Redistribution adds value in the foodservice supply chain by streamlining product velocities and dramatically reducing costs.

With redistribution, manufacturers and vendors can efficiently ship truckload (TL) quantities to the redistributor, which in turn ships full (mixed) truckloads of product to distributors. The model leads to optimized supplier production runs, lower distributor safety stock, and increased inventory turns – in effect, a more efficient, cost-effective, foodservice supply chain overall.

Without redistribution, many distributors cannot utilize TL quantities and end up using higher-cost LTL transportation solutions.

R-VCM: A qualifying tool for new prospective customers is CDC's value proposition called Redistribution Value Creation Modeling. Initially, as a part of the sales cycle, CDC compiles data from a new prospect to determine potential case volume and savings associated with a baseline redistribution estimation, current LTO and promotional programs, inventory obsolescence and expedited freight cost reductions. Savings potential is modeled by considering: the prospect's business size (# of stores), average case price, LTO/RMO/Promo programs (# of items & total marketing programs per year), and other determining factors/assumptions. This allows CDC to qualify opportunities for potential business – once qualified it's off to the Data Gathering phase for Analysis.

• Review the supply chain network to understand business goals and objectives
• Prepare a network data download of qualified products for analysis
• Analyze data, including vendor, product, distributor, demand and order history, temperature, freight method, weight category, case size, palletization requirements, etc.

• Complete an Optimization and/or Cost Comparison Analysis of qualified SKUs to determine stocking and delivery strategies to drive costs out of the system
• Provide performance recommendations to improve profitability
• Submit a Supply Chain Optimization Plan revealing supply chain cost efficiencies and savings

• Maximize cost savings by seamlessly transitioning product movement to/from central distribution centers, regional distribution centers, forward-warehouses and redistribution locations
• Launch inventory, redistribution and freight logistics solutions to reduce costs
• Deliver redistribution products to distribution centers within 30 to 60 days of contract