Purchasing News Hubb
Advertisement
  • Home
  • Procurement
  • Supply Chain
  • Contact us
No Result
View All Result
  • Home
  • Procurement
  • Supply Chain
  • Contact us
No Result
View All Result
Purchasing News Hubb
No Result
View All Result
Home Supply Chain

3 reasons why food supply chains are still struggling post COVID

admin by admin
October 27, 2022
in Supply Chain


From key ingredient shortages to surging prices for traditionally inexpensive staples like milk, wheat and butter, the food supply chain is in a severe state of disrepair — and disarray. Just about everyone is feeling it, too, from the end consumer to grocery stores, restaurant chains and sole proprietorships, wholesale entities, farmers and distributors. In many respects, these challenges are a carryover from COVID-19’s impact, as 96% of restaurants encountered supply delays last year affecting foodstuffs that are essential to operations, according to a National Restaurant Association poll.

The persisting bottlenecks remain noteworthy, however, because the pandemic — for all intents and purposes — is over. But if that’s indeed the case, why are food supply chains still struggling so mightily? Here are a few contributing factors:

1. Soaring inflation
The rising cost of living has a way of affecting just about everything, since just about everything business related costs money. And the food industry is feeling the pinch, forcing companies to trim their productivity to remain profitable. As a separate survey from the National Restaurant Association points out, nearly 90% of respondents are spending more on business expenses than they were in 2019.

2. Hiring challenges
Inflation occurs for a variety of reasons, but at the root of it is too much money chasing after too few goods. In other words, demand is vastly exceeding supply. In the food industry, much of this stems from so many positions going unfilled. From grocery stores to restaurants to warehouses and more, just about every business with any affiliation to food is struggling with hiring. The truck driver shortage is also contributing to the food industry’s labor woes, since truckers are the ones who transport the equipment, ingredients and other materials the industry needs to produce the goods customers buy.

Grocers, restaurants, manufacturers and other food-related businesses are in recruitment mode. Grocers, restaurateurs, manufacturers and other food-related business owners are in recruitment mode.

Plus, since customers have more channels to select from when it comes to how they buy food — such as e-commerce or curbside pickup or delivery via a third-party app service provider — fulfilling these orders requires that many more workers. Not having them creates inconsistencies that cause a chain reaction throughout the supply chain.

3. Problems with packaging
For convenience, ease of handling, safety, storage and hygiene, food needs to be properly packaged and bundled while getting ingredients and other edibles from Point A to Z and all the spaces in between. But just as certain comestibles are hard to come by, the same can be said for packaging materials.

This is particularly true when it comes to the plastics and aluminum cans needed for the bottling of beverages like soft drinks, water, juices and others. As The Washington Post reported late last year, 13% of beverage options that are typically sold in grocery stores weren’t available this past December. That compares to an overall out-of-stock range of between 5% and 10%. These bottling dilemmas are still in place today, which is why many alternative flavor options or choices — like zero calorie, light or caffeine-free — aren’t as widely available as the products brands are known for or sell the most of.





Source link

Tags: 3 reasons why food supply chains are still struggling post COVIDThe Strategic SourcerorThe Strategic Sourceror: 3 reasons why food supply chains are still struggling post COVID
Previous Post

Procurement Leadership Blogs : Recruitment Blogs

Next Post

Proactis ReThink ’22 focuses on what’s needed for organizational growth

Next Post

Proactis ReThink '22 focuses on what's needed for organizational growth

Recommended

Four procurement trends to look out for in 2023

January 12, 2023

PODCAST: Designing an end-to-end ecosystem approach to procurement – Part three

August 22, 2022

Don't miss it

Supply Chain

Three supply chain risks that will hurt your bottom line in 2023

March 29, 2023
Procurement

Procurement Heads Awarded Kaleida Gold Seal

March 29, 2023
Supply Chain

Vendor Analysis — Supplier data management solution overview

March 28, 2023
Procurement

Procurement Leadership Blogs : Procurement Recruitment Blogs

March 28, 2023
Supply Chain

Vendor Analysis — Payment terms analytics solution overview

March 25, 2023
Supply Chain

SRM needs a CRM makeover in major procurement systems

March 24, 2023

© Purchasing News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Procurement
  • Supply Chain
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • Procurement
  • Supply Chain
  • Contact us

© 2022 Purchasing News Hubb All rights reserved.

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/