The recent rail blockades and now the coronavirus outbreak are having an impact in our grocery stores. When consumers see media reports of empty Costco shelves, they behave differently. Unpredictable consumers are a big challenge for a supply chain network that is built on history and a commitment to delivering sales with the lowest possible inventory on hand.

Here is my advice to manage your customer relationships and do your part to ensure we make the most of a challenging situation.

1. Understand your importance to customers and consumers

If you have an item consumers will be looking for during this outbreak then you need to be front and center so your customer knows what is happening with service level and lead times. On the flip side, if your item is not critical right now, then you might have to take a back seat in the short term.

2. Challenge your supply chain

You have a responsibility to deliver service level (cases delivered divided by cases ordered). You do not always control your own destiny but you have the relationship with the retailer so do your due diligence. Challenge your packaging, ingredients and logistics suppliers to ensure you will be able to meet your obligations. 

3. Be proactive in your business

Provide information and tips to your employees to have the best chance of a healthy work force. Remind your employees how important their role is in the food industry.

4. Communicate with your customers

This is not the time to step back and disappear. Let them know you are on top of the issue and if there will be any impacts on your business. Your communication should be developed after you go through my first three suggestions. If your product is on the critical list, they will be looking for your updates. If you are not on the critical list, it is still important to provide an update. A lot of packaging comes from Asia and lead times are long. Be realistic, not optimistic! Communicate with purpose.

5. Respect there will be changes with your customers in the short term

Resources at retailers are limited and they will be shifting some people from one function to another to execute during this outbreak. Get clarity regarding these changes.

6. Visit stores

I took 15 minutes to walk a store March 6 to see what is happening. Overall I would say the shelf conditions were good and there were only a few holes. Certainly the hand sanitizer section was wiped out and I am sure they are trying to replenish, as is every other retailer. When you visit stores you will have the best indication of how your customer is doing.

7. Take a deep breath

We will see volatility and more pronounced reactions as the impact of this outbreak grows across North America. Let’s hope this outbreak will be controlled in the near future and the food world will return to ‘normal.’

Source:  SKUfood.com March 6, 2020 newsletter