Lipari Foods Inc. recently moved into a new 270,000-square-foot facility.

“Customer service is the backbone of our operation, and we are constantly trying to improve everything we do to help our customers,” President Thom Lipari says. “Our competitors are warehouses and wholesalers, but we have built our business to do better than them.

“For example, we deal with perishables, so we have set up our operations so we can get the products to our customers on time while they are still fresh. Our goal is to support our customers in their operations. We help them with their consolidations and help operators to create brand strength. Our directors are experts in this business, so they go to our customers, help them organize their stores, help them find ways to direct their customers to certain products or areas and also help them increase sales. We deliver more than just goods by giving extra.”

For example, he explains, the A&P recently sold off its Farmer Jack operations in Detroit, and Kroger and some independent owners bought the stores; some of the new owners happened to be Lipari customers. Lipari Foods sent teams to its customers to help them convert the Farmer Jack locations to their own formats. The goal, Lipari says, was to complete the turnaround quickly and help its customers show their brand in the converted store.

“Our merchandising staff is very talented,” Lipari says. “They frequently help customers by resetting their stores or specific departments, which can provide customers with a 15 to 20 percent increase in sales because of the look and positioning items properly.

“Grocery store owners need to attract attention to the products they want to sell, and our people are good at helping them do that,” he adds.

Managing Better
To ensure its operations are well-equipped to provide the best service to its customers, the family company invests “a lot of money” on technology, Lipari says.

Three years ago, he explains, the company implemented a new computer system that improved its ordering and handling systems and added an online ordering system. Lipari says this allows customers to see their purchase history, monitor how products are selling and run reports to see trends across their entire chains of stores.

“Everything we do to improve our operations is to help our customers manage their business better,” he says. “Not long ago, we put in a voice selection program in our warehouse. This allows us to use a computer to select items for an order. This should definitely minimize any miss-picks.”

Growing Strong
The company recently moved into a new 270,000-square-foot facility. Lipari explains it has better temperature control and the docks are refrigerated, ensuring products are kept at their correct temperatures. Additionally, Lipari Foods properly maintains its fleet to provide faster delivery cycles; the company promises next-day delivery. Lipari notes the company runs dual-temperature refrigerator units on its trucks, although many competitors don’t do this.

“We are very conscious of having the right equipment at all times to ensure we keep things fresh for our customers,” he says. “Lipari Foods is at the leading edge of monitoring product integrity as it moves through our system.”

The company will continue to improve its operations and add to its services, Lipari says, in an effort to keep to its strategy of “serving the perimeter of supermarket stores.” Currently it provides bakery, deli, specialty and candy products, but it plans to launch its seafood division soon.

“We want to continually bring new options to our customers,” he says. “Each division is run almost as a separate company because we don’t want everyone to be doing everything. We want our people to focus on their category and their strengths so our customers are getting the best service.”

Lipari Foods serves nine states throughout the Midwest, dipping into parts of the Southern and East Coast markets, and may expand by going further east. Lipari says the company also may serve more of the South someday, but it will need a new facility to continue to guarantee next-day delivery.

“We have to continue to grow,” he says. “Growth will be the result of better service, adding service volume and adding new products to our inventory. We continue to grow year after year, so we know these three things – in addition to our team of good and loyal people – will ensure our success. We have to be constantly looking ahead to be better and grow; otherwise, the market will take you down.”