Distribution takes in both the physical movement of goods and the setting up of intermediary relationships to guide and support the movement of products into the wider marketplace.
Distribution must be recognised as a key element within an integrated and well-managed supply chain. Sufficient data flow is needed in order to create a source of competitive advantage.
The Irish retail and foodservice market has changed significantly over the last ten years. In that time, it has witnessed the arrival of international players coupled with a consolidation of the Irish operators.
- Retail customers are now offered a range of formats varying from the local independent specialist delicatessen to symbol group retailers, right through to large scale multiple retailers.
- The foodservice market has also seen change with this sector dominated almost exclusively by Irish operators who have streamlined their businesses. They offer a professional service to clients with increased product ranges and additional services such as daily deliveries.
These changes have radically altered the way small food manufacturers deliver their product to market. There has been a growth in central distribution centres, electronic ordering, category management and a host of other tools and supports.
The good news is that all of these changes have made the market more accessible to small food manufacturers and has enabled manufacturers to have a choice of options when selecting a route to market.
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