ABSTRACT
This chapter discusses purchasing and logistics management in food distribution. Food purchasing touches on and impacts every participant in the supply chain, from farmers to consumers. Originally, business purchasing was a tactical function based on transactional relationships and focused on paying the lowest price. Logistics encompasses numerous activities that occur throughout the food supply chain. Logistics has become a competitive tool for supply chains to bring products to market in the right quantity at the right place and time. Many food companies are outsourcing some or all their logistics activities, from transportation and warehousing to inventory control. Logistics clustering is a rapidly evolving occurrence in supply chain management and logistics. But the large-scale purchasing and logistics systems that move food touch everyone along the chain and drive a significant portion of the global economy. Upstream logistics usually schedules regular shipments (for example, from manufacturers to warehouses).
