In the past few years, supply chains have been impacted across every industry. From shutdowns and labor shortages related to the COVID-19 pandemic to global conflicts and sanctions, companies have faced seemingly endless disruptions, and as a result have been forced to make major changes–bordering on reinvention, in some cases. Changes such as new technology adoption, new business models, and new demands from consumers point to a number of trends in the food supply chain for 2022—trends that are likely to continue and evolve in the coming years.
But what trends are having the biggest impact on the food supply chain in 2022, and what should companies be doing to ensure they’re resilient enough to withstand future disruptions? To gain some insight into the trends reshaping the food supply chain, we reached out to a panel of supply chain professionals and business leaders and asked them to answer this question:
“What is the most important food supply chain trend businesses need to be aware of in 2022?”
Meet Our Panel of Supply Chain Pros & Business Leaders:
Keep reading to learn what our panel had to say about the biggest food supply chain trends shaping the industry in 2022.
Sarah Krol
Sarah Krol has more than a decade of experience leading the strategic development of food safety programs and supporting global operations. At NSF International, she leads teams that create and implement innovative solutions to ensure safety of the global food supply chain including certification to GFSI benchmarked standards.
“The most important food supply chain trends businesses need to be aware of in 2022 are food resiliency and workforce reinvention.
- Food resiliency
Food production must become sustainable, and conventional brands and producers are increasingly jumping onboard this effort. Companies are putting action plans in place ahead of government mandates because they realize they must create a resilient, sustainable supply chain. Expect big commitments from the food sector to initiatives such as carbon neutrality/net zero, zero waste, regenerative agriculture and the circular supply chain in general.
- Workforce reinvention
The workforce shifts are far from over. In some cases we’ll see a drastic push for automation to eliminate reliance on manual labor. In other cases, we’ll see huge investments (from both private sector and governments) in attracting, training and retaining skilled workers. How companies effectively manage their workforce and the well-being of their employees will play a major role in how quickly companies stabilize, as much of the supply chain movement relies on skilled labor.”
Nick Carter
Nick Carter is co-founder and CEO of Market Wagon, an online marketplace that connects food consumers directly with local farmers and artisans. He’s the author of More than a Mile: What America Needs from Local Food and host of “More Than A Mile: A Local Food Podcast from Market Wagon.”
“Businesses need to better understand the value of a local supply chain rather than rely on a global one as the pandemic continues. There is an ever-increasing desire from consumers to know exactly where their dollars and resources are going. That desire corresponds with an ever-increasing need from businesses to connect directly with their customers.
That’s why Market Wagon added 25+ new coverage areas in the first 18 months of the pandemic; because once restaurants and physical farmers markets shut down with a stroke of a pen, there was no place for local food to go. Market Wagon is an online farmers market which now partners with more than 2,500 farmers, chefs and artisans across 20 states.
Local food and local supply is about a relationship—and it is more reliable and trustworthy than any claims a big label can make. People are willing to pay a little more if they know they can support a cause in addition to buying a product.”
Andy LaPointe
Andy LaPointe is the Founder of AgTracer and Traverse Bay Farms. They provide all natural and end-to-end food tracing and tracking from ingredient to finished product.
“Consumers are demanding complete traceability, transparency and authenticity in the food they eat. They want to know the backstory, growing and capture processes and more. Here is what consumers want:
- Traceability: Consumers are demanding to know where their food is grown. They want to know the source of their food.
- Authenticity: Certifications, growing practices, manufacturing practices and recipe ingredient sources are vital to building and maintaining trust with consumers.
- Food Safety: Food borne illness, contamination and food fraud results in serious health risks. Consumers want to be able to trackback farm-to-table agriculture and ingredient sources in value-added products.”
Joseph Giranda
Joseph Giranda is the Director of Commercial Relations at CFRRinkens, a global leader in the shipping of commercial cargo, specializing in the containerized shipping of motor vehicles.
