White Paper Series

2007 Food Logistics Industry Report
This industry-wide report identifies common practices, challenges, and emerging trends within the U.S. food logistics industry.

© 2007 Saddle Creek Corporation All Rights Reserved

2007 Food Logistics Industry Report
Introduction
During the first quarter of 2006, executives involved in warehousing and transportation management of food and beverage products were asked to participate in a survey to identify common practices, challenges, and emerging trends. There were 104 food logistics executives who participated, making the findings of this survey statistically valid.

Demographics of Participants
The majority of respondents were grocery companies, food and beverage processors or 3PLs located throughout the United States. Approximately one-third were with smaller or medium-sized companies earning less than U.S. $50 million in gross annual revenue. Many respondents have sizeable warehouse operations. More than one-fifth (22.3 percent) have at least one million square feet of DC/warehousing operations. More than half of the companies have between one and five DCs/warehousing locations. A significant number of companies (18.3 percent) have more than 15 locations. However, many do not operate significant warehousing operations of their own. In fact, nearly two-fifths (37.8 percent) have less than 100,000 square feet of space. Approximately three-fourths (76.9 percent) of respondents have dry/ambient DC/warehouse space. Fewer have refrigerated space (60.6 percent) or freezer space (39.4 percent). When it comes to the number of SKUs, respondents with dry/ambient DC/warehouse space are at both ends of the spectrum. While 15.4 percent have 10,000 or more SKUs, 21.4 percent have less than 50. More than half (55.4 percent) reported less than 1,000 SKUs. Respondents reported significantly fewer SKUs for