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Running Out: Can Fast Food Favorites Beat Supply Shortages?

Running Out: Can Fast Food Favorites Beat Supply Shortages?

10/17/2021 11:37:00 AM

Running Out: Can Fast Food Favorites Beat Supply Shortages ?

McDonald's, Taco Bell and Starbucks among chains facing issues, as other consumer products disappear from shelves.

Consumers the world over are dealing with the unavailability of staple items on store shelves, including grocery stores.“It is difficult to get the shipment of raw goods from other parts of the world because of COVID and shortages of shipping containers and delays in the shipping industry,” said Andrea Sordi, academic director for the executive MBA in global supply chain management at the University of Tennessee-Knoxville.

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“Adding on to that, the world had a huge increase in their consumption. With lockdowns, people were not going to restaurants and eating out. There has been a huge increase in demand of ready-to-eat and pickup food,” she said.In addition to foodstuffs, fast food companies and small businesses are also running out of paper bags, takeout containers and straws. Sales of paper used to make takeout bags were up 12 percent in 2020, according to the American Forest and Paper Association, largely due to the closing of in-store dining during the height of the pandemic and the related rise in takeout orders.

Grocery stores are struggling to stock staple food items, including soup and canned or frozen vegetables. This is due to a spike in demand for products with a long shelf life in addition to supply chain shortages.U.S. President Joe Biden speaks to members of the media after arriving on Marine One on the South headtopics.com

... [+]Lawn of the White House in Washington, D.C., U.S., on Friday, Oct. 15, 2021. He is pushing to fix supply chain problems by Christmas. Photographer: Oliver Contreras/Sipa/Bloomberg© 2021 Bloomberg Finance LPwebsite that “extensive supply chain is constantly evolving to meet the needs of our customers and communities,” and in June offered its blueprint for business for other retailers to use.

“While changes occur rapidly, positioning yourself to partner with third parties as needed can limit your risk and ensure minimal impact to your supply chain,” Kroger said, with a list of tips to consider.Challenges surrounding supply chain management, which is tied to logistics, increased significantly with the worldwide shutdowns ordered during the COVID-19 pandemic. Shortages of food and other items continue as the supply chain seeks to recover from disruptions exacerbated not only by the pandemic, but also by wildfires in the U.S., floods in Europe and China, and drought in South America.

A Gallup poll in August 2021 found that 60 percent of U.S. adults say they have been unable to get a product they wanted in the past two months because of shortages, and 57 percent have experienced significant delays in receiving a product they ordered. Seven in 10 Americans overall have had at least one of these issues, while 46 percent have had both.

“The same poll finds that 83 percent of adults have experienced ‘significant price increases’ in the past two months, another byproduct of the COVID-19-related economic disruptions to manufacturing, shipping and labor supply.“As would be expected, given the systemic nature of today's supply chain problems, similar percentages of Americans in all regions of the U.S. report having each of the three challenges tested in the survey,” the Gallup organization said. headtopics.com

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Even supermarkets are having supply chain issues. (Photo by Stephen Zenner/SOPA Images/LightRocket... [+]SOPA Images/LightRocket via Getty ImagesHow companies meet the challengesIn the U.K., retailers and their suppliers are working to minimize disruption, said Andrew Opie, director of food and sustainability at the British Retail Consortium. “Retailers are increasing pay rates, offering bonuses and introducing new driver training schemes, as well as directly supporting their suppliers in the movement of goods.”

U.S.-based Progresso Soup has reduced its product offerings from 90 products to 50 in an effort to keep up with demand on its more popular items.“Coupled with supply realities, any demand spikes or drop-offs will create opportunities and challenges for consumer packaged goods," a 

2020 report by consulting firm McKinsey & Company says.“Even as companies work nonstop to stabilize their business, we believe it is critical to allocate significant time to planning for the post-crisis phase. It can be as simple as executives spending a few hours every week thinking ahead, or as committed as assigning a specific team responsibility for creating RGM [revenue growth management] plans for 2021 and beyond,” the report says. “To succeed at RGM in the next normal, consumer packaged goods companies need to focus on consumers, shoppers and customers, and define scenarios for each.”

Some companies are simply asking their customers to be patient. Taco Bell, for example, recently posted this message on its website: “Sorry we can’t feed your current crave.”Some big fast food chains, including McDonald's and Jersey Mike's Subs, have been forced to increase prices as supplies dwindle and inflation creeps up. Consumer prices for food away from home jumped 4.7 percent last year and prices for food at home increased 3 percent, according to the Bureau of Labor Statistics' Consumer Price Index. headtopics.com

Lesson from the topSupply chain is as much, if not more, dependent on technology (warehouse management, tracking inventory and cargo, identifying bottlenecks, and more) as on transportation.Technology research firm Gartner in May announced its annual list of “

.”“The top performers offer valuable lessons in supply chain excellence,” Gartner said.“After a year in which supply chains had to demonstrate unprecedented levels of agility and flexibility to rise to the challenges of the pandemic and other macroeconomic factors, we found that today’s differentiated supply chains go beyond just efficient logistics; they deliver on their organization’s purpose by: understanding customer value, investing in technology that drives resilience, agility and innovation, and promoting innovation and celebrating successes against ESG [environmental, social and governance] targets."

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For the second year in a row, Cisco Systems topped the list.Driver shortages in the UK, US and Europe persist, making supply chain problems worse.StatistaSome supply chain disruptions will take longer to fixEven after pandemic-related squeezes on the supply chain ease, there will still be problems that will take longer to address.

Read more: Forbes »

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Americans lose faith in Biden amid supply shortages despite drastic drop in COVID casesA new poll found 85 percent of Americans are concerned that supply chain problems will lead to shortages of basic items. What Americans are you referring to? I’m an American haven’t lose faith in POTUS ! Thank You 🙏 President Biden for all you do. Everyone blames !!! Blah blah!!!! Yada yada. If you watch Sunday Morning last week, it was spelled out in why. We need to stop being a nation of throw away products. For one thing.

7 Tips for Overcoming Supply Shortages This Holiday SeasonRead about 7 tips from The Toy Insider around how parents can overcome supply shortages and slow shipping ahead of the 2021 holiday season.

Supply chain woes are hitting school cafeterias, leaving administrators scrambling to put meals togetherThe school cafeteria is the latest victim of the supply chain slowdown, leaving nutrition administrators scrambling to get proper meals on the table for students as they return to the classroom. Maybe ask other countries how they do it or shop local Can’t speak for all states but $ isn’t the issue, nor is taste since rollback of M Obama’s disastrous policy. LAUSD offers three meals a day plus weekends kits for students to take home. MSM just noticing what has been going on since August. As a vendor, I know firsthand making sure you kid has breakfast and lunch Isn't that part what they call being a good parent.

America has an unprecedented free lunch experiment. But schools can't find food.The latest victim of the supply chain slowdown is the school cafeteria, leaving nutrition administrators scrambling to get proper meals on the table for students as they return to the classroom. Terry McAuliffe Needs Our Support-He is running 4 Governor in the Great State of VA. He has Our best interests heart. He Will Continue Democracy in VA & we Need All the non-trump Republicans Too-He Is Fighting 4 US ALL. WashCoVADems StaffordVADems CampbellVaDems SalemVADems

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