If you’ve been paying attention for the last 17 months or so, you know we’re living through some pretty interesting times. On top of an ongoing pandemic, we’re experiencing one of the most difficult forecasting, pricing, costing and sourcing periods in modern business. An enduring shipping quagmire, massive labor shortages and global supply chain bottlenecks are affecting virtually every industry.
For those of us in food manufacturing, the price of essential ingredients and materials skyrocketing is an issue, but only if we’re first able to secure the volume required to keep production moving. Availability is hurdle number one. CAN we get this ingredient? This packaging item? This essential? If we’re able to fill the need, in time for production, the next question is one of cost. How much more will it cost than normal? Can we absorb this increase or will we be forced to raise price on our own customers? CAN we move price to cover the cost or are we locked into contracts?
We’re seeing major issues and shortages in the availability of packaging materials, sweeteners, starches, food colorings, fresh/frozen fruit and more. The ports continue to back up. The cost and availability of freight remains troublesome. Something’s gotta give… right?
We’re extremely fortunate to have had a strategic purchasing approach in place since long before we found ourselves in this current sticky situation. We’ve contracted ingredients where possible and aligned ourselves with incredible partners that allow us to pivot and respond real time to any and all challenges. I’m not saying we’re pandemic proof but we’ve set ourselves, and our customers, up for success in any climate.
If you’d like to learn more about how we do what we do, give us a call today 312-254-3539