It’s no secret that the biggest problem currently in the industry is the cost of labor and the lack of it (followed by the high cost of transportation). Within this same supply chain-squeezing climate, consumers have become more demanding for quality, service and sustainability.
Regional and local produce wholesalers sit in a prime position to help retail and foodservice meet customer demands while simultaneously dealing with labor and cost issues.
Customers can better utilize everything regional and local wholesalers offer, both on the traditional wholesaling side, as well as the other value-added services. The modern wholesaler provides a variety of labor and cost-cutting options.
Our goal is not to eliminate our customers’ workforce, but rather to help reposition them. By taking care of their needs in the back of the house, we can help make their employees more useful and relevant to other specific needs.
Efficiencies in food cost and shrink are advantages of sourcing from local wholesalers, especially when it comes to value-added processed product.
With the market acting like a yo-yo, and lack of consistency in product, customers have a hard time calculating food costs. To further complicate the cost fluctuation, they have to consider labor cost, yield, waste, and the safety of their employees in the kitchen.
Wholesalers that provide value-added services and processing can present customers with calculated food costs before they buy the product. And, with the labor force so unreliable, we take the cutting process out of their hands — literally.
Using a wholesaler geographically close to your operation allows a customer greater flexibility and cost savings. Companies should build close relationships with local farms, national suppliers and other wholesalers to provide a wide range of quality products, but with a reaction and supply time favorable to the customer.
Customers can trust local wholesalers to provide them with the best quality product, while not sacrificing price or support. Flexibility in ordering, delivery times, quantities and product specs can greatly affect a customer’s bottom line.
The longevity and connections produce-specific, family-run wholesalers have made over the years set us apart from other companies trying to do similar things. We have built our brands and established our reputations, and we work hard to ensure the best produce for our customers.
Even with our fresh-cut produce, all product is directly in our hands at one point during production, whether that be when hand-peeling, cutting, or placing it in a machine or bag.
We also take in fresh inventory for most items three to four times a week to keep our inventory as fresh as possible, so we don’t sit on product. The philosophy of wholesalers should be process to order, not to stock.
Large corporate companies, with little to no history in the produce business, are infiltrating the market. By typically offering cheaper products compared to local value-added items, they are sacrificing quality and service.
Not just in the produce business, but in every industry, you need to be able to offer two of these three things: quality, service and price. Sometimes we can do all three, but truthfully, often not.
But it’s companies like ours, and others, who have been there for customers for decades. We have the relationships and experience to be able to specifically discuss and meet what the customer needs and wants, and not just try to sell what we want to sell.
The produce business has been making a strong shift to greater demand for value-added, specialty, convenience and flavor. Customers who value and use a local wholesaler will have fresher product and better quality and service.
As the labor market continues to be constrained, wholesalers should give customers the chance to reposition their labor into more beneficial areas.
Lastly, as supply chain costs continue to rise, customers who use a regional/local produce wholesaler will source better product for a fair price with lower shrink.
So, take a closer look at what the reputable wholesalers in your area can offer you as a customer. Discuss with them how they can elevate your business in a time when the public is looking for the highest quality product and service. Work with them to find the efficiencies you need, and establish a win-win relationship.
Johnny Karrat is the fourth generation of his family in the produce industry and is the director of sales and operations for Capital City Produce, based in Troy, NY. His great-grandfather was a wholesaler, his grandfather was a broker, and his father worked at the brokerage and ran his own trucking company before eventually forming wholesaler Capital City Produce in 2012. Capital City Produce is a broker, wholesaler, re-packer and processor of fresh produce.
