One of Italy's senior retail directors has revealed how the development of a central logistics platform for fresh produce has contributed to greater profitability across its network of stores.
In 2008, the Sicilian branch of Conad (National Retailers' Consortium) decided to outsource its packhouse and asked Cediof to develop a new platform that would improve handling of fresh produce from its various suppliers in the region.
According to the division's director general Giorgio Ragusa, the need to ensure competitive prices, a short supply chain and guaranteed quality are fundamental elements of a successful strategy within the fresh produce sector, especially during a recession, making consolidation and efficiencies along the supply chain more necessary than ever.
'Today, the platform is certainly a point of reference for the distribution of fresh fruit and vegetables – one that is able to guarantee quality, safety, traceability and innovation thanks to the support of strong and dependable suppliers,' said Mr Ragusa.
'But above all, the facility is able to offer our members an efficient and competitive service, helping them to improve their margins,' he added.
As reported by Italiafruit News, Mr Ragusa was speaking during a convention organised by Conad Sicily in conjunction with Cediof, the company which manages the new fresh produce distribution platform.
'Only an organised platform, which cuts out intermediary steps and is operated by a strong and forward-thinking partner, is able to supply retailers with the ideal tools to implement a winning commercial strategy,' commented Salvatore Andolina, president of Cediof.
The convention was attended by a number of leading members of the Italian fresh produce trade, including Chiquita Italia commercial director Paolo Troise and VI.P Val Venosta director general Josef Wielander.
Also present was Claudio Gamberini, head fresh produce buyer at Conad: 'Conad's fresh produce department plays a strategy role which differentiates its stores from those of its competitors and, above all, creates trust among its customers thanks to the relationship those customers have with the store owner, who is a Conad member and present at the point of sale.'
Mr Gamberini added: 'Conad believes in the strength of the fruit and vegetable sector and is focused on the quality of its offer and on innovation in its own private label products, which carry the Conad Percorso Qualità and Sapori & Distinti brands.
'These stand out because of the continued checks that are implemented along all of our supply chains and which go beyond the legal requirements, as well as the various controls we have in terms of companies' ethical behaviour relating to labour and the environment.'
Mr Gamberini added that sales of 450 products under the Conad Percorso Qualità brand last year generated more than €220m in turnover, a result he described as 'more than satisfactory'.
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