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Gray Growth Provides Guidance for Third-Party Logistics in Direct to Consumer Frozen Products - GlobeNewswire

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NEW YORK, Sept. 14, 2020 (GLOBE NEWSWIRE) -- Gray Growth Strategies is a leading specialist in direct to consumer food services and third-party logistics. During the past few years, the direct to consumer (DTC) food channel has grown by leaps and bounds. Consumer acceptance of this channel combined with technological growth has created a dependable service for countless individuals and families across the country. While the COVID-19 pandemic wreaked havoc on the entire food distribution system, direct to consumer food companies saw a large amount of growth. Some of the key points to note include:

  • Supermarkets and brick and mortar outlets saw an increase in delivery demand as well as the demand for frozen foods
  • Restaurants suffered tremendously due to the shutdown following by limited capacity and started to embrace an increase in delivery demand
  • Direct to Consumer companies grew significantly, matching the growth seen in the past eight years in just a few short weeks

Gray Growth Strategies has positioned its clients to embrace these changes, allowing them to maintain an edge on the competition. Richard Gray, CEO of Gray Growth, has noted several trends that are impacting the demand for third-party logistics (3PL).

Trends Are Shifting in 3PL

A 3PL is a storage and fulfillment center that receives items in bulk, stores them, picks the stored products out, packages them, and ships the order to the customer. Particularly as it pertains to the temperature-controlled food market (such as frozen foods), there are major shifts taking place. These include:

  • Supply chain disruptions in the retail channel combined with complete devastation in the restaurant industry means that CPG companies are reviewing their relationships with the DTC channel. This channel provides an added revenue stream, improved brand loyalty, and better relationships with customers. Major supply chain issues and increases in DTC demand have increased CPG focus on the DTC Channel.
  • Startups and small producers of frozen foods have had issues selling through traditional retailers. Given that capacity issues made it hard for retailers to sell their frozen foods, startups and smaller producers are looking at DTC options.
  • Numerous DTC food companies have considered using Amazon; however, Amazon does not provide storage and fulfillment. They only provide a sales platform. As a result, many companies are still looking for a cost-effective solution to ship their frozen products to various parts of the country.

Clearly, there is a massive increase in demand for DTC services, yet these companies are struggling to keep up with demand. As a result, 3PL organizations are seeing an increased demand for their services.

The Growth of Micro-Fulfillment Processes

There are three large market segments in the 3PL field. These include:

  • Large cold storage facilities that are dedicated to DTC fulfillment
  • Smaller company DTC 3PLs
  • New market entrants

Because of this market segmentation, Gray Growth Strategies sees a new concept called micro-fulfillment taking shape. This is the concept of placing small-scale warehouse facilities in urban locations across the country. They act as a middle ground between the supplier and grocery store retailers. Numerous large grocers have already been partnering with technology startups to explore this concept as a possibility. Therefore, this market is primed to grow.

Learn More About the Emerging DTC and 3PL Market

In order for companies to position themselves to take advantage of this emerging marketplace, it is critical to learn about the emerging trends, rising consumer expectations, and resources available. That is where education comes into play. Gray Growth Strategies has published a helpful White Paper that explains many of these emerging market forces in detail. With the help of these insights, companies can position themselves appropriately to adjust to the rapid shifts that are currently taking place in this industry. As a result, businesses can maintain their competitive edge as the future unfolds.

Gray Growth Strategies knows that the future of the 3PL market is bright. Even as the pandemic starts to fade with the development of a vaccine, many of these shifts were already happening before the pandemic. The pandemic has simply accelerated them. Because Gray Growth Strategies is prepared to deal with these market shifts, their clients will be in position to succeed as well.

About Gray Growth Strategies: For more than 25 years, Gray Growth Strategies has assisted clients in steadying their course. As market leaders in the development of models, programs, and businesses, Gray Growth Strategies has consistently placed the needs of its clients first. Now, Gray Growth Strategies is focusing its attention on meal delivery programs, helping clients recover from the pandemic. From the first day, Gray Growth Strategies has consistently placed the needs of its clients first, leading to an unparalleled track record of success with results that speak for themselves.

Media Contact:
Richard Gray 
Phone: 888-998-8762


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