Posted by William Mullane | August 6, 2020
Supply chain disruptions from COVID-19 will take years to rebalance, particularly for the food industry
For food, implications stretch beyond when everyone else reaches a “new normal”
A chance discussion at a recent Idaho District Export Council (DEC) meeting led DEC Member Amanda Gibson, to write a fascinating article for the DEC detailing the impact of COVID-19 on the global supply chain. Amanda is the Owner of Radix Strategy, LLC in Boise who gained a depth of experience and knowledge working for and with global food manufacturers.
The catalyst for Amanda’s article was a question that has been asked by much of the general public since virus-related shutdowns began impacting the supply chain: can’t manufacturers just shift their production from foodservice to retail? Aren’t they making up for what they lost in restaurants by what people are buying at the grocery store?
Amanda shows why the answer is no – whether it’s toilet paper or food – due to the package size of the products, the way manufacturing lines are engineered, and the broader distribution systems that support each channel. Complexities of the food chain such as perishable raw inputs and highly regulated outputs make the web of decisions particularly more challenging for the food industry and all who supply it.