The supply chain crisis that began with the pandemic and deteriorated with geo-political and macroeconomic events hit food production harder than most sectors. And looking back, it offered a stark reminder for food and beverage brands about the importance of ingredient agility. The ability to quickly find alternate ingredient sources and have confidence in the suppliers providing them, especially during moments of crisis, is (and remains) an economic imperative. Today’s food and beverage brands took those lessons to heart and updated their supply chains to future-proof operations.
Alternate suppliers on standby
At the pandemic’s peak, more than four in five organizations experienced at least one significant supply chain disruption, with half experiencing three or more. In addition, natural disasters and political unrest led to highly publicized shortages of key ingredients, and the trickle-down effect on both CPGs and consumers was unprecedented. Production delays, product shortages, and higher supermarket prices signaled a turning point. According to the “2022 State of Supply Chain Disruption” report, almost 90% of manufacturers surveyed agreed that the rise in ingredient prices significantly influenced their business strategies.
Access the full article from Food Industry Executive to see what other lessons today’s brands have learned and how they’re using them to future-proof their operations.