The foodservice distribution industry is crucial to the supply chain, delivering essential goods to sectors like restaurants and hospitals. In 2024, however, the category faces significant challenges, like labor shortages, tax policies, transportation issues, and food safety concerns.
Addressing these challenges requires a strategic approach involving advocacy and innovation.
The Food Institute Podcast recently examined this issue, as Mark S. Allen, president and CEO of the International Foodservice Distributors Association (IFDA), discussed the industry’s strategies for overcoming its current challenges.
Allen said organizations like IFDA remain pivotal in advocating for the foodservice distribution industry. The CEO emphasized the major issues for IFDA as an organization:
“We focus on four different issues at the direction of our board: labor, tax, transportation, and food safety. Those are our four big issues, they are core issues, they are critical to distributors.”
By engaging with lawmakers and regulatory agencies, IFDA aims to create a supportive environment for distributors. Their research and grassroots efforts bridge knowledge gaps and provide valuable industry insights.
Technological and Strategic Innovations
Distributors are investing in tech to enhance efficiency and the customer experience. Innovations in customer-facing technology, back-office processes, and transportation are improving accuracy and performance.
The industry is also exploring AI tools to streamline operations.
“Another area I would really point to is around labor,” Allen said, “and thinking about how we take advantage of younger labor and create an environment that younger people want to work in. So, more flexibility, for example, in the working environment.”
These labor adaptations are key to attracting and retaining talent.
Meanwhile, the dedication and safety of truck drivers and warehouse professionals are essential to the industry’s success. IFDA’s annual competitions and Hall of Fame inductions have highlighted their vital contributions. The COVID-19 pandemic illustrated the importance of these workers, Allen said.
“I quite honestly saw distributors do what they do best – get to work on doing the things they needed to do to continue to serve their customers,” Allen said, “to ensure their customers had the things they needed to be successful and … come out of it stronger on the back end.”
Industry Events as Important as Ever
Events like the Distribution Solutions Conference are crucial for the sector – both now and in the future. That conference offers invaluable insights by focusing on big-picture strategies and solutions.
“It’s probably the best 48 hours you’re going to spend all year as it relates to really working on the business versus in it,” Allen said. “So take a step away, think about, big picture, what you need to accomplish as a business over the next year.
“And I would guarantee we’ve got ideas – we’ve got solutions, we’ve got experts that can help you navigate a solution or a path to help you find a solution for what you’re trying to accomplish,” Allen noted, when asked about the most important takeaway from the event.
The Food Institute Podcast
In this episode of The Food Institute Podcast, IFDA President and CEO Mark S. Allen discussed the pressing challenges and innovative solutions in the foodservice distribution industry. Allen delved into topics such as labor shortages, transportation issues, technology advancements, and the importance of industry events like IFDA’s Solutions Conference.