“The most important food supply chain trend in 2022 is likely to be a more vegetarian focus. As the demand for vegetarian diets increases, it will be increasingly important to provide sufficient protein substitutes. India has given incentives for people to eat less meat given the impacts on their health and the environment. This also includes fish, poultry, and eggs.
The trend is also being followed by China, which has the world’s largest population. In fact, some Chinese officials have called for the country to become a vegetarian nation by 2040. While this may be a lofty goal, it’s clear that the trend away from meat is growing.
As businesses seek to cater to this trend, they will need to find innovative ways to provide protein substitutes. This could include plant-based meat replacements or processed foods that are high in protein and low in fat. With the right products in place, businesses can ensure that they are catering to the needs of their vegetarian customers.”
Nate Torres
Nate is the Founder of Imaginated.com.
“There are a few important food supply chain trends businesses should be aware of in 2022.
Digitalization:
With the pandemic, it’s a digital world out there. If the latest trends on social media are not followed, the target audience is not reached and feedback is not delivered, there is no way a business is making progress. The use of phones has changed the way consumers shop and therefore supply chain management has shifted business strategies. Shipment, inventory, and marketing have adapted to accommodate the rise in eCommerce.
Innovation:
Consumer demands can change with the tides. Anticipating what consumers want is great, but directing what they want is better. For this purpose, innovation is mandatory. For example, McDonald’s will introduce a new burger and new deal every few weeks/months in order to keep consumers on their toes.
Packaging:
With the increase in awareness regarding the use of environmentally friendly products, businesses have become very cautious of the processing and packaging of products. The “say no to plastics” movement has caused all businesses to move to polythene and paper bags. Recycling is also now on the peak more than ever as environmentalists will not spare a moment to report against the company that refuses to comply. There is also a rise in transparency as health experts now want to be aware of the entire process of being manufactured to being delivered.”
Daivat Dholakia
Daivat Dholakia is the VP of Operations at Essenvia.
“In 2022, we can expect the transport and driver shortage to continue.
Even before the pandemic, this was a problem. Since then, the problem has grown due to online commerce and pandemic-related issues. Driver turnover is extremely high, hovering around 90%—meaning that even if drivers are hired, they rarely stay for long. Food and beverage companies need to be prepared for a continuation of delays and disruption in the supply chain.”
Brian Ruhaak
Brian Ruhaak provides strategic recommendations for clients on how to leverage Surgere systems to solve business challenges. Brian has deep expertise in applying IoT technology to client cases across multiple industries, specifically through utilizing data to determine actionable insights.
“For nearly two years the global pandemic has completely disrupted supply chains. Products have been shorted, the demand for labor is high and organizations can hardly keep up with the rapidly changing consumer demands. While every industry has been impacted in some fashion, the food supply chain has been flipped upside down. The pandemic has forced supply chain leaders to respond quickly to the various challenges and implement new strategies that create efficiencies, enhance visibility, and most importantly control costs throughout their operation. In 2022, business leaders should focus on these supply chain trends within the food industry.
Near-Shoring and Multi-Shoring Supply
At the beginning of 2020, many organizations and consumers realized how dependent they are on manufacturing and supply from around the globe. Closed factories and downed production lines, congested ports, and halted international transportation resulted in product shortages on shelves and in our pantries and refrigerators. Historically, companies have adopted a single sourced, offshoring strategy due to the ability to have greater profit margins, product variety, and a streamlined supply chain. However, over the last two years this approach has created food shortages due to the disruption of the supply chain.
The global pandemic has shown us the vulnerability of operating using a single-source product strategy. Now, businesses have the opportunity to respond by completely transforming their approach. In 2022, supply chain leaders will look to near-shoring and multi-shoring manufacturing and procurement strategies to guarantee product availability into the future.
