The majority of Whole Foods’ purchasing occurs at the regional and national levels, which the company says enables it to negotiate better volume discounts with major vendors and distributors while allowing stores to focus on local products. The company also owns a produce center for the procurement and distribution of the majority of its fresh products.
Whole Foods operates four seafood processing and distribution facilities, a speciality coffee and tea procurement and brewing operation, and 11 regional distribution centers that focus mainly on perishables distribution across North America and the UK. In addition, the company also has three regional commissaries and five bakehouse facilities, all of which distribute products directly to stores. Other products are generally sourced through a combination of speciality wholesalers and direct distributors.
United Natural Foods is Whole Foods’ largest third-party supplier and the primary supplier of dry grocery and frozen food products, accounting for approximately 32% of the retailer’s total purchases in 2013. The company’s relationship with United Natural Foods extends through 2020.
View more information: https://marketrealist.com/2015/11/evaluating-whole-foods-marketing-purchasing-strategies/