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The Formula for Success in Food Service Distribution: Speed + Accuracy + Productivity = Growth & Profitability

  • By
  • FHI|
  • May 3, 2024

In food service distribution, things move quickly – both the product, and customer demands. Expectations for the right products, delivered quickly and efficiently are unrelenting, and the tolerance for mistakes, missed orders, or delays is understandably very low. Food service distribution is HARD WORK, requiring experienced warehouse labor to ensure the inbound and outbound process meets the demands for speed, accuracy and efficiency.

Between all of our food service customers, FHI has over 50 years of experience in more than 25 distribution centers.

That’s more than 50 years…

  • In unloading, put-away, selecting and stacking outbound pallets.
  • Working in frozen, perishable and ambient DC environments
  • Breaking down orders for store deliveries
  • Running freight, picking by route, building 40” x 40” pallets and loading outbound deliveries
  • Tagging individual cases
  • Using finger and wrist scanners to select customer orders

The common theme across these decades is the critical nature of experienced labor to deliver both the productivity and accuracy demanded in food service distribution.  

The Problem: Labor shortages persist, impacting customer service

In a 2023 survey of 1,000 supply chain and logistics decision-makers conducted by Logistics Viewpoints, 76% of respondents indicated they are facing notable staffing shortages and 88% of respondents indicated an impact on customer service.

Labor: the leading impact on warehouse profit

AT 1% - 2%, food service profit margins are too small to suffer through inefficient operations. When labor costs consume 50% to 70% of a company's warehousing budget, the need for a consistency, reliability, accuracy and efficiency is paramount. It is the quality, not the quantity of the team that can have the most dramatic impact on the bottom line.

That’s where FHI can help.

FHI: Managed Warehouse Labor Solutions

At FHI, we provide experienced, managed warehouse labor so our customers can focus on growing their business.   We solve the labor challenges for our customers, providing custom solutions built around our customer’s needs:

  • FHI NOW: Short term managed reinforcement teams

Whether customers are navigating seasonal volume increases, a new WMS implementation, a physical building move, work stoppage, or any short term challenge, we source from our nationwide network of Associates to provide short term reinforcements to fill the specific roles needed with qualified associates..

  • FHI Distribution: Experienced inbound teams

Unloading, receiving and put-away set the pace for the building, so it is critical to outsource these roles to experienced teams, driven by productivity, to ensure efficiency.  

  • FHI 3PL: Full inbound and outbound warehouse management

Managing purchasing, scheduling inbound and outbound logistics, and meeting customers' needs can dominate your day. Entrust your warehouse operations to FHI and free up your resources to focus on what’s most important to you.

 We provide warehouse labor solutions to solve our customers’ problems, eliminate their headaches, and keep the supply chain rock solid. If you are facing warehouse labor challenges, you need a partner who knows food service and can make an immediate positive impact on your operation. You need FHI.

Learn more at fhiworks.com

FHI NOW

IS LACK OF QUALITY LABOR COMPROMISING YOUR SUPPLY CHAIN?

If you need dependable support to reinforce your team and get you back on track, FHI NOW can help.

Our on-demand, managed, experienced, trained, and sage team is available and can be on-site within 72 hours.
Learn More
FHI NOW

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In any market, your supply chain can make or break your ability to compete well. Don't leave that to chance. We can help you create a stronger operation, so you never fall behind the competition.

Stop worrying about labor challenges and start enjoying a safe, lean, and rock-solid supply chain.

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