Disruptions are more of a norm than an exception when doing business nowadays. Whether it’s a global pandemic, geopolitical instability, or rapid technological advancements, it's imperative for all businesses to remain agile and resilient. In recent years, these changes have hit the food supply chain hard, forcing Foodservice companies to rethink how they operate and find creative ways to adapt.
As someone in the distribution game, you know firsthand how important it is to stay ahead of these disruptions to keep things running smoothly. Let’s dive into some key lessons from recent supply chain shifts and explore strategies to deal with these disruptions.
1. Adaptability is Everything
If the recent disruptions have taught Foodservice businesses anything, it’s that adaptability is essential for survival. During the pandemic, for instance, many distributors and restaurants had to completely overhaul their operations overnight. From finding new markets to tap into to setting up curbside dining to accommodate social distancing rules, the ability to pivot became a lifeline.
Lesson learned: Communication is key to being adaptable.
How can you do this? Work closely with your existing partners to find creative solutions when disruptions arise. In times of crisis, your best partners are the ones you know and trust. But maintaining solid lines of communication with each other is critical to solving emerging problems. In times of crisis, clear and efficient communication becomes one of the most critical factors for keeping operations running smoothly.
Disruptions can create confusion and uncertainty, making it difficult for businesses to stay in sync with suppliers, customers, and internal teams. E-commerce platforms can play a vital role in addressing this challenge by providing a centralized solution for communication and coordination. Instead of relying on scattered emails or phone calls, all key players are connected in real-time, allowing for seamless, transparent updates. Whether it’s sudden product shortages, shipping delays, or updated demand forecasts, your e-commerce platform can ensure that everyone is on the same page, helping businesses respond faster and more effectively.
Additionally, e-commerce platforms simplify the entire supply chain process by keeping communication organized and accessible. Rather than juggling multiple conversations across different channels, businesses can manage orders, inventory, and supplier communications all in one place. This minimizes the risk of miscommunication and allows for faster problem-solving during a crisis. With everything documented and updated in real-time, users can make informed decisions without unnecessary delays, keeping operations moving even in the face of uncertainty.
2. Leverage Technology to Stay Ahead
Technological advancements have been both a disruptor and a savior in the supply chain world. Automation, AI, and real-time data analytics have revolutionized how businesses can manage their operations. The companies that embraced these technologies found they could respond to disruptions faster and more effectively.
During the pandemic, some distributors were able to track shipments in real time, reroute deliveries, or predict demand spikes using data analytics. Others struggled without these tools, trying to navigate the chaos blindly. This lack of analytics meant that millions of potatoes went to waste during the pandemic along with milk and eggs. All the while the supermarket shelves were empty. Demand had shifted, but the supply chain wasn’t prepared. Therefore, investing in tech early on, without waiting until you’re facing down the barrel of a major disruption is the smart way to go about it.
Lesson learned: Invest in the right technology to streamline operations and stay ahead of disruptions.
This is where a tech-driven approach really shines. Modern e-commerce platforms leverage real-time data and analytics to help you manage your inventory, forecast demand, and place orders with confidence. Need to know if a particular item is running low? You can use tools like inventory tracking and reorder alerts to do that. You can streamline your ordering process so you spend less time worrying about logistics and more time growing your business.
3. Understand Your Customers' Changing Needs
Disruptions don’t just affect the supply chain; they also change customer behavior. Over the course of the last few years there has been a massive shift in consumer preferences, from what they were buying to how they were buying it. During the pandemic, people were dining more at home than ever before. Restaurants that once relied heavily on dine-in customers had to pivot to delivery and takeout. Some of these trends even persisted post-pandemic due to high inflation. Distributors faced surges in demand for certain products while others stagnated.
Lesson learned: Keep your finger on the pulse of changing customer needs and be ready to adjust.
For distributors, this means staying flexible and responsive. If restaurants suddenly order more takeout containers, you need to be able to provide them. If certain ingredients are in high demand, you should have enough stock to meet your customers' needs.
4. Build Strong Relationships with Your Partners
One of the most valuable lessons from the recent supply chain disruptions is the importance of relationships. Foodservice businesses with strong relationships with their suppliers, distributors, and customers could weather the storm much more easily than those without those connections.
If you’ve cultivated strong partnerships, you’ll likely be the first to know about upcoming shortages or changes in pricing. Strong relationships also mean you’ll be better positioned to negotiate or secure priority shipments when times get tough.
Lesson learned: Invest in your business relationships to build a resilient network.
A centralized platform like your e-commerce platform can help create strong connections between distributors and restaurants. All parties can communicate and collaborate, which helps foster these relationships, making sure you’re well-positioned to handle any curveballs the industry throws at you.
5. Embrace Sustainability
Another key takeaway from recent supply chain shifts is the growing importance of sustainability in Foodservice. As consumers and businesses become more environmentally conscious, demand for sustainable products and practices has surged. This shift isn’t going anywhere—if anything, it’s gaining momentum. For the US Foodservice industry, where about 30% of food supply ends up as waste, it is a pretty glaring deficit that needs to be fixed.
Lesson learned: Sustainability should be at the core of your operations moving forward.
Distributors can get ahead of this trend by offering eco-friendly products, optimizing their supply chains for minimal waste, and finding ways to reduce their carbon footprints. Many manufacturers and service providers have recognized the growing demand for sustainable solutions and have curated a selection of environmentally friendly products—from biodegradable packaging to energy-efficient equipment—to help you meet this demand without sacrificing quality.
6. Plan for the Unexpected
If the past few years have taught us anything, it’s that we can’t predict every disruption. Pandemics, political unrest, and even natural disasters can hit without warning. The businesses that weather these storms best are those that have contingency plans in place.
Lesson learned: Expect the unexpected and have contingency plans ready to go.
Stockpile essential products, diversify your supplier base, and regularly review and update your risk management strategies.
Conclusion
Navigating industry disruptions is no easy feat, but by staying adaptable, leveraging technology, understanding your customers, and building strong relationships, you can turn challenges into opportunities. As a distributor, your role is critical in keeping the supply chain moving, and with the right tools and strategies you’ll be well-equipped to handle whatever the future holds.
So, what’s your next move? Whether you’re bracing for the next industry shake-up or just looking to streamline your operations, now’s the time to rethink your approach to supply chain management.
