deliver more store-friendly pallets and streamline operations. With aisle-ready pallets, stores can eliminate multiple steps in the receiving and replenishment process, making better use of limited available labor.With the industry shifting toward more innovative approaches, Novak and other industry experts emphasize the importance of leveraging technology not just to survive but to thrive in a competitive market and to more effectively manage labor. For a deeper dive into how these strategies are reshaping food and beverage distribution, read the full blog post here.

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