Adversity inspires. The juddering disruption of food supply chains in the wake of the pandemic is demonstrating how companies must rethink everything they know about end-to-end food supply.
We didn’t need a pandemic to observe pain points in the food supply chain; demographic shifts, climate change, and shifting consumer desires are among the issues that have been compelling producers to change their logistical approaches in recent years.
The crisis has added significant fuel to those fires, including increasing volatility in supply, redhot demands for trucking while 3PL providers are struggling to increase capacity, the slowing of international trade as a result of lockdowns and other containment measures, as well as heightened food safety worries that may eventually lead to stricter regulatory standards.
“The future of the food logistics will be greatly influenced by macro factors such as government lockdown policies as they continue to battle the pandemic. Food service logistics will continue to decline as the constraints such as reduced hours or full closures on the hospitality services continue to be implemented,” Susan Boylan of Gartner’s supply chain practice told industry pub Food Logistics.
“Logistics operations supporting the retail trade will come under increased pressure as remote working and dining at home is on the increase, driving volume of home food purchases,” she added. “Perishability and shelf life will also continue to be a key area of focus for food product not consumed under normal demand patterns, which will potentially lead to warehouse congestion, waste, and inventory write-offs of product. The management of stock loss will need to be a closely monitored process in the months to come.”
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