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How Supply Chain Disruptions Affect Food Businesses

October 14, 2020

Supply chain disruptions often cause food businesses to lose sales and customers. The losses happen because products and supplies didn’t arrive on time or not enough quantities were delivered to match customer demand in the first place.

How supply chain disruptions affect food businesses

It’s especially the case during these pandemic and business restrictions. Movement, including transport and labour, has been better regulated and restricted to minimise viral transmissions. This has affected the entire food supply chain including during harvesting, processing, handling, packaging, delivering and distribution. The disruptions even get worse because of the complex interdependence among a variety of businesses, industries and locations.

When it comes to sourcing from a location, the further away the supply or product, the more chances of something wrong to happen. We can see that in our exports, imports and even domestic transactions where deliveries take time and distance. For example, if the Victoria area suddenly closed its borders, several products might not be able to go in or come out from the region. The impact can be much greater when products come from overseas such as China and Southeast Asia. What happens in those countries may still affect our food supplies and pricing.

Because of the potential disruptions and further risks, businesses were compelled to adapt. One way they have done that is by prioritising locally sourced products and supplies. This way they can become less dependent on far sources and locations. This also helps in maintaining stability on the amount of products they have (better predictability).

For food businesses involved in food harvesting, handling, processing, storage, packaging and transport, it’s crucial to maintain some stability and predictability so both the business and the customers will somehow feel that everything’s still fine and bright. If the shelves are always empty or the business always runs out of supplies, surely it will be a source of worry and stress to customers.

Here at Cooltrans we do our part by making sure refrigerated deliveries arrive on time and are stored in safe temperatures. Our fleet is well maintained to ensure reliable operation and prevent delays. And with our real-time tracking and backup vehicle preparation, the food and supplies are sure to come on time. This will help in maintaining some predictability and stability in the supply chain and especially in the businesses we service.