As organizations move away from a single-sourced offshoring strategy, they will begin to create a resilient supply chain and offer numerous benefits to businesses. Organizations will be less vulnerable to disaster events in supply locations that could lead to product shortages, whether it’s a pandemic, natural disaster, or international trade issue. Companies will be able to respond to changes in the demands of their end customers. Additionally, supply chain leaders will be able to take advantage of distribution efficiencies created by products being closer to end consumers or different market segments.
End-to-End Supply Chain Traceability Solutions
With the ever-changing and developing consumer demand, diversification of sourcing locations and partners and the introduction of new distribution channels, supply chains are becoming increasingly complex and volatile. This added complexity has created a greater need for visibility and efficiencies, and supply chain leaders are turning to end-to-end traceability and visibility applications.
2022 will see an introduction of various end-to-end traceability platforms within the food supply chain; companies and even consumers will be able to follow their food from farm-to-fork. Raw material, supply and finished goods will be serialized and tagged through the utilization of smart label technology, including passive RFID. This approach will allow each asset to be identified with a unique serial number while preserving specific data elements required for production, shipping, or sales. Supply chain leaders will enhance their planning, production, inventory, and shipment down to a unique asset level.
Additionally, to enhance inventory control and traceability, IoT technology is available that will automate the data collection process and increase the accuracy of data collection. All are designed to be autonomous and require minimal process change or human intervention. Accessed through cloud-based software technology, this data will enable businesses to actualize their supply chain and allow users to quickly identify inventory in real-time whether food is on the farm or at their doorstep.
Reducing Labor Needs through Technology Implementation
The demand for workers has skyrocketed to pre-pandemic levels in 2022, yet the supply of people available for work has not, leaving many companies impacted by labor shortages. Factories are unable to run production lines, restaurants are adjusting hours and retailers are scrambling to find employees. While many companies have responded to these shortages through wage hikes, this alone has not been able to meet the challenge entirely. In 2022, companies will respond by reducing the labor demand through the implementation of technology.
Historically, replacing jobs with technology was more of a faux pas; however, in today’s economy technology is becoming a means of survival. While we have seen some of this in prior years, 2022 will be a barrage of digital transformation. In retail grocery and restaurants, we will continue to see the implementation of self-checkout technology, ordering kiosks and mobile ordering platforms. Food manufacturers will implement robotics and automation to create efficiencies throughout their production process. These will include automation of scanning technologies, the introduction of smart labels and automated packaging lines. More specifically, repetitive tasks will be automated, and available labor will be shifted to complex tasks and more value-added activities resulting in reduction in headcount, reduced labor costs and overall efficiencies.
Omnichannel Distribution
Implementing an eCommerce operation is not a new idea for retailers; it’s been a growing trend due to a shift in consumer behavior over the last few years. However, the pandemic forced many brick and mortar retailers that had not yet adopted an eCommerce platform to dive in headfirst and launch rapidly. Consumers began making the majority of their purchases online, so eCommerce now has become an important strategy for retailers and food manufacturers.
In the food supply chain, the most successful companies are focusing on an omnichannel distribution strategy that allows their product to be available to customers in a variety of shopping channels, meeting the differing demands of their consumer segments. Businesses will continue to implement strategies such as buy-online, pick-up in store, local delivery fleets, traditional eCommerce and expanded use of delivery partners such as Instacart and GrubHub. Additionally, we will see more businesses transforming their brick-and-mortar operations to meet the changing consumer habits of customers, becoming pick-up destinations and make-to-order locations in addition to traditional stay and shop retail. Overall, omnichannel strategies will be focused on meeting consumers’ preference of having products immediately available.”
Seb Evans
Seb Evans is the Co-Founder of Banquist, a company that allows customers to learn cooking from the world’s best chefs in the comfort of their own kitchen.
“Sustainability is becoming increasingly important for 2022 and beyond. Green logistics is something that consumers care about, and businesses should too. Not only will green practices boost your customer loyalty, but they also are cost-effective.
