Park River is the dedicated redistribution hub. By redistribution, we mean in and out the same day – it is not a warehouse.

Hoople and Edinburg are communities with small, existing grocery stores. One is independently owned, and one is community-owned. Park River, Hoople and Edinburg will place their orders collectively and the order will be delivered to Park River by the supplier. This step does not require any investment. Park River has adequate sorting space and space to hold frozen and refrigerated foods during the sorting and pre-delivery time period.

We have been able to document an average 14% price difference on wholesale food products between stores 15-20 miles from each other simply based on volume. This collective purchasing increases the total volume, improving the price for all communities. It will also help improve variety as stores will be able to partner in the purchase of cases at a volume discounted price.

Adams is a community without a grocery store. The community is interested in a climate-controlled grocery locker system. This system includes lockers that hold ambient, frozen and refrigerated products, an online ordering software system and a climate-controlled delivery truck. The people in Adams would be able to place their orders online via a credit card transaction to Park River. Park River would deliver the products to the locker and send either a text or email message informing the customer the product has been delivered and assign them a code. The customer can go to the lockers, enter the code, and the assigned doors pop open. Once the product is picked up, the store receives confirmation the transaction is complete.

Fordville is also without a grocery store. A community member is interested in a climate-controlled grocery locker system. Fordville could simply join the collective purchasing group rather than worrying about attracting a supplier. Again, the increased volume would benefit all.

By including the locker system in the redistribution hub, we will bring one small store online, we will have a delivery truck for the hub, and we will possibly bring healthy food access to two small communities without.

We anticipate this could also be a way to hub local foods. Suppliers of local produce, bakery items, inspected meat or other items could deliver products to the hub to have them delivered on the same truck as the conventional wholesale products. There could be other business partners, for example a local pharmacy.