Baking & Snack - May 2014 - 91

in added costs and waste, but the fleet itself - from the
drivers to the vehicles carrying the product - makes up
a large chunk of change in a bakery's budget. By turning
the distribution fleet over to independent contractors,
a bakery can eliminate labor costs associated with the
drivers and maintenance and ownership of the trucks.
According to John Staker, president, Distribution
Consultants, Inc., Purchase, NY, many of the largest US
bakeries have already made the switch to independent
contractors. Those that made the switch experience an
immediate increase in sales of 5-15%. Unlike drivers on
company-owned routes, independent contractors own
the trucks and make a 20-25% profit margin on every
unit of product they sell. This motivates them to sell
more baked goods to retailers and provide better customer service, according to Mr. Staker.
Despite the eliminated costs of managing an entire fleet
of trucks and drivers and the increase in sales and customer satisfaction, some bakers have resisted turning to
independent contractors because they're concerned about
the loss of control. "Managers' first worry is loss of control
of marketing, product and driver," Mr. Staker said.
They are also concerned about the appearance of the
trucks and professionalism of drivers, all of which Mr.
Staker said companies can exert some control through
agreements with their new independent contractors. He
added it's in the contractors' best interest to provide the
best customer service because they have a stake in the
business.
Turning an employee-driven fleet into independent
contractors can take about six months to a year. A consultant can offer an economic analysis to ensure the

bakery saves money while still making the routes viable
businesses for drivers to own. "Payroll tax, healthcare,
pension, fleet maintenance all goes away for the bakery,"
Mr. Staker explained. "You do have to set profit margins,
though, so the driver can make up for those things."
Typically, Mr. Staker said the transition to independent contractors is met with enthusiasm by the drivers
and much of the baking industry has already made the
change. "It works well in this industry," he said. "You
need someone servicing the shelf, and you get that with
this system."
The distribution side of the bakery is ripe with opportunities for improvements, and there are plenty of solutions
that simultaneously save money and improve sales. Those
are the kinds of solutions that cannot be ignored.

Put-to-light systems
reduce errors, improve
order tracking and
eliminate paper in the
bakery warehouse.
Pcdata

*

Find resources for distribution by visiting
www.esourcebaking.com. Browse by category under
Equipment, and click on Ship/Deliver/Transport for listings.

www.bakingandsnack.com / May 2014 Baking & Snack 91


http://www.esourcebaking.com http://www.smartwattinc.com http://www.bakingandsnack.com

