Blog January 30, 2025

Unit Picking: The Future of Foodservice Distribution

By Marc Menard
January 30, 2025 | 4 min read

Warehouse Mechanics - tips & tricks from an supply chain expert

In a couple weeks, LIDD will be exhibiting at UniPro’s upcoming PFL/Scope Conference. In the leadup to the event, I’ve been thinking a lot about how foodservice distributors can offer more value to their customers while maintaining and even increasing profitability. One solution that I think all foodservice distributors should be looking to implement is unit picking. Read below to find out why!

 

 


Foodservice Distributors Need a New Approach

The foodservice industry is more competitive than ever. Restaurants are battling for customers, suitable real estate is shrinking and getting more expensive, and efficiency is king. To navigate these headwinds, restaurants are increasingly looking to reduce storage space and maximize table availability. As a result, restaurants are looking to make smaller, more frequent orders.

Traditionally, the U.S. foodservice industry has relied heavily on case picking. As a foodservice distributor, how can you accommodate the changing needs of your customers while maintaining your own profitability? The secret sauce is unit picking.

What is Unit Picking?

In the context of food distribution, unit picking is the practice of picking individual units or items, such as a single can of tomatoes or a single bag of flour, rather than picking full cases or packages. This contrasts with the traditional case picking method prevalent today in the foodservice industry, where entire cases are picked and shipped to restaurants.

Unit Picking Benefits Both Sides of the Transaction

Foodservice Companies

Unit picking allows foodservice companies to order exactly what they need, reducing the need for large storerooms and allowing for more table availability to generate revenue. In dense city centers where storage space is limited, this is especially helpful for foodservice businesses

Another benefit for restaurants is that unit picking provides them with the flexibility to offer a wider variety of menu items and respond to changing customer preferences more effectively. For example, a trendy dish could be added to the menu for a limited time without forcing the restaurant to commit to a caseload of food they wouldn’t end up using or selling.

Foodservice Distributors

Despite the theoretical decrease in picking efficiency, distributors can also benefit from unit picking with the right technology solution and warehouse layout. One key benefit is profitability. Distributors selling goods by eaches can price these smaller orders at a premium, allowing them to offer a wide variety of goods by the unit without sacrificing the profitability and cost savings of selling in larger quantities.

Offering unit picking also allows distributors to adapt to changing consumer trends. Where restaurants may implement new menu items to accommodate a trend, foodservice distributors should be prepared to offer those ingredients in realistic quantities.

The Food Waste Angle

Besides the economic benefits for both foodservice companies and distributors, unit picking also has the added benefit of reducing food waste. Over-ordering and poor inventory management are two challenges that foodservice companies face daily. By offering eaches as opposed to cases, distributors can help foodservice companies streamline their inventory and reduce the opportunity for waste.

Final Thoughts

Unit picking presents a compelling solution for foodservice distributors to adapt to the evolving needs of their customers while enhancing their own operational efficiency and profitability. Our advice? Embrace this approach to foster stronger customer relationships, reduce waste, and position yourself for continued success in a dynamic market.


Reach out to the LIDD team to learn more about how you can implement warehouse layouts and technology to make unit picking possible.

Facility Implementations

 

Let’s build world-class infrastructure together.

Book a Consultation

Are you ready for logistics automation?

Take our readiness quiz to find out!

Begin Assessment