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In the world of real estate, the address of a property can add tens of thousands to the value or take it away. The different sections of town define the culture, architecture, amenities, goods and services that are available. Some families value certain neighborhoods for the school district while some favor certain neighborhoods for their proximity to work. These zip codes hold a value proposition for those who live and work within it.

How often do we think about location in regard to supply chain? Having product in the right place at the right time can save miles and hours. Having access to more variety and product ready to ship improves your customer’s buying experience. Having access to open facilities to pick up product during the industry’s bumpy transition is yet another example that location can be a significant factor!  Let’s take a look at the ways location is a valuable link in the supply chain!

A Location in the Right Place

Consolidation facilities can be found in the middle of the growing regions where fresh produce is growing and being shipped. Typically it is picked up at the grower, but with consolidation, drivers go straight to the consolidation facility. You see significant time savings when you have a typical pickup consisting of a 4 hour wait at grower A, a 5 hour wait at grower B, and then a 4.5 hour wait at grower C. Also there is no guarantee that you will get these shorter 4-5 hour wait times at a grower and one long wait can throw off your entire pick up schedule. Having the product taken directly to one location at a consolidation facility makes a world of difference with wait times. In many ways it is similar to going to a grocery store where you add all the items you need into one basket instead of stopping at multiple specialty stores.

A Location that has Access to Everything

Consolidation facilities give you access to more product! Buyers can have more variety in what they purchase and can find more competitive prices with a greater amount of product available and the subsequent fight for bids. Also products with longer shelf life can be ready and waiting at the cooler and added on to an order. This can be a great advantage for product shipping from Mexico, and we use this strategy with our fresh avocado pulp and guacamole items from GoVerden Fresh. This is also a great way to keep a rotating stock of samples at a consolidation facility as well, so there is no delay in sending those to a prospective customer. This central location adds a level of expediency that allows customers to add product at a moment’s notice because the product is already stateside and is continually replenished.

A Location that Smooths Transition

Consolidation facilities also remain open in both growing regions during the industries transition. Many times product picked up at growers during this time will experience some disruption during with the shutdown of grower facilities and people and equipment traveling hundreds of miles to the next location. One way to lessen that impact is by using consolidation, a facility that does not undertake a complete move. Usually these facilities are open year-round in each growing region. They provides open locations that provide a buffer while grower docks are shut down. Also the various growers transition on different weeks, so these consolidation facilities can be a strategic location to keep as little disruption to transition on orders as possible.

Take Advantage of Location in Your Supply Chain

You can’t deny the value of location in the supply chain whether you are reducing stops, want greater variety and competitive prices in purchasing, have access to product shipped in from Mexico, or using consolidation to buffer transition downtime. We have found that consolidation not only saves our customers time and money, but this physical positioning for product also reduces many headaches. Contact us today to learn how we can specifically work with you to take advantage of location in your fresh produce supply chain!

Location, Location, Location!

Location is a valuable link in the supply chain!  Learn a little more about how and where to integrate location in your buying / sourcing / logistics strategy!