How does Publix goods get to the different stores?

Answer 1

As with all service companies, Publix employs a mix of direct sales and distributed goods. The supply chain is a marvel of cost effectiveness, computer awareness, and logistics.

For some departments in the grocery stores, there are "buyers" related to that particular category. These specialists literally go to the suppliers and observe the operation and decide if this product would fit in the grocery.

One example would be the produce buyers. They must work closely with the growers to get the produce to the stores on time and in season to arrive at peak condition in the store. This sometimes means that there is a very small window of time in the case of things like strawberries, lettuce, or peaches. Publix buyers investigate the farms they do business with, insuring that they comply with labor practices as well as providing excellent product. From that point, they keep close watch on weather and growing conditions in order to keep prices competitive.

Most of what Publix (and other companies who provide goods) buys for sale in their stores is collected in warehouses, known as distribution centers. The various items, from paper products to deli meats, are arranged in the distribution centers according to category. Grocery items are stored in the grocery section, produce in the produce area, you get the idea.

Every day the distribution teams work on fulfilling the store requirements in a timely manner. Just like your grocery list, stores have a daily list of items that come from the distribution center. One store might have a high requirement for paper and laundry products, another might have a high requirement for frozen foods. Just like your family, each store has certain things that are popular. This "list" is entered by computer, and the company watches the trends to "stay ahead" on buying things for the shelves.

The distribution center fills the list, also noting things they don't have right this second, packs and loads a truck destined for a particular store, and sends out the truck as quickly as possible. There are different types of trucks, so a store might get as many as six deliveries in a day. Obviously a frozen food truck cannot carry produce or milk, so routes are planned with several "orders" on it to different stores in the areas. It is more efficient to have one truck carry three or four frozen food orders in a 20 mile area than have three trucks do the same thing.

At the store level, the truck is unloaded by the store team involved (produce unloads produce, grocery unloads grocery, ect.), and the truck moves on to the next store. When the truck is empty, it is refilled with the pallets, cardboard bales, and other recyclables that Publix collects and reuses. The truck does not return to the distribution center empty.

Of course from the truck to the shelves, Publix employees divide the stock, check the invoices, and stock the shelves. It can be estimated that the time from arrival at the distribution center to the store location is less than 12 hours.

There is a second way that Publix gets products for the store. Certain things such as milk, brand name ice cream, alcohol products, bread and snack items are provided directly by the companies involved. This is known as direct sales distribution or DSD. There are salesmen/deliverers known as vendors who represent these companies and who stock the shelves with their own product.

The vendors work directly with the store to supply ad items and normal daily needs. They go to the store daily in most cases, check the shelf, and restock the items that are needed. The vendor also removes out of date product, cleans her areas on the shelf and makes sure that prices are correct.

Some of the companies that find this arrangement excellent are the local bread companies, local milk companies, Frito-Lay, Nabisco, Keebler, and the soft drink companies. They find that they are able to better control the quality on the shelf and the shelf appearance when they have a dedicated employee that works independently from the store. Publix finds that it is cost effective to have such vendors checking daily rather than dedicate employees to do the job.

Vendors work closely with store management in order to have product on hand for sales and promotions. Management benefits when this happens because they do not need to devote back room space to items that might not be necessary.

Computers have proven invaluable for this whole process. From current trends to stock levels to logistics, the computer is vital to today's grocery industry. The computer system will highlight an overlooked item that is out of stock, alert management to critical stock levels of certain items, enable extra ordering for events, and recommend future stock levels. It is an invaluable tool for the management of literally thousands of items available at your local Publix.