Millennials, for instance, are more likely to purchase from companies with a sustainable and eco-friendly culture. One way to take advantage of this trend is to use minimal packaging with your products. It’s not only eco-friendly, but it will also reduce costs, creating a win-win. Businesses need to evaluate their supply chain carbon footprint in 2022 and make adjustments as needed.”
Patrick Samy
Patrick Samy is the CEO of Span Health, a web-based company that uses technology to improve users’ health performance. They take a more holistic approach to improving health by providing diet, sleep, and exercise recommendations backed by experts.
“It’s important to keep an eye on lower-cost proteins, particularly while food prices for chicken, beef and other animal products are skyrocketing. High-protein foods are particularly high in demand during the early part of the year. It’s the season in which Americans are more health-conscious and resisting the sweet or savory dishes they enjoyed during the holiday season.
During the pandemic, prices for eggs increased, and that has continued during the supply-chain crisis. The costs for labor, packaging and feed keep increasing. As a result, customers are looking for cage-free and local-market alternatives. If they do buy eggs, they are doing so in larger quantities. Bulk purchases are preferred by more and more consumers who think they’re getting more value by purchasing eggs 36 at a time rather than 12 at a time.”
Christina Russo
Christina Russo is the Creative Director of the Kitchen Community, one of the world’s most respected digital culinary hubs that attracts an audience of over two million visitors a month that is solely dedicated to food, health, cooking, and wellness.
“The escalating cost of beef is the most important food supply chain trend businesses need to be aware of in 2022. The pandemic ripped through meat production facilities, mainly because of the close-quarter working practices, and demand has now outstripped supply. Unfortunately, that’s led to increased costs to wholesalers and suppliers, which are going to have to be passed on to consumers, but in the short term, those costs are going to need to be met by the supermarkets and points of sale.
And, with the production facilities still trying to get back up to speed, the cost of beef probably won’t stabilize for the next twelve or months, so be prepared, because you will have a cow when you see the bills.”
Jete Nelke
Jete Nelke is the Head of Marketing at FoodDocs.
“AI and automation are becoming ever-growing factors across the entire food industry, and it will surely be of much wider use in 2022 and beyond in the sectors that haven’t yet been keen to use it, such as food processing. Automation has been widely used in the food industry for years now. The pandemic has forced many businesses to rethink their strategies for staffing and ensuring a healthy food supply. With the help of AI, automation has jumped in, saving a lot of hours on ensuring the quality, safety, and monitoring of the food supply.
At this current point, automation is no longer perceived as a luxury, but mandatory, and I believe it will make a huge leap forward in the years to come.”
Erin Mastopietro
Erin is the Co-Founder of Dope Dog.
“A notable trend in the food supply chain industry is the advancement of green logistics. With more and more companies shifting their packaging procedures to environmentally friendly alternatives, supply chain companies that offer cost-effective yet green friendly packaging have a competitive advantage.
Businesses need to look out for the supply chain companies that offer sustainable packaging, as it can help to promote brand goodwill and increase customer loyalty. Brands that invest in sustainable packaging grow 5.6x faster than those that don’t. Furthermore, businesses need to actively check for the carbon footprint of their packaging, which is often overlooked.
In addition to this, investing in the blockchain technology system can also help in surpassing many data discrepancies in supply chain management. It keeps the data and information secured and stored under a single hub. The encrypting and time stamp ledger method in blockchain helps to limit fraud and keeps information secure. Businesses need to implement blockchain technology gradually for their online payment facilities.”
Carlos Castelán
Carlos Castelán is the Managing Director of The Navio Group.
“Perhaps the most important food supply chain trend is inventory availability, or ‘instock rates.’ Retailers and CPG companies alike continue to be challenged across the supply chain to keep grocery shelves stocked while dealing with rising costs, labor shortages, and raw ingredient shortages, including packaging. For 2022, companies in the grocery space will continue to remain focused on improving their instock rates and ensuring less volatility when serving customers for the future.”
