What is happening: Food distributors in America are having to reshape their entire supply chains in order to cope with the rise on logistics costs.
Why is this happening: Companies are having to cope with higher freight transportation prices, as well as an increase in driver wages. They are also having to pay out for more warehouse space to store goods.
Who is affected: US Foods Holding Copr, Performance Foods Group Co, SpartanNash Co, and Sysco Co all reported rising costs in their most recent quarterly earnings.
Reshaping: Companies are reshaping their supply chains by transporting using smaller trucks, and investing in technology. They are having to purchase more warehouse space to stock goods too.
Customers: Customers are becoming more efficient, ordering all their goods in one order by planning ahead. This is forcing companies to shell out on the extra warehouse space.