Survey says big problems still common in food supply chain

Chicago-based transportation visibility company FourKites and Food Shippers of America have released the results of a survey of more than 115 industry leaders about logistics challenges in the food and beverage supply chain.

Results, according to a news release, reveal that the three biggest challenges facing the food shipping industry are:

• Labor and talent management (49%)
• Transportation capacity issues (39%) 
• Supply and demand planning disruptions (35%)

Shippers indicated that COVID-19’s impact on labor (56%), over-the-road capacity constraints (44%), port delays and congestion (30%) and changes in consumer behavior or buying patterns (22%) have all disrupted operations and created or worsened challenges, the release said.

Since the pandemic began, more than 30% of respondents reported they have seen a drop in customer loyalty, while 55% have seen a sales decline or miss due to product shortages, according to the release. 

About three of four who responded to the survey said they are “concerned” or “very concerned” that rising inflation and geopolitical uncertainty will negatively impact sales during the fourth quarter of 2022, according to the release.

According to recent FourKites data, the 28-day average food and beverage shipping volume is down 1% year-over-year, compared to a nearly 10% decline in shipments for all other industries, the release said. The 28-day average percentage of food and beverage deliveries delayed has remained stable throughout the year, hovering around 27.5%.  

“Food and beverage shippers have contended with a lot lately, as the industry has been more affected by product and material shortages than most, and for goods that are in demand year-round,” Glenn Koepke, FourKites general manager of network collaboration, said in the release. “Those who have navigated supply chain disruptions the most successfully are companies that have leaned heavily on technology and collaboration to identify and address issues before they snowball into major events.”

The food supply chain is investing in technology and automation, the survey said.

"If we've learned anything over the past couple of years, it's that disruption is going to be continuous, and we need to have visibility throughout our supply chain," Melissa Wreath, senior director of account management at ArrowStream, a foodservice supply chain technology, said in the release. "FourKites allows us to have a real-time understanding of where things are throughout the entirety of the network. Without it, you're continuously playing catch-up."

A whitepaper about the survey is available from the FSA website.