The launch of Amazon Fresh is unsettling the wholesale industry, but Tevin Tobun, Chief Executive of GV Group which owns Foodmove, an efficiency-driven food logistics business, thinks it could be the catalyst for the shift in culture that’s been on the cards for some time.
He explains: “It’s no surprise that wholesalers are concerned. The launch of Amazon Fresh across 69 UK postcodes, could put them under the same pressure as the big retailers, as small catering businesses look to source fresh ingredients, fast.
“At the end of the day, we’re all consumers and the easy, efficient way we shop online has become part of our daily life. As a consumer, you can order an item online and have it delivered the same day. Yet, most caterers need to wait 24-48 hours for a delivery. If wholesalers replicated the consumer online shopping model, it would result in more efficient stock control, reduced over-ordering and less food waste, so there are both environmental and commercial benefits.
E-commerce is the fastest growing retail market in Europe and the hospitality market needs to move quickly to avoid losing its share. We’ve already seen operators like Compass link up with DHL and over the coming years, we’ll see more strategic partnerships.
Efficient delivery is a huge challenge to any business that is offering it as an additional service. Wholesalers need to look for specialist delivery companies who have the technology, knowledge and expertise to deliver on time, to the right person at the right time. It takes a huge amount of precision planning. The delivery is the final part of the customer journey, so it’s really important to leave a lasting impression.”