In the recent past, we have seen there are many critical issues impacting the food supply chain globally. Unfortunately, solving these big issues and improving your food supply chain cannot be solved with the proverbial “silver bullet”. Solutions to these problems require a full end-to-end understanding of the complexity and impact of these forces and how a decision will impact the rest of your value chain.
With Adroit’s background and expertise, we have listed and analyzed the top 6 food supply chain concerns in today’s global market.
- Inflation
- Supply Scarcity
- Increased Demand
- Port Backlog
- Labor Shortage
- Longer Lead Times
How do you fix these issues? That is the million-dollar question that everyone is trying to quickly solve. However, as we said before, it is not a one solution answer. Below are case studies from two of our clients that show multiple issues at play and where Adroit stepped in.
Case Studies
Clients have come to us after moving to a new 3PL for a cost savings initiative only to find out the impacts made to their food supply chain are costing more. Sometimes, a cheaper 3PL will provide a lower service level agreement, which in most cases, can cause penalties from an OTIF perspective. Without understanding the full end-to-end impact of the decision that they thought would help save money, they ended up having a higher cost to deliver.
Another example of this is when a client came to us after switching to a new supplier. The supplier was vetted and had met the quality standards, pricing, and other critical requirements for the company. The client started the transition and began ordering from the new supplier. However, 15 days later, they started getting late fees and notifications. The payment terms with the new supplier were 15 days versus the 45 they were used to. This immediate switch pulled up a month’s worth of inventory they did not take into consideration when making their decision.
How can Adroit help?
The above are just two examples on how the crisis has impacted our clients. Throughout the struggle, lots of companies are finding ways to reduce costs and save money to avoid raising their prices. Still, most of the time, they are unsuccessful. It is possible they are a good decision with limited information, but not a great decision with all available information and impacts.
When Adroit works with our clients, we do not have a one-size-fits-all approach. We seek to understand, ask why, and build out a value chain map. This helps us come up with your unique equation to reducing cost throughout your entire food supply chain.
Are you looking into cost cutting initiatives or different methods to combat your food supply chain challenges? Make sure you understand the entire equation to make a solid business decision. If you need any help with your Food Supply Chain issues during this global crisis, Adroit is here for you.
