Food and Beverage SMEs: Are you ready for the Amazon effect?

Part 1 of the four-part series “4 fresh ways to take on supply chain challenges in Food and Beverages”

Amazon is a Goliath among tech giants, having moved from selling books to electronics to general merchandise and, more recently, fastmoving consumer goods. Almost two years ago Amazon acquired Whole Foods,  an upscale grocery store, which gives the online retailer bricks-and-mortar locations as well as closer access to consumers with last mile distribution. Faced with the combined buying power and omnichannel smarts of the amazon-WholeFoods synergy, supermarkets are under greater pressure than ever to reinvent themselves. This acquisition is likely to be a game changer in terms of how the grocery model operates in the US, with implications beyond the food segments for retail in general.

“… Whether you are looking to work with or against these tech-savvy organizations, you have to change the way you do business. ” 

The problem is that Amazon is a first and foremost a tech company that happens to sell products, making it harder for traditional retailers to keep up with the fast-evolving technology Amazon has. The question small and midsize enterprises should be asking themselves is, how do we stay competitive and relevant in the Food and Beverage area?  Here are the key areas to focus on for operational excellence: