Wholesale Grocer Supply Chain Streamlining

This chapter describes the efforts of a major distribution and retail company to lower its cost and modernize its systems. It also details the use of distribution network modeling in locating a consolidated distribution center. The modeling application sought to develop the lowest-cost alternative distribution center for Smart Final. The chapter also outlines the barriers arising from opposition to change within the organization. 

Smart Final is a leading cash-and-carry wholesale grocer and is also a foodservice distributor. Its three primary types of customers are  

Small-restaurant operators who shop and pick up their own food at the cash-and-carry retail outlets 

Institutional foodservice customers, such as restaurants, schools, clubs, and in-house feeders, who wish to have their orders delivered to them 

Consumers who traditionally shop at warehouse clubs and supermarkets for their own consumption or for group events 

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