5 Challenges Facing Australian Food & Beverage Distribution Businesses in 2022

25 Jan 2022 Helpful Tips


They say a new year brings new challenges and for Australian Food and Beverage Distribution businesses, 2022 will present it’s own unique set of challenges.

To be successful in 2022 Vendors and Distributors need to have a strategic plan in place that minimises the impacts of presented challenges and leverages future growth.

Here are 5 of the biggest challenges facing Australian Food & Beverage Distribution businesses in 2022.

1. Staff Shortages

Arguably the biggest challenge facing all Australian businesses in 2022 is labour shortages. With Omicron continuing to surge throughout Australia, many businesses will be forced to operate with skeleton staff at different stages of the year.

So far in the first few weeks of 2022 1 in 4 Australian Food and Beverage businesses have had to suspend trading due to staff shortages brought on by the Covid Pandemic. To minimise the impacts of any staff shortage, Distributors need to automate their everyday tasks. The benefit of using a Food and Beverage Management Software like EasyVend, is tasks like Ordering, Inventory Control, Invoicing and Receipting are completely automated. In the event of any staff shortage your business will be able to continue to trade stress-free and seamlessly.

2. Product Shortages

Another major challenge that many Australian Food & Beverage businesses are already facing is product shortages. Like challenge number 1, your business may be already experiencing the challenge of sourcing stock from your suppliers.

As Australia continues to battle the Omicron wave there will be instances where gaining stock at your regular interval may be tough. To minimise the effects on your business you should forecast ordering, consult with your accountant, and look at different opportunities to stock greater quantities at a time in case of a hefty supply shortage.

Related Article: 5 Ways Food & Beverage Distribution Businesses Can Increase Cashflow.

3. Delayed Payments

A recurring challenge for Food and Beverage Distribution Businesses is Debtors. A recent study released by Xero found Australian Food and Beverage businesses wait 24 days on average for payment. Waiting almost a month for payment is unhealthy and will only impact other areas of your business.

Fortunately for Vendors and Distributors there are solutions available that minimise debtors and increase cashflow. An Automatic Credit Card Payment Solution can automate your businesses entire payment and invoicing process – saving you both time and money.

Using an Automatic Credit Card Payment solution, the following processes are automated:

  • Customer invoices are automatically generated and sent at the correct interval
  • Customer payments are taken automatically at the agreed time
  • A Customers payment is automatically allocated and receipted to the correct invoice

To read more about Automatic Credit Card Payments in EasyVend click here.

4. Dealing with lockdowns

As Covid cases continue to grow, the dark cloud of lockdown could be a possibility. Lockdowns effect all businesses in very different ways but one things for sure, the Food and Beverage industry cops it a lot harder than most. When restaurants, cafes, shops are forced to close the demand for distributors dwindle. Even through you are an essential service you may not have enough demand to warrant opening.

It may seem unlikely that Australia will ever go back into a lockdown, but you can’t be so sure. Distributors need to make sure they use web-based systems that allow them to trade autonomously no matter what. The benefit of using web-based systems like EasyVend is you can manage your day-to-day tasks anywhere at anytime - all you need is an internet connection. Web-based solutions will allow your business to operate seamlessly during an enforced lockdown if it does eventuate throughout 2022.

Related article: 4 Ways To Save Your Food & Beverage Distribution Business During Covid and Beyond.

5. Trading Online

To be successful in 2022 Australian Food and Beverage Distribution businesses MUST have an Online Ordering Website. Many Australian customers are now shunning their regular distributors in favour of those who offer an easier online ordering experience.

For many Distribution businesses, transitioning to an online ordering system can be difficult. If your businesses is looking to implement an online ordering website for your customers, you need to make sure you chose your provider correctly. Your Online Ordering website needs to simplify your customers ordering process and streamline your businesses operations.

Related Article: 5 Features Every Online Ordering Website Should Have.

Final Word,

2022 will be a year of many challenges and opportunities. Every Food and Beverage business is going to have tough days in 2022 but what will set yourself apart is the way you plan and manage the effects those challenges have on your business. 

To read more articles like this visit our latest news section here.

About EasyVend

For food and beverage vendors and distributors, EasyVend supports and automates every part of your business, freeing you up to grow your sales unlike other ERP systems that are designed more for wholesale suppliers than for distribution businesses like yours.

EasyVend includes all your everyday features like Inventory Management, Invoicing, Receipting, Route Management, Automatic Credit Card Payments, Online Ordering, Xero Integration, Customer Reminders, Business Reporting and so much more.

Call us today on 1300 473 744 to see what sets us apart or submit the form below for a no-obligation free demo of EasyVend.

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