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Retiredfoodpro

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Reply with quote  #1 
Couple months old news but worth the read.  The current craziness of the business currently is prime for Amazon.   

 https://finance.yahoo.com/news/one-industry-amazon-set-disrupt-130100597.html


 And there's this news that goes deeper into the merger issues currently. 

https://www.chicagobusiness.com/news/rivals-combine-us-foods-cant-make-deal
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broadliner

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Reply with quote  #2 
If Amazon can offer same-day delivery on regular orders, nor emergency fill-ins, that would be a game changer. A customer ordering 100+ cases in the morning and getting it in the late afternoon would be amazing. This would especially benefit hotels and catering operators whose head counts can change before an event. Would Amazon use a customer's regular supplier or run it through a competitor?

As far as mergers go, after Ben E. Keith, Cheney Bros, Gordon and Shamrock there aren't many large ($1 billion plus) companies left. There are a few regional suppliers and a lot of independents. I can see USF and Sysco rampaging through the country buying up smaller competitors just to get them out of the way.
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Retiredfoodpro

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Reply with quote  #3 


Quote:
Originally Posted by broadliner
If Amazon can offer same-day delivery on regular orders, nor emergency fill-ins, that would be a game changer. A customer ordering 100+ cases in the morning and getting it in the late afternoon would be amazing. This would especially benefit hotels and catering operators whose head counts can change before an event. Would Amazon use a customer's regular supplier or run it through a competitor?

As far as mergers go, after Ben E. Keith, Cheney Bros, Gordon and Shamrock there aren't many large ($1 billion plus) companies left. There are a few regional suppliers and a lot of independents. I can see USF and Sysco rampaging through the country buying up smaller competitors just to get them out of the way.


Amazon makes sense and this is why.  They have billions of dollars in cash-leverage.  They have the on-line ordering platform already perfected. They already have Whole Foods. 

The only missing piece is distribution.

Amazon could in concept send all orders out for bid to participating distributors. The customer could get deliveries from several distributors the same day or next day depending on who won the bid items.  The customer would use the commercial-business side of Amazon for credit terms eliminating the distributor from any financial obligation.

Amazon would then become the distributors sales force in concept. The margin savings for the distributor would more than make up for any upfront investments the distributor might have to make in OPS to accommodate delivery service improvements.  Amazon may also provide "on demand" drivers with refrigerated vehicles for same day deliveries. Amazon already provides a $10,000 upfront business reimbursement program to become a contractor-driver for Amazon. Amazon also already has a high tech logistical system in place to manage deliveries. The customer could actually go on-line and track their delivery up to the minute. 

It's a "win win" for Amazon and the distributor. For those distributors who choose not to join the "club", well, they'll be left out in the cold to gather the bread crumbs left over. 

IMO

 


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laser

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Reply with quote  #4 
Over the years, there has been speculation from time to time about Warren Buffet, through McLane, wanting to buy Sysco. I think it is pretty universally accepted that Sysco is probably too large to be a takeover target by someone other than a Buffet or a large company like his. If Amazon wanted to really disrupt the foodservice distribution business model, they easily have the ability to buy Sysco, which could totally do this very quickly. Just a thought.
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broadliner

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Reply with quote  #5 
Jeff Bezos could walk into Sysco Headquarters and whip out his checkbook, and pay cash for Sysco.

Quote:
Originally Posted by laser
Over the years, there has been speculation from time to time about Warren Buffet, through McLane, wanting to buy Sysco. I think it is pretty universally accepted that Sysco is probably too large to be a takeover target by someone other than a Buffet or a large company like his. If Amazon wanted to really disrupt the foodservice distribution business model, they easily have the ability to buy Sysco, which could totally do this very quickly. Just a thought.
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northernms

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Reply with quote  #6 

the article says that Amazon is nimble when it comes to distribution.... I'm not convinced. Right now they are shipping small packages via UPS/USPS. When I order my Whole Foods delivery it's delivered in passenger vehicle by a newly immigrated person for an $8 tip. I love it! but it's a far cry from 100 piece 1500 pound temp controlled food service order. 

I think they would have the same troubles broad-liners face.. lack of drivers, lack of quality 3rd shifters, government regs

I think the &$#% is about to hit the fan concerning Amazon's growth. Google "amazon strikes". 

Also I feel like Amazon wouldn't even want half my customers! LOL

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broadliner

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Reply with quote  #7 
How would they handle shorts and outs and mispicks? Will your company get the order or will Amazon also send it the local Sysco or USF branch?

Quote:
Originally Posted by northernms

the article says that Amazon is nimble when it comes to distribution.... I'm not convinced. Right now they are shipping small packages via UPS/USPS. When I order my Whole Foods delivery it's delivered in passenger vehicle by a newly immigrated person for an $8 tip. I love it! but it's a far cry from 100 piece 1500 pound temp controlled food service order. 

I think they would have the same troubles broad-liners face.. lack of drivers, lack of quality 3rd shifters, government regs

I think the &$#% is about to hit the fan concerning Amazon's growth. Google "amazon strikes". 

Also I feel like Amazon wouldn't even want half my customers! LOL

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Southchikid

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Reply with quote  #8 
https://www.cbsnews.com/amp/news/amazon-prime-restaurants-to-shut-down-restaurant-food-delivery-service-in-u-s/

I don’t see amazon getting back into restaurants anytime soon. There are better profit areas they can concentrate on
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snoman

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Reply with quote  #9 
Amazons roll in the short term would be small wares/paper/etc competing w/a Restaurant Depot. Broadliner is on point w/the challenges they'd face.
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jcc123

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Reply with quote  #10 


  Amazon has been speaking to manufactures and brokers trying to find a way to do it. One of the biggest issue they needed help with was combining various temperature zones for food delivery. They are already moving into in-house delivery methods, for their products rather than UPS. It may it happen tomorrow but it will happen.
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