Chat with us, powered by LiveChat

Challenges Facing Food & Beverage Distribution Businesses in 2022

28 Jan 2022 EasyVend


They say a new year bring new challenges and for Australian Food and Beverage Distribution businesses, 2022 will present it’s own unique set of challenges and opportunities.

To be successful in 2022 Vendors and Distributors need to have a strategic plan in place that tackles presented challenges and leverages future growth.

Here are 5 of the biggest challenges facing Australian Food & Beverage Distribution businesses in 2022.

1. Staff Shortages

Arguably the biggest challenge facing all Australian businesses in 2022 is labour shortages. With the Omicron strain continuing to surge throughout Australia, many businesses will be forced to operate with skeleton staff at different stages of the year.

So far in the first few weeks of 2022 1 in 4 businesses in the Food & Beverage Industry have had to suspend trading due to staff shortages brought on by the Omicron wave. As a Distributor, the best thing you can do is plan for the event, have the appropriate procedures in place, and take the correct pre-cautions to minimise the effects a staff shortage will have on your business.

2. Product Shortages

Another major challenge that is already facing Australian Food & Beverage businesses is product shortages. Like challenge number 1, your business may already be experiencing the challenge of sourcing stock from your suppliers.

As Australia continues to battle the Omicron wave there will be instances where gaining stock at your regular interval will be tough. To minimise the effects on your business you should forecast ordering, consult with your accountant, and look at different opportunities to stock more in case of a supply shortage.

Related Article: 5 Ways Food & Beverage Distribution Businesses Can Increase Cashflow.

3. Delayed Payments

A recurring challenge for Food and Beverage Distribution Businesses is Debtors. A recent study released by Xero found Australian Food and Beverage businesses wait 24 days on average for payment. Waiting almost a month for payment is unhealthy and will only impact other areas of your business.

Fortunately for Vendors and Distributors there are solutions in place that minimise debtors and increase cashflow. An Automatic Credit Card Payment Solution can automate your businesses entire payment and invoicing process – saving you both time and money.

Using an Automatic Credit Card Payment solution, the following processes are automated:

  • Customer invoices are automatically generated and sent at the correct interval
  • Customer payments are taken automatically at the agreed time
  • A Customers payment is automatically allocated and receipted to the correct invoice

To read more about Automatic Credit Card Payments in EasyVend click here.

4. Dealing with lockdowns

Food and Beverage distribution businesses have had to adapt to lockdowns on many occasions over the last 2 years. As Covid cases continue to grow, the dark cloud of lockdown could be a possibility.

Lockdowns affect all businesses in different ways but the food and beverage industry cops it a lot harder. When restaurants, cafes, shops are closed the demand for distributors dwindle. Even through you are an essential service you may not have enough demand to warrant opening.

Even though it may feel unlikely that Australia will ever go back into a lockdown, you can’t be so sure. Vendors and Distributors need to make sure they have all the tools and strategies in place that allow your business to operate successfully during an enforced lockdown.

Related article: 4 Ways To Save Your Food & Beverage Distribution Business During Covid and Beyond.

5. Trading Online

To be successful in 2022 Australian Food and Beverage Distribution businesses MUST have an Online Ordering Website. Customer preferences are constantly changing, many Australians are now shunning their regular distributor in favour of those who offer an easier online buying experience.

For many Distribution businesses, transitioning to an online system presents many challenges. If your businesses is looking to implement an online ordering website for your customers, you need to make sure you chose your provider correctly. Your Online Ordering website needs to simplify your customers ordering process and streamline your operations.

Related Article: 5 Features Every Online Ordering Website Should Have.

Final Word,

2022 will be a year of many challenges and opportunities. Every Food and Beverage business is going to have tough days in 2022 but what will set yourself apart is the way you plan and manage the effects they have. We hope you enjoyed reading this post!

To read more articles like this visit our latest news section here.

About EasyVend

For food and beverage vendors and distributors, EasyVend supports and automates every part of your business, freeing you up to grow your sales unlike other ERP systems that are designed more for wholesale suppliers than for distribution businesses like yours.

EasyVend includes all your everyday features like Inventory Management, Invoicing, Receipting, Route Management, Automatic Credit Card Payments, Online Ordering, Xero Integration, Customer Reminders, Business Reporting and so much more.

Call us today on 1300 473 744 to see what sets us apart and to set up a no-obligation free demo of EasyVend.