Nikita Makarov
Nikita is the CEO and co-founder of FooDoo, a machine learning-based Grab & Go solution.
“Here are some of the most important food supply chain trends to be aware of in 2022:
Automatization
More and more businesses will strive to automate all the possible processes in the supply chain and exclude human factors from the stages that could be automated. Moreover, retail companies are looking for new methods for distribution as well as for production.
Forecasting
Forecasting and integrating AI in the processes will help calculate volume and consumption more accurately. This trend will lead to the promotion and implementation of the conscious consumption concept and lead to supply cost reduction.
New types of foodstuff
Emerging businesses will aim to make food safer for the environment and less costly in the long run. Creating artificial meat could be an example of this trend.
VR/ARVR and AR help in marketing
These technologies allow for testing the product before purchasing, allowing consumers to make more conscious decisions and avoid negative experiences.
Strategic planning
Entrepreneurs should consider the future and assess changes in consumers’ values and behavior. More and more people think about ecology and refuse products that are unfriendly to the environment. That means businesses should have plans to adapt to a new reality. It also means you should not only improve your product but also make efforts to reduce costs to improve the affordability of high-quality products.”
Jonathan Ben Zvi
Jonathan Ben Zvi is the CEO of All Forward, a technology platform that allows freight forwarders to request and receive quotes from around the world in real time.
“The food supply chain is constantly evolving, and businesses need to be aware of the latest trends to stay ahead of the competition. In 2022, the most important food supply chain trend businesses need to be aware of is the increasing popularity of plant-based meat substitutes. Plant-based meat substitutes are becoming more and more popular as people become more interested in healthy eating and reducing their carbon footprints. Businesses that want to stay ahead of the curve should start developing plant-based meat substitutes of their own.
More and more people are making the switch to plant-based meat because it is a healthier and more sustainable option. Plant-based meats also have lower cholesterol and fat levels than meat from animals. They also require much less water and land to produce, making them a more environmentally friendly choice. With so many health and environmental benefits, it’s no wonder plant-based meats are becoming increasingly in demand.”
Max Strycker
Max Strycker is the Director of Supply Chain Partnerships at RASI.
”While most experts agree that food inflation should lessen as 2022 goes on, we will continue to face some headwinds as labor costs remain high and the labor shortage/supply chain problems persist. In light of this, most manufacturers are planning to or have passed cost increases on to their customers, and distributors are still seeing order fill rates as low as 80%.
In order to minimize the impact, it remains important for our clients to utilize manufacturer contracts whenever possible and to work closely with their distributors to operate as efficiently as possible. Some strategies might include scheduling deliveries on certain days of the week where the distributor has more capacity, getting their orders in earlier, and running less tightly on inventory—especially within dry goods (non-perishable products).”
Admir Salcinovic
Admir Salcinovic is the Co-founder/Marketing Manager of PriceListo. He is an experienced product leader who specializes in driving vision and roadmaps for businesses.
“Transportation has been one of the biggest stress points in the food supply chain in recent years. The problem has been fueled by the explosive growth of eCommerce, requiring fast shipment of goods throughout the country. The average age of an over-the-road trucker is between 45-60 years. But the average annual turnover rate of major U.S. trucking companies is a stunning 90%.
Unless some changes are made in the trucking industry, the food industry is likely to experience continuing transportation issues. Fortunately, some of these shortfalls can be addressed through accurate demand forecasting and proactive planning. Companies that remain flexible and leverage real-time data will get access to the most reliable labor and service.
In 2022, the food supply chain industry will see increased adoption of automation solutions that will equip growers, processors, and warehouses with the technology they need to keep up with changing consumer demand and various supply chain challenges. Given the increasing complexity of consumer demands and issues facing the supply chain, adding intelligent productivity solutions can help companies be more productive with fewer workers.
