Food Industry Distribution Study

Distribution expenses within the food industry average 3.0 percent of sales, the Food Marketing Institute (FMI) states in the recently released 2004 Food Industry Distribution Center Benchmarking Report.

Distribution expenses within the food industry average 3.0% of sales, the Food Marketing Institute (FMI) states in the recently released 2004 Food Industry Distribution Center Benchmarking Report. Costs vary between traditional food distributors (3.6% of sales) and self-distributing chains (2.7%). The food retailers reportedly achieve lower direct labor and management costs due in part to the efficiencies gained through larger customer orders. On a site-by-site basis, labor costs are the biggest expense by far, representing 68% of total costs, in operating a modern food distribution center. Contact the Food Marketing Institute (www.fmi.org) for a copy of the report.

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