Adapting a Commercial Supply Chain to Deliver Consumer Products
While grocery stores may be sold out of many food items, farmers are dumping massive amounts of unsold food because it has been produced in a commercial supply chain where demand has crashed.
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www.nytimes.com
Though consumers are seeing food shortages, the commercial food supply is still strong. Without commercial purchasers, milk and produce are going to waste, unable to reach the consumers who need them.
To adapt to this massive shift from commercial to consumer purchasing, suppliers need to quickly adapt to a new food industry in terms of packaging, marketing, and retail selling.
This is a challenge to—
suppliers, who rarely market and sell to consumers. Even with this shift, their production quantities are still much higher than any retailer would want or need.
With a rise in logistical issues from the supply chain to the end user, companies looking to quickly sell and reduce long-term risk need to add more flexibility throughout the supply chain.
Being prepared to sell to retailers will help, but being prepared to sell to consumers will be even more impactful, and could make suppliers seriously competitive in the market by driving down costs. D2C continues to challenge retail and we expect to see this continue both during and after the pandemic.
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Words by
SR. EXPERIENCE STRATEGIST
Tatiana Chilcovsky