Automation solutions like wearables, robotic processors, and automated stock pickers can allow humans and machines to work together to reduce material handling costs, eliminate errors, increase safety, and create a more efficient overall food supply chain.”
Jeff Mains
Jeff Mains is a 5x Entrepreneur and CEO of Champion Leadership Group LLC.
“Here are the two most crucial food supply chain trends that companies need to be aware of in 2022:
- Meal kits are becoming more popular.
Subscription meal kits are becoming more popular, linked to the food delivery trend. During the COVID-19 epidemic, the market for meals in a box saw a resurgence as millions of Americans were forced to remain at home, leaving them with extra time on their hands to cook meals. Given the success of other food delivery services, customers may have gained greater trust in the meal kit subscription model.
To meet the diverse needs of its consumers, meal kit providers will provide a wider choice of alternatives, including anything from classic comfort foods to ethnically inspired fare and even meals for those following special diets like gluten-free, Paleo, or Keto.
- Supply chain disruption is expected to continue.
Following the substantial supply chain and distribution channel problems that started in spring 2020 and have continued to this day, there is still cause for worry. As a result of the continuing and prospective after-effects of COVID-19, meat production issues may persist. This is in addition to the restricted availability of some kinds of products.
However, even though the supply of these items is returning to normal, the availability of skilled labor remains limited. Restaurants and merchants, who are already under pressure, may find themselves in a difficult situation.”
Beth Schubert
Beth Schubert is a media specialist, the co-founder of Own The Grill, and a life-long culinary fanatic.
“The most important food supply chain trend businesses need to be aware of in 2022 is not necessarily a positive one. However, it’s critical that businesses keep this trend in mind. This trend is the issue surrounding driver shortages.
Driver shortages are being seen around the globe and are unlikely to ease up in the near future. As a result of this, businesses will want to act and plan accordingly to assume that they may experience supply issues over the course of 2022.”
Mary King
Mary is a Retail and Restaurant Expert for Fit Small Business and is well-versed in supply chain issues.
“Throughout the rest of 2022, food businesses need to be aware of global and environmental impacts on the supply chain. In the U.S., major corn and wheat producing states from Iowa to Kansas are experiencing mild to severe drought conditions.
The war in Ukraine is also limiting supplies available from two of the top five wheat producers—Russia and Ukraine. These grains are more than raw ingredients themselves; corn and wheat are cornerstones of the meat and poultry supply chain. As grain becomes less available and more expensive, the price and availability of everything from beef to eggs will be impacted.
To avoid shortages, food businesses should look for meat, dairy, and grain suppliers with shorter supply chains wherever possible. Basically, try to shop local on a wholesale scale.”
Bill Glaser
Bill Glaser has been a serial entrepreneur since the age of five, when he used to go door-to-door selling vegetable seeds and greeting cards. Bill worked as a financial advisor with storied investment banks before founding a financial firm. His latest booming venture, Outstanding Foods, celebrates plant-based foods and how addictively delicious they can be.
“Transportation delays and labor shortages for drivers will likely continue. eCommerce is here to stay, and with it, the challenges it brings to the supply chain. The food and beverage industry is entering this lucrative market, but each business must prepare for transportation complications by staying informed. Keep a handle on changing consumer demands, maintain communication with your suppliers, and integrate your supply chain systems. By being informed and flexible, you can deliver quality food products to all consumers in 2022.”
Patryk Szubiczuk
Patryk is the Head of Fulfillment at Linker Cloud. He is an expert with 14 years of experience in the logistics sector, understanding all stages and challenges of fulfillment. He is well-versed in the eCommerce world, creator of operational solutions.
“If I were to pick one trend that will flourish in 2022, it would be (food) parcel lockers and their use in the context of last-mile delivery. As shown by the 2020 IPC Cross-Border eCommerce Shopper Survey (33,000 surveyed online shoppers from over 40 countries), nearly 40% of respondents order at this type of pickup point—and this is a definite upward trend.