Baking & Snack - May 2014

Table of Contents for the Digital Edition of Baking & Snack - May 2014

Baking & Snack - May 2014
Table of Contents
Table of Contents
Editorial - Going with a gut feeling
Newsfront - Protein consumption rising, carbs falling
Shearer’s gobbles up Medallion Foods
ABA, QBA honor Lepage’s legacy
Gen Y influence buying most
Flowers reveals plans for former Hostess plants
In Brief/People
Innovation Centers - Getting Together
PBF Pita Bread Factory - Special to the Table
Band of brothers
More than just pita
Desserts - The Sweet Spot
Mashups on the menu
Appealing to millennials
One sweet swine
Bread Aisle - Headway in the Bread Aisle
Variety Syrups - Sweet Selections
In a league of its own
Is it a sweetener? Is it a fiber?
Ingredient App - Bases Loaded
Finishing Systems - Crossing The Finish Line
Refrigeration & Freezing - Low Temps, High Demands
Waste heat absorption
Distribution Technology - Counting the Costs
Solutions in every size
Q&A - Clean Equipment Design - New Rules of Engagement
Industry Insight - Benchmarking for Success
Events
Correction - IFT 2014 Convention
Innovations
Ingredient News
Products & Packaging
New on the Shelf
Marketplace
Ad Index
New Product Spotlight
Baking & Snack - May 2014 - Baking & Snack - May 2014
Baking & Snack - May 2014 - 2
Baking & Snack - May 2014 - 3
Baking & Snack - May 2014 - 4
Baking & Snack - May 2014 - 5
Baking & Snack - May 2014 - 6
Baking & Snack - May 2014 - 7
Baking & Snack - May 2014 - 8
Baking & Snack - May 2014 - Table of Contents
Baking & Snack - May 2014 - 10
Baking & Snack - May 2014 - Table of Contents
Baking & Snack - May 2014 - Editorial - Going with a gut feeling
Baking & Snack - May 2014 - 13
Baking & Snack - May 2014 - Shearer’s gobbles up Medallion Foods
Baking & Snack - May 2014 - 15
Baking & Snack - May 2014 - Flowers reveals plans for former Hostess plants
Baking & Snack - May 2014 - In Brief/People
Baking & Snack - May 2014 - 18
Baking & Snack - May 2014 - Innovation Centers - Getting Together
Baking & Snack - May 2014 - 20
Baking & Snack - May 2014 - 21
Baking & Snack - May 2014 - 22
Baking & Snack - May 2014 - 23
Baking & Snack - May 2014 - 24
Baking & Snack - May 2014 - 25
Baking & Snack - May 2014 - PBF Pita Bread Factory - Special to the Table
Baking & Snack - May 2014 - 27
Baking & Snack - May 2014 - Band of brothers
Baking & Snack - May 2014 - 29
Baking & Snack - May 2014 - 30
Baking & Snack - May 2014 - 31
Baking & Snack - May 2014 - 32
Baking & Snack - May 2014 - 33
Baking & Snack - May 2014 - More than just pita
Baking & Snack - May 2014 - 35
Baking & Snack - May 2014 - 36
Baking & Snack - May 2014 - 37
Baking & Snack - May 2014 - 38
Baking & Snack - May 2014 - 39
Baking & Snack - May 2014 - 40
Baking & Snack - May 2014 - 41
Baking & Snack - May 2014 - 42
Baking & Snack - May 2014 - Desserts - The Sweet Spot
Baking & Snack - May 2014 - 44
Baking & Snack - May 2014 - 45
Baking & Snack - May 2014 - Mashups on the menu
Baking & Snack - May 2014 - 47
Baking & Snack - May 2014 - 48
Baking & Snack - May 2014 - 49
Baking & Snack - May 2014 - Appealing to millennials
Baking & Snack - May 2014 - 51
Baking & Snack - May 2014 - One sweet swine
Baking & Snack - May 2014 - 53
Baking & Snack - May 2014 - 54
Baking & Snack - May 2014 - 55
Baking & Snack - May 2014 - 56
Baking & Snack - May 2014 - Bread Aisle - Headway in the Bread Aisle
Baking & Snack - May 2014 - 58
Baking & Snack - May 2014 - 59
Baking & Snack - May 2014 - 60
Baking & Snack - May 2014 - Variety Syrups - Sweet Selections
Baking & Snack - May 2014 - In a league of its own
Baking & Snack - May 2014 - 63
Baking & Snack - May 2014 - 64
Baking & Snack - May 2014 - 65
Baking & Snack - May 2014 - Is it a sweetener? Is it a fiber?
Baking & Snack - May 2014 - 67
Baking & Snack - May 2014 - 68
Baking & Snack - May 2014 - Ingredient App - Bases Loaded
Baking & Snack - May 2014 - 70
Baking & Snack - May 2014 - Finishing Systems - Crossing The Finish Line
Baking & Snack - May 2014 - 72
Baking & Snack - May 2014 - 73
Baking & Snack - May 2014 - 74
Baking & Snack - May 2014 - 75
Baking & Snack - May 2014 - 76
Baking & Snack - May 2014 - 77
Baking & Snack - May 2014 - 78
Baking & Snack - May 2014 - Refrigeration & Freezing - Low Temps, High Demands
Baking & Snack - May 2014 - 80
Baking & Snack - May 2014 - 81
Baking & Snack - May 2014 - 82
Baking & Snack - May 2014 - 83
Baking & Snack - May 2014 - Waste heat absorption
Baking & Snack - May 2014 - 85
Baking & Snack - May 2014 - 86
Baking & Snack - May 2014 - Distribution Technology - Counting the Costs
Baking & Snack - May 2014 - Solutions in every size
Baking & Snack - May 2014 - 89
Baking & Snack - May 2014 - 90
Baking & Snack - May 2014 - 91
Baking & Snack - May 2014 - 92
Baking & Snack - May 2014 - Q&A - Clean Equipment Design - New Rules of Engagement
Baking & Snack - May 2014 - 94
Baking & Snack - May 2014 - 95
Baking & Snack - May 2014 - 96
Baking & Snack - May 2014 - Industry Insight - Benchmarking for Success
Baking & Snack - May 2014 - 98
Baking & Snack - May 2014 - Correction - IFT 2014 Convention
Baking & Snack - May 2014 - Innovations
Baking & Snack - May 2014 - Ingredient News
Baking & Snack - May 2014 - Products & Packaging
Baking & Snack - May 2014 - 103
Baking & Snack - May 2014 - New on the Shelf
Baking & Snack - May 2014 - 105
Baking & Snack - May 2014 - 106
Baking & Snack - May 2014 - Marketplace
Baking & Snack - May 2014 - 108
Baking & Snack - May 2014 - 109
Baking & Snack - May 2014 - 110
Baking & Snack - May 2014 - 111
Baking & Snack - May 2014 - 112
Baking & Snack - May 2014 - Ad Index
Baking & Snack - May 2014 - New Product Spotlight
Baking & Snack - May 2014 - 115
Baking & Snack - May 2014 - 116
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