How do I explain a food distributor’s weekly order cut-off times to a buyer?
Lay out the week as a timeline: when customers must order, when suppliers need your orders, when picking starts and when trucks leave. Then explain which cut-offs are firm, which bend for good customers and what happens when someone misses one. A buyer should see the rhythm and the exceptions.
Draw the week on a single page. Mark each customer group’s order deadline, the deadline for your own orders to suppliers, the picking window, loading and each route’s departure. Buyers learn more from a diagram than from a paragraph, and drawing it will show you where your own routine is inconsistent.
Then explain the rules behind it. Which cut-offs are firm because suppliers or routes cannot move? Which are flexible for particular customers, and who decides? Describe what happens with late orders: do they roll to the next day, get a surcharge or get an exception from the owner? Be honest about how often exceptions occur, because a buyer who finds out after closing will feel misled.
Add what customers think. Some depend on the deadline for their own prep, and a change by a new owner could disrupt them. Say which cut-offs you would keep unchanged. Your accountant can help show how late-order handling and rush deliveries affect margins, which is where a buyer will look next. Offer a few real recent examples of a missed cut-off and how it was handled. Describe also how cut-offs differ for standing orders and for one-off requests.
Key takeaways
- Draw the week from customer order deadline to truck departure on one page.
- Say which cut-offs are firm, which bend and who decides.
- Tell the buyer which timings customers rely on and should not change.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaIndustryHow to sell your business
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