Russell decided the stores would simply start making the cookies themselves and, as a result, cookie sales went up 38 percent. This made them realize that they were not getting cookies delivered for the bakery because the manufacturer cut them from the lineup. Russell's team actively walks the stores and looks at analytics to find any holes in product assortment. Russell is also working with smaller companies and other backup distributors and manufacturers as needed to keep items in stock, especially foodservice items needed to make staple items at its stores. "This alleviates a lot of stress for myself and the stores." "We have a backup for every item, so we should never run out of something unless something bizarre happens," Russell said. If they can't get pizza clamshell boxes with their logo, they will take plain white. It also helps to have multiple distributors, according to Sloboda.Īt Reid Stores, Russell is taking a similar approach, creating backup lists with its distributors. I had to create a backup list for deli, packaging and other categories, so if one thing is out of stock, we go down the backup list to see what we can get."įor example, Wesco gets turkey from Gordon's Foodservice and now has different types of turkey listed as backups so that the retailer can at least get something delivered. "Every week, there is a new challenge and a new supply chain issue. "It's the ingredient companies sometimes and not the manufacturers," he said.
In some cases, manufacturers don't have the labor to produce products and at other times, they are not getting the ingredients they need from those that supply to them directly, according to Wesco's Sloboda.
Out-of-stocks are affecting so many categories that it's hard to predict what items will be available and when. Manufacturers, distributors and retailers are all feeling the pressure to get items on store shelves. "This week, it might be bagged candy, and last month it was coffee." Finding Workarounds "The categories being affected move around month to month and week to week," he said. Most retailers agree that consumer demand has leveled off and is not the core issue when it comes to the supply chain struggles, although products being out of stock are forcing consumers to switch to products that might not be their first choice, said Jonathan Polonsky, chairman and CEO of Plaid Pantry, a Beaverton, Ore.-based chain of 106 stores. While some manufacturers with whom I've spoken to are working on robotic options for repetitive processes, these projects are 12 to 18 months in the making at best."Īdditionally, prior to the pandemic, the natural aging of the population created an imbalance of older Americans compared to younger working generations and this, coupled with the pandemic, produced more labor issues, Segal pointed out. "This has affected every level of the work chain, including product production, manufacturing, warehouse and delivery. "Supply chain issues began a year ago as the extended PPP enabled workers to stay home," Segal explained. Both manufacturers and distributors are dealing with labor issues, and that also includes the suppliers that deliver ingredients to the manufacturers. It seems labor issues at every level are at the heart of today's supply chain issues, according to Kay Segal, founding partner at Business Accelerator Team, based in Phoenix. But once people got the green light to go back to work, labor issues and the high demand started affecting the supply." "It wasn't as bad during COVID because a lot of places that needed the same items were not open. "It's half my job to source and buy now," he noted. While his title is fresh research and development lead at the company, which operates 55 stores, he said his role morphed into "emergency purchasing" when items couldn't be stocked. I knew they supplied Wegmans and we are selling 3 million slices per year, so we needed them."Īt Wesco Inc., headquartered in Muskegon, Mich., Dan Sloboda also expanded his job responsibilities during and after the height of the pandemic. "I couldn't get pizza clamshell boxes from my distributor, and I found them at a company in Albany, N.Y., that was sitting on them. "I'm the foodservice director, but over the pandemic, I essentially became a buyer," Jeff Russell, foodservice director at Lockport, N.Y.-based Reid Stores, operating 87 Crosby's locations, told Convenience Store News. Whether it's paper cups and boxes for foodservice items, candy staples or fresh food ingredients like turkey and cheese, c-store retailers are having to get creative to keep their shelves stocked and their customers happy. NATIONAL REPORT - Supply chain issues are hitting every industry in the United States, and convenience store retailers are no exception.
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