Food-Service-Manual-for-Health-Care-Institutions

etween sender and receiver, EDI already is processing orders. By 2010, 90 percent of all ordering
will be done directly by the buyer using personal computers with software distributed by a
specific distributor or generic direct-order-entry software application that processes purchase
orders. EDI will be used to monitor customers’ buying habits and provide nutritional breakdown
of all products in the distributor’s line, as well as assess market outlook and menu suggestions.
Advantages to using EDI systems for placing food service orders include immediate order
confirmation; notification of out-of-stock items, with a list of suggested substitutions; automatic
price updates; menu analysis; inventory control; and portion control. The expansion of
cost-effective EDI communication systems will provide at least three benefits: immediate customer
access to the distributor’s computer while decreasing telephone expenses, the transfer of
inventory data to a personal computer within the food service operation, and bar-code scanning
that can facilitate deliveries and receiving. Some systems allow any member of the management
team to use electronic databases from the distributor to obtain product information
including a color photo of the product, unit cost, and other data needed in planning menus and
analyzing cost implications of different menu items and menu mixes.
Distributors’ Changing Product Line
Distribution will continue to be a people business in which service is the way to distinguish one
distributor from another. The move toward “full-line” food service distribution is predicted to
continue, with distributors’ product mixes expanding and the number of items available greater
than ever before. Food distributors not only are the main source for food but are becoming the
primary source for supplies and equipment to food service operations. Specialty distributors in
meat, poultry, paper products, and so on are being forced to expand their product lines to compete
with full-line distributors for national accounts. The specialty distributor of the 1980s has
become the broad-line distributor of the 2000s. Distributors are placing more emphasis on
packaging relative to its effect on the environment and the “green movement.” They are working
in partnership with food service organizations and the packaging industry to develop packages
that are less dense and contain recycled materials.
To become more competitive, distributors are offering value-added services, those services
that go beyond simply completing the delivery accurately and on time. Value-added services to
providers include
• Computerized services that incorporate EDI and advanced technology
• Advice on new products, nutrition information, food cost, and so on
• Continuing education seminars
• Menu development, merchandising, and marketing services
• Floral service
• Consulting services on design, layout, and equipment
• Coordination of a good service operation’s recycling efforts
• Cash discounts for early payment of invoices
• Promotion of products at a reduced introductory offer
• Reduced price for quantity purchasing
• Coupons and rebates
Today’s competitive environment requires distributors and their sales representatives to
continue to provide and expand value-added services to retain customers and acquire new ones.
Changing Role of Distributors’ Sales Representatives
Distributors’ sales representatives (DSRs) have become consultants and problem solvers rather
than mere order takers. Because purchase orders are processed using EDI, DSRs are trained to be
customer oriented and to provide information on products, packaging, economics, environmental
Purchasing
563