The dominoes are falling

What else is happening in foodservice and what’s the impact? It’s clear that volatility in the market has had a domino effect. Manufacturers and distributors alike have been equally impacted from a planning standpoint. What isn’t clear is the manufacturer volume sold by the distributor to the operator. This component exacerbates the need for the enforcement of the contract.

Manufacturers need to grow their “sell in” volume by incenting distributors to “sell out” volume to new points of distribution such as new vendors or operators. This results in the creation of a volume incentive-based contract price that will contain purchase price points based upon a timeframe, volume tiers and layered incentives which stipulate the next volume incentive price point for the next timeframe – all are contingent upon the prior volume tier being met.
Primary concerns