As the culinary landscape continues to evolve, US Foods stands at the forefront of this transformation, showcasing how effective e-commerce strategies can make a substantial impact. With over $35 billion in annual sales, the Rosemont, Illinois-based food distributor is achieving nearly 100% customer adoption of its e-commerce tools, specifically designed to streamline the procurement of ingredients for chefs and commercial kitchen operators.
Gene Carbonara, the vice president of e-commerce and digital at US Foods, highlights the critical role of customer feedback in shaping their digital technology. In a recent interview, Carbonara emphasized that they have received more than 10,000 pieces of feedback this year alone from customers and internal associates. “We have a comprehensive customer feedback program integrated into our agile development methodologies,” he states. This strategy has translated into over three-quarters of customers utilizing online ordering via the MOXē e-commerce platform.
The MOXē platform, which stands for “making operators’ experience easy,” offers an array of tools that empower clients to manage their operations more efficiently. This includes innovative features such as real-time food costing, profit margin tracking, and personalized menu recommendations. For example, a significant number of food establishment operators within the US Foods customer base—72%—identified managing food costs as their most pressing challenge. Responding to this, the company rolled out a digital food cost calculator that integrates seamlessly with existing inventory management applications.
Using customer purchase data, this food cost calculator helps restaurants monitor costs and profitability for every ingredient. Carbonara explains, “We have real-time information on prices, invoices, and order volume… [this tool] helps a customer understand their food costs in relation to their sales.” Offering this advanced tool at no additional charge underscores US Foods’ commitment to providing value-added services that meet the needs of its customers.
The multifaceted nature of the MOXē platform supports US Foods’ omnichannel strategy, allowing operations through three primary channels: broadline distribution, the Pronto service for smaller orders, and the US Foods Direct endless aisle service. The latter enables customers to select from over 400,000 products for direct shipment, enhancing convenience. Furthermore, features like AI-enhanced site search and product recommendations have led to noticeable increases in order volumes.
Additionally, the platform’s online merchandising strategies have successfully boosted average order volumes, adding approximately 1.5 cases of products to every order. This increase exemplifies how efficient e-commerce practices can lead to higher sales and improved customer satisfaction. Chefs and kitchen staff can also leverage the platform for menu development and cost calculations, allowing for streamlined operations and better financial oversight.
“Access in real time from your mobile device to all of your invoices allows for significant time savings and operational efficiency,” Carbonara notes. The extent of functionality does not stop there; a valuable digital tool called “Where’s My Truck?” provides real-time updates on delivery status, factoring in weather and traffic conditions to enhance delivery time accuracy by 20%. Such advancements exemplify how technology can significantly enhance the logistics aspect of food distribution.
With more than 70 distribution centers and over 6,500 trucks in its fleet, US Foods has invested heavily in technologies that enhance delivery efficiency. The deployment of Descartes digital routing technology not only improves case delivery per month but also shifts traditional paper invoices to a more reliable mobile-based system.
Company leadership, including CEO David Flitman, is dedicated to the ongoing enhancement of the MOXē platform. Flitman emphasizes, “Customer service tied to digital commerce is among the company’s four strategic pillars.” This dedication reflects a broader industry trend where businesses prioritize digital customer experiences as a critical component of their operational strategies.
From a financial perspective, US Foods’ commitment to digital transformation has yielded notable results. For the nine months ended September 30, the company reported a 6.5% year-over-year increase in net sales, amounting to $28.39 billion, with net income climbing to $428 million—a 19.2% growth. By the end of 2023, full-year net sales reached $35.60 billion, a 4.5% increase from the previous year.
Looking ahead, Carbonara notes that US Foods remains focused on enhancing its digital capabilities. Currently, 84% of customers place orders through the MOXē platform, yet Carbonara sees further opportunities for growth. “As we continue to innovate, you’re going to see more features that are mobile and text-based, just because of the ease and convenience that our customers are really looking for.”
In a landscape where convenience and efficiency are paramount, US Foods’ strategic focus on digital transformation serves as an exemplary model for others in the B2B sector. By prioritizing customer feedback and continuously adapting to industry requirements, they are not only enhancing their service offerings but also paving the way for the future of e-commerce in the food service industry.