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How a Food Distributor Increased Sales By Nearly 9% in One Year With a Food Distribution Solution

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Business Opportunity

Mike Hudson Distributing started as a small operation with a single truck and refrigerator in the founder’s garage. Several years back, the business transferred ownership and orchestrated a move into a new warehouse with enough space to accommodate future growth. The specialty food distribution company came to AFS because it needed an integrated solution that could manage the entire operation. 

Solution

After determining the AFS purpose-built distributor management suite food service distribution software as the perfect fit for this challenge and business opportunity, Mike Hudson Distributing implemented the AFS ERP (Enterprise Resource Planning), OMS (Order Management Solution), WMS (Warehouse Management Solution), and eCommerce ordering solutions.

Benefits

The payback was immediate for the food distributor as sales grew by 9 percent in the first year. 

“Through the years AFS has provided us with the platforms to continually grow and improve our operational efficiencies,” Mike Hudson Distributing CEO George Parisi said. “As we integrated each platform into our day to day operations we have been able to “fine tune” our operations and implement procedures & processes that drive our business.”

Ownership attributes a decade of a 5 percent annual growth rate to capabilities like AFS ERP’s deal tracking which helped them to capture more deal dollars that were being left on the table. The AFS OMS afforded their salespeople better tools to penetrate existing accounts, increase margins and prospect new accounts.  This has resulted in an average growth of 5 percent per year since 2011. 

“Much of our growth results with salesman face to face contact with our customers and OMS provides them an additional tool to better serve our customer base,” Parisi added.

AFS WMS with advanced voice picking provided them with improved accuracy, reduced labor and optimized efficiency, resulting in inventory variances of less than 0.5 percent per year. 

They also have the ability to evaluate slow moving product and make product viability determinations as well as make provisions to deal with short-coded product before it is unsellable.

“Most of the benefits from voice picking have resulted from decreased picking time and decreased new hire training time,” Parisi reported. “In today’s world of employee shortages, it has become invaluable to decrease training time while maintaining accuracy and picking efficiency.”

The eCommerce solution provides a seamless connection with sales and customer service to provide a 360-degree view of customer service and brought self-service tools to its customers. This reduced the time the inside sales team spent on the phone taking orders, so they could focus more on other sales generation activities. 

AFS G2 Analytics provides actionable insight to make better, more profitable business decisions across the company.

“AFS gave my company the tools it needed to transform our business to become more responsive to the ever-evolving demands of the foodservice industry,” Parisi concluded. “They have been a trusted partner that has allowed us to grow every year.”

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