Of course, the popularity of typical parcel lockers themselves is one thing; food parcel lockers are still somewhat of a technological novelty.
However, it must be admitted that the COVID-19 pandemic has influenced their development. Food parcel lockers have become a kind of bill of goods for closed catering (but also for buying food that requires special storage). Food parcel lockers have allowed the foodservice industry to survive by allowing restaurants not to fire employees and to continue operating despite pandemic restrictions. Some restaurants have even had permanently turned into ghost kitchens—places where food is prepared, but not served on the premises.
Interestingly, one of the leading providers of parcel solutions has decided to bet on mobile parcel-freezers. Such freezers on wheels are being tested by the Polish InPost company in Warsaw, but they will surely be introduced to other cities soon. It allows ordering wholesale quantities of fresh products and delivering them directly to the restaurant, without the need to go to the store and wait in lines. To be successful, all you need is the right partner who knows the fulfillment process well.”
Mike Liebson
Mike Liebson is VP at New Horizon, a supply chain software startup serving food manufacturers, distributors, and retailers. Previously, he held roles at Oracle, TraceLink, and E2open, focusing on the consumer goods supply chain. Earlier in his career, he was a consultant with BCG. He holds an MBA from INSEAD and an SB from MIT.
“The most important food supply chain trend businesses need to be aware of in 2022 is increased uncertainty about supply disruptions. Prior to the February 24, 2022 Russian invasion of Ukraine, the food supply chain was already reeling from the pandemic. Labor shortages resulting from the Omicron surge were disrupting food production, transportation, and restaurant operations, resulting in shortages and levels of food inflation not seen in 40 years. Just as the pandemic was showing signs of subsiding (at least until the next variant), the war in Ukraine ratcheted up the level of food supply chain disruption and uncertainty.
Together, Russia and Ukraine account for a huge share of global exports of commodities such as wheat, corn, barley, soy, and sunflower oil. Russian exports have now been disrupted by sanctions, while Ukraine exports have been disrupted by combat. This has caused immediate shortages and price hikes for a range of agricultural commodities used for food production.
The rise in the price of oil is increasing food transportation costs, causing further inflation. In addition, Russia and Belarus (also facing sanctions) are leading producers of fertilizer and feedstocks (such as potash, urea, and natural gas) for fertilizer production in other countries. The resulting fertilizer shortages and price hikes will affect the longer-term production and pricing of food grown in the U.S. and all over the world.
Shortages and price hikes of certain commodities and fertilizer are key trends that food manufacturers, distributors, retailers, and restaurant operators need to be aware of and prepare for during the remainder of 2022. But from a supply chain management perspective, the overarching trend is increased uncertainty about supply disruptions.
Organizations involved in the food supply chain can adjust their plans to take into account shortages and price increases (by, for instance, substituting ingredients, changing recipes, finding new suppliers, etc.) if they have visibility to predict such challenges.
The real challenge is dealing with the uncertainty of not knowing what products and raw materials will be affected, for how long, and to what extent. To answer these questions, you have to answer questions such as how long will the war last, will Russia evade sanctions and resume exports, will there be new COVID-19 outbreaks, and how long will the U.S. economy continue expanding. The answers to these questions are unknowable. So to deal with the resulting uncertainty, food companies are using a number of supply chain strategies, such as alternate-sourcing, nearshoring (bringing production closer to home or in-house), commodity price hedging, and increasing investment in the ability to monitor supply and demand more precisely and to quickly respond to changing market conditions.”
Clearly, there are myriad factors impacting the food supply chain, from the COVID-19 pandemic to labor/driver shortages, global conflict, and more. But there’s a typically a solution for each challenge as well, and it’s often reliant on the right tools and technology that empower a business to quickly pivot, and stay ahead of the challenges.
As a leading consultant and implementer of supply chain management solutions, Argano can help your business identify, adopt, and scale the right technology platforms to reach and surpass your goals. Contact us today to schedule a discovery session.
