From E-Commerce to Retail: How a California-Based Food Distribution Company Navigated the Transition with Expert Guidance
By Jeff Hamilton
October 24 | 1 min read
Jeff On-Site: The Value of Onsite Presence in Overcoming Warehouse Capacity Constraints
In the ever-evolving business landscape, companies often find themselves facing warehouse capacity constraints as they strive to meet the demands of their customers. One California-based food distribution company took on this challenge head-on by transitioning from e-commerce meal kits to producing retail meal kits. This transformation required not only a shift in strategy but also a reevaluation of their supply chain operations.
In this blog post, we will delve into the valuable insights shared by Jeff, who had the opportunity to be on-site at this food distribution company. With funding secured from a prominent retailer, the company embarked on a journey to cater to a wider audience and expand their market reach. But what exactly does it take to pivot from e-commerce to retail?
Transitioning from E-Commerce to Retail
Pivoting to retail from e-commerce is quite a shift. The rise in e-commerce has led to transformative changes in global supply chains, driven by new shipping technologies and evolving consumer demands. As was the case with this client as they looked to expand their market reach. But flipping the script back to retail meant they needed to revert to more conventional supply chain solutions.
Basic meal kits typically cater to individual customers or small-scale orders, offering pre-portioned ingredients and recipes for at-home cooking. On the other hand, the retail meal kits are designed to be store-friendly and eye-catching, allowing consumers to conveniently purchase them on demand. Retail meal kits often have different packaging, labeling, and marketing strategies to appeal to a wider audience. They are produced in larger quantities and have longer shelf lives compared to e-commerce meal kits. The channel shift requires scaling up operations.
Navigating the Complexity of Retail Meal Kit Production
To accommodate this change, the company recognized the need for a new facility. That’s where LIDD stepped in. From construction and equipment sourcing to production setup and overall supply chain operations, we took charge of every aspect, even the most mundane.
Growing quickly can strain any team. That’s where hiring consultants for special projects proves its worth. Bringing in external experts like us offers tremendous benefits. It allows your existing team to focus on their core responsibilities while ensuring the special project gets the attention it deserves.
However, striking a balance is crucial. Involving your own team in the process is just as important. We’re not here to steal the spotlight; we’re here to collaborate and enhance. Collaboration between your internal staff and external consultants fosters knowledge transfer and ensures a seamless transition once the project is completed. Success is a team effort, after all.
Overcoming Warehouse Capacity Challenges: Partnering with External Consultants
If you’re considering hiring a consultancy like LIDD, here’s my two cents. It all comes down to resources and prioritizing bandwidth. By carefully evaluating your organization’s capabilities and workload, you can make informed decisions about when and where external expertise would be most beneficial.
So, as you navigate through new ventures and operational changes, remember the value that consultants can bring to the table. If you’re looking to scale and prioritize bandwidth, external resources not only offer specialized knowledge and fresh perspectives, but also the additional support to get things done.
If you would like to learn more about warehouse capacity optimization, or show to navigate dynamic retail and e-commerce landscapes, reach out to the LIDD team, or contact Jeff directly.