During SFA’s In the Know webinar, Supply Chain on Fire: Keeping Your Cool in this Hot Moment, Jeff Grogg of JPG Resources, Betsy Gillette of Synergy Sales Consulting Group, Janis Abbingsole of King Arthur Baking Company, and Ryan Williams of Rise Brewing Company discussed supply chain management during these turbulent times and how they are navigating these challenges in order to be successful.
The webinar came at a time when more than 100 ships are still waiting off the coast of Los Angeles, there are 40-day waits to unload, shortages of semitruck drivers, material shortages impacting basic items like oats, and more, we don’t know when things will improve, said JPG Resources’ Grogg. The panel of sales, finance, and supply chain leaders provided the following strategies to reduce risk and find ways to win during this time of uncertainty.
1. Transparent communication is key. Retailers have been patient throughout service disruptions, but they are tired, noted Synergy Sales Consulting Group’s Gillette. More than ever, sales teams need to partner with operations teams to navigate and stop hiding supply chain issues. This can be a competitive advantage if you have a good supply, she said.
King Arthur Baking Company’s Abbingsole underscored the importance of being forthright noting, “the truth is the easy way out.” If relationships across the supply chain are in check and healthy, we will be better off, she said.
2. Be proactive. Williams of Rise Brewing Company explained that by seeing through the “looking glass” and not just addressing orders as they come in, empty shelves can be avoided. He advised looking at who needs inventory immediately when prioritizing needs. Since this information can be difficult to assess, Rise subscribes to Clear View from UNFI and similar tools from KeHe. He said that although they can be pricy, they are worth the investment.
Abbingsole shared proactive steps taken by King Arthur Baking Company to keep a rich supply and have more flexibility when it comes to moving goods. Before the holidays, it spent a lot of energy moving product by rail and other modes of transportation to save money before surges. The company uses a constellation of mills broker trucks, broker company trucks, and its own trucks. She mentioned that in looking forward, diversifying single source ingredients will be beneficial.
3. Focus on what you have command and control over. Abbingsole said that with so many headwinds, people can get to a place of despondency. By looking at what you have command and control over daily, you can focus on what will improve your situation. She reiterated that one thing we always have command and control over is telling the truth about our current situation.
4. Don’t wait to increase prices. Gillette revealed that seven out of 10 brands that she works with increased prices within the last couple of months, with one brand doing so three times. She noted that distributors and retailers are a little more forgiving now than they have ever been and that by being truthful, she’s been able to get new price increases through some of the most difficult distributors and retailers. She advised increasing prices now rather than waiting six months.
5. Simplicity is a method of innovation right now. When you focus on simplifying your supply chain, it can lead you to choosing the right new products, said Williams. He explained that Rise Brewing Company’s focus on innovation is taking the same products that are selling well and figuring out how to make them with less ingredients so that they are more affordable. Simplifying formulation and packaging is more important to him than a line extension during these times, he said.
If you are interested in learning more about this topic, register here to view the recording.
Related: Food Retailers Diversify Supply to Remain In-Stock; Experts Provide Tips to Understanding the Supply Chain Continuum.