Choosing a Distributor. Introduction of the Chosen Company
Choose one (1) distributor company and provide a brief overview including: The one I choose is Sysco
a history of the company
the geographical areas that they serve
a high-level list of supplies they offer (by category)
the main competitors
Choose one (1) competitive distribution company and compare and contrast five (5) similar products (offered by both firms) in the areas of price, quality, and value. Create a table to represent the data.
Provide an overview of this company’s payment policy including:
the objective of payment policy
the costs of paying early
the costs of late payment
the mechanics of bill paying
discounting
Determine whether or not to choose this distributor as the main supplier for the restaurant chain you selected in Assignment 1. Explain the decision by discussing the following items:
The impact of this distributor’s purchasing policy on the supplier selection.
This distributor’s ranking based on the supplier selection criteria outlined in Chapter 12 of the Feinstein and Stafanelli textbook.
The most important supplier selection criteria for this distributor.
The comparison between this distributor and its competitors based on the most important selection criteria identified in number 4c.
Use at least three (4) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Choice of a Suitable Distributor
Name
Institution
Choice of a Suitable Distributor
Introduction
The choice of a suitable distributor for supplies needed to run a business is an important activity, which requires the application of appropriate precautionary measures. Selection of a supplier is a strategic decision that serves to fulfill the long-term goals of a company with low risk and a manageable expenditure. There are various criteria that a company or individual can use to choose a supplier. The criteria employ different methods for the identification of opportunities and challenges involved in the process. The appropriate use of guidelines ensures the successful selection of a suitable supplier according to the needs and capability of a company. The essay provides an in-depth outlook at the process involved in the selection of a supplier based on a comparison between the potential supplier and competitor companies, and the considerations that inform the choice of one of the companies.
Introduction of the Chosen Company
The potential company for the provision of supplies is Sysco Corporation. An overview of the company comprises of information about company history, geographical locations the company serves, and a list of supplies the company offers according to categories (Sysco Corporation, 2018). The company began operating as a public organization in 1970 yet founded in 1969. Stakeholders of all nine companies interchanged stock for the common stock of Sysco. The company has managed to grow from a total of 115 million dollars, up to $58.7 billion of annual sales. The success has been through the expansion of the internal organization, and company acquisitions. The corporation, in collaboration with divisions and subsidiaries, has become the largest distributor of food and similar products worldwide, with a focus on the food-away-from-home or food service industry. The company serves over 6000 locations of customers, which include healthcare, educational facilities, and restaurants (Sysco Corporation, 2018). The geographical outreach of company operations includes areas of US Broadline, Americas, and Europe. The areas of the Americas are Mexico, Canada, Panama, Costa Rica, and the Bahamas. The areas of Europe are France, Sweden, the United Kingdom, and Ireland. Sysco provides a diverse list of products available (Sysco Corporation, 2018). Customers include the food service industry components such as nursing homes, restaurants, and hospitals, colleges and schools, motels and hotels, and industrial caterers. Food products are frozen foods such as seafood, meats, fruits, entrée, desserts, and vegetables; dry and canned foods; fresh seafood and meats; dairy products; imported delicacies; and fresh produce. Non-food products include paper products such as disposable cups, plates, and napkins; tableware such as silverware and China; cookware such as utensils, pans, and pots; kitchen and restaurant supplies and equipment; and cleaning supplies.
Analysis of Competitor Company
One of the companies that pose considerable competition to Sysco Corporation is the Gordon Food Service. Conduction of comparison and contrast of similar products both firms offer in terms of price, quality, and value provide an insight into how the two companies rival each other. The table below provides a comparison of five similar products (prices of products in dollars) (Gordon Food Service, 2017).
Item
Price
Quality
Value
Sysco
GFS
Sysco
GFS
Sysco
GFS
Fresh and frozen meats
19.93
12.99
Good
Good
Best products sought for quality.
Best products sought for quality.
Poultry
22.00
17.99
Good