THE WHOLESALE SALVAGE FOOD SUPPLIER’S GUIDE TO THE GROCERY SUPPLY CHAIN

GROCERY SUPPLY CHAIN

As wholesale salvage food suppliers, we have a frontline view of the grocery supply chain. Our unique position in the industry allows us to observe the food supply chain in both the best and worst times. Arguably, we – businesses in general (and our society at large) – are presently operating under very challenging circumstances. With this in mind, this post discusses the positive and negative vagaries of Marvell Foods’ unique position in the food industry, the challenges we face and the rest of the food industry, and how these many issues also impact consumers.

THE GROCERY SUPPLY CHAIN – A MULTI-STEP PROCESS

The Grocery Supply chain operates essentially in a three-step process from food processor to food purchaser. In step one, the processor, considered the manufacturer, buys raw ingredients and turns them into products. In step two, these products are sent (think Truckers and Fuel) to a distribution center, organized (according to product type); in Step three, they are transported again (think Truckers and Fuel) to retail locations. The last step is when these products arrive at the grocery stores for direct sale to consumers. The process described seems pretty straightforward. Yet, while that may be true, any issue or hiccup in any of these steps can holistically affect the system. And that’s where we seem to be in today’s business environment, the country at large, and the food industry as a whole, across the entire continuum of the food supply chain.

DISRUPTIONS IN THE CURRENT SUPPLY CHAIN AND BUSINESS ENVIRONMENT

WHOLESALE SALVAGE FOOD SUPPLIER

Notably, disruptions within the first two links in that chain can cause the most severe damage. This is primarily due to the complexities and logistics of food manufacturing and distribution. Let’s take these two issues point by point:  Food Manufacturing – without getting into a complete supply chain discussion, and unless you went with Elon Musk on a rocket ride and returned yesterday, there have been a few issues with raw ingredients product supply during, oh, let’s say, the past two years or so. It started with the Covid 19 Pandemic and has continued to today, and matters worsened with a war in Europe. So, the “raw food-ingredient supply chain” can be described as “a mess.”

TRANSPORTATION & DISTRIBUTION

TRANSPORTATION & DISTRIBUTIONRegarding “transportation/distribution,” here’s the (brief) story (much of which you know unless, once again, you’ve been off the planet); starting with Covid, there was, and remains, a personnel/labor shortage – in EVERY SECTOR in EVERY INDUSTRY. From manufacturing through to distribution – this, of course, includes truckers. Fewer truckers equal fewer “goods” getting to store shelves (at all or on a timely/consistent basis – remember the news with images  of “empty shelves”?).

The next issue concerning “transportation” – is gas/fuel price increases. Gas prices have, at this writing, nearly doubled. This means that we have fewer truck drivers, and the cost to transport those goods has increased substantially. Less-than-Load deliveries have trickled to a minimum, as “buyers” can’t afford to pay the freight for small loads. Less frequent deliveries are the order of the day PLUS an increase in the cost of those goods to the consumer to cover ALL these NEW costs – increased wages for truckers, PLUS fuel costs, PLUS all supply chain increases absorbed by every entity that touches products as they are passed down the line.

HOW DO MARVELL FOODS WORK IN THIS ENVIRONMENT?

A company such as Marvell Foods specializes in purchasing unused products (and, often unsellable products – whether expired or close to “best use by dates”) and reselling them at discounted prices through their relationships with retailers – discount stores – big-box discount stores, grocery stores, small independent operators, convenience stores, food banks, commissaries, and even federal institutions such as prisons. Given the short supply of top-tier products, secondary products, such as “close-coded,” are increasingly more valuable to retailers and consumers. A benefit not to be overlooked is that these secondary goods and products are poised for excellent margins, and consumers are now increasingly looking away from brand goods.

Marvell Foods offers a solution many companies (manufacturers, processors, suppliers, distributors) might not, and often, are unaware of. The sources and resources Marvell Foods have developed over nearly three decades in business have become increasingly desirable as profit margins have been squeezed at every spectrum of the business and supply chain continuum.

Below, we’ll detail organizations like Marvell Foods’ role in stabilizing a supply chain.  

HOW OVERSTOCK GROCERY STORE BUYERS BENEFIT THE SUPPLY CHAIN

Wholesale salvage food suppliers might not be the first buyers that come to mind when people think of the grocery supply chain. Still, they are crucial in maintaining a constant flow of products. Surplus grocery buyers create efficiencies in the supply chain, often purchasing products directly from food manufacturers and bypassing mid-level distribution channels.

When the supply chain operates as it should, wholesale grocers get products into the hands of consumers faster and also help find new solutions for selling excess inventory, surplus, salvage food, out-of-date food, and other hard-to-offload products. And, when normal distribution channels stop working as they should, a company like Marvell Foods can help bridge the gap between manufacturer and consumer and ensure that everyday buyers get what they need, and as a kicker, at a lower cost price. In bad times, as it turns out, this is a win-win for all involved.

OVERSTOCK GROCERY STORE BUYERS BENEFIT

Marvell Foods is a supplier of a vast array of discount/ed food products and goods that salvage food suppliers often purchase. Some salvage food suppliers operate their own grocery stores, while some work through other retailers. In either case, the food they sell is held to the same high standards and food storage precautions that you’d expect anywhere else— just with a few caveats that have made the products unable to be sold on your typical store shelves. To be clear, Marvell foods can, and does,  work on either side of a deal, serving as “buyer” or “seller.” For example, they often buy goods from salvage food companies/suppliers and resell them to other entities. On the other side, they will sell food products and other goods to salvage companies, whether food-related or other goods.

CONNECT THE SUPPLY CHAIN DOTS WITH MARVELL FOODS: DO MORE BUSINESS, ATTRACT NEW CUSTOMERS, EARN HIGHER PROFIT MARGINS 

WHOLESALE SALVAGE FOOD SUPPLIER

Despite the alarming headlines concerning food shortages, the fact is that there is plenty of food to go around – it’s just a matter of knowing where to look. Marvell Foods has access to food and food sources unavailable to most companies, which is the benefit of having established long-term relationships during three decades in business. We also have these food products and other goods at severely discounted prices. So whether you’re a manufacturer looking for raw products, a retailer – big-box discount store, or any other direct-to-consumer end-user looking to acquire food goods otherwise unavailable to you with the potential of huge margins, Marvell Foods is a go-to source.

At Marvell Foods, we put our experience as wholesale salvage food suppliers to work to relieve the burden of distribution inefficiencies in the grocery supply chain and ensure that people have access to the food they want at a lower cost. We also work directly with wholesale grocers and other retailers to source the products they need—especially when other channels have failed them.

The supply chain can be unpredictable, and even in the best of conditions, it’s a good idea to have as many options as possible to keep shelves stocked with inexpensive food products consumers are desperately seeking today.

If you’re searching “wholesale grocery store suppliers near me,” you’ve come to the right place. Contact our team to learn more about our salvage and surplus grocery services and how Marvell Foods can help your company implement innovative solutions for overcoming unanticipated issues in the grocery supply chain.

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