FEDA NEWS & VIEWS
INDUSTRY INSIGHTS
Modernization Starts With Alignment
Technology alone won’t solve supply chain challenges. Real progress comes when distributors, manufacturers, and partners work together around common processes and standards.
After more than two decades helping industries modernize, one observation has remained remarkably consistent: over time, competitive advantage begins to disappear. Companies adopt similar business models, follow the same
processes, and compete with increasingly similar strategies. This is why working with FEDA member distributors and manufacturers over the past year through the Future of Distribution Council (FDC) and its subcommittees has been so refreshing. Unlike industries that lose their edge as they gravitate toward sameness, foodservice equipment and supplies companies are building a shared vision for the future while still retaining the qualities that make them stand out. Together, distributors and manufacturers are proving that the companies that will lead the next decade won’t necessarily have the best technology. They’ll have the best alignment.
Foodservice equipment and supplies is an industry that demonstrates how diversity can be an asset. There are family-owned companies, large and small corporations, and global organizations, all conducting business through various types of dealer networks. It is one of the few industries where a Fortune 1000 company may purchase equipment through a regional distributor while relying on a national organization to manage installation across hundreds of locations.
This dynamic serves the industry well, but it also creates variation and complexity in technology adoption and capability. That same Fortune 1000 customer is likely to encounter data gaps when connecting their transportation management system to a distributor if their platforms are built at different scales or lack the compatibility needed to speak to each other. The resulting friction might delay the sharing of shipping information or make it difficult to properly schedule a subcontractor for installation. When systems are not aligned, good technology can still produce poor outcomes.
As technology advances and data becomes more available, the industry has found itself at an inflection point. Distributors and manufacturers are laser-focused on
6 FEDA News & Views
finding ways to better serve customers, which is driving them to work more closely to solve challenges like supply chain visibility and equipment damage during shipping. Through my work with the FDC, I have seen organizations come together to develop common standards and practical processes that will create the foundation for the next generation of industry technology. As the industry evolves, it is important to remember that technology itself is not the destination. Better technology without better processes simply accelerates inefficiency. The aerospace and automotive industries provide compelling examples of what is possible when organizations commit to common standards and deep collaboration. The precision required in those supply chains forced manufacturers, distributors, logistics providers, and technology partners to eliminate silos and operate as a single network. The result is greater visibility, higher quality, and supply chains capable of adapting to today’s volatility while delivering a superior customer experience.
I’m confident that FEDA members are on their way there too. Success will come once business leaders expand their focus beyond optimizing individual businesses and begin investing in solutions that strengthen the entire value chain. Modernization is not about implementing the newest technology; it’s about creating alignment that enables innovation, scalability, and better outcomes for everyone, regardless of size. The organizations that embrace common standards today will define the customer experience of tomorrow. The current conversations taking place within FEDA are shaping the standards and partnerships that will define the industry’s next chapter. For companies that want to help shape that future, there has never been a better time to get involved.
J Schneider is the managing director for the Dorn Group, a consulting firm that helps distributors and manufacturers unlock growth and accelerate transformation. He serves as a consultant to the Future of Distribution Council and will moderate the Distributor Focus session at the FEDA Annual Executive Leadership Conference.
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