Re-Engagement With Supply Chain and Updating Market Knowledge Is The Key To Success
Many chefs and owners talked to their suppliers as frequently as their families prior to COVID-19 so it’s only natural that picking up the phone may feel a little stranger after an extended furlough period.
It is important to bring yourself up to speed with changes from the supplier end; understand any limitations they may now have in terms of delivery capability or product range and also understand the potential cost challenges or benefits there may be across specific product groups.
Supplier Challenges & Recommendations
Challenge
Some suppliers have reduced ranges or limited the pack sizes they carry in an attempt to better manage stock levels.
Certain suppliers have also updated delivery routes with some re-purposing business to supply ‘at home’ services to general public.
Recommendation
Discuss all of these elements with suppliers prior to finalising menus and placing initial orders.
Many suppliers have real time stock systems and with multiple operators returning at the same time you should think about giving suppliers extra notice on first orders to plan availability. This will ensure you secure any limited stock items.
Market Challenges & Recommendations
One important thing to bare in mind is that the supply and demand dynamic has evolved significantly post COVID-19 outbreak, there are a few key recommendations we would make to any business planning to re-open:
Food Market – Challenges
Manufacturers & Producers with retail facing operations have seen their supermarket volumes increase significantly while others who rely more heavily on hospitality have had to close their doors in some cases.
Within many categories there are pockets of product which are being either over or under-sold.
Suppliers still have excess stock of product with varying degree of reduced shelf life.
Food Market – Recommendations
Ask suppliers for their specific recommendations on where greater value exists, I have illustrated a few good examples based on current market position:
Dairy - milk prices fractionally up but cream / butter supply is greater then demand which has pushed these prices down
Red meat - supermarket volumes on mince, dice have risen sharply but rib, sirloin and fillet are available at better prices due to lack of hospitality volumes.
Think about 6 month shelf life products which suppliers may have purchased pre-COVID with July / August dates – all of perfectly sound quality and available at far better rates.
PPE – Challenge
Prices have continued to increase and this trend is set to continue, particularly on gloves – the market has become so short that supply is no longer coming by sea but instead by road (from EU) or by airfreight (Asia) which has significant impact on costs
PPE – Recommendation
Order early and ensure you have stock in place via your suppliers, todays price will not be more expensive than tomorrows
This advice was supplied by The Full Range
