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Subject category: Marketing
Published by: Harvard Business Publishing
Originally published in: 2020
Version: 6 April 2020

Abstract

This note, written in late March 2020 and mainly US focused, looks at the unfolding impact of the coronavirus pandemic on food retailers and their suppliers. It allows student to consider the challenges facing food retail executives as they navigate urgent supply chain challenges amid rapidly changing information and circumstances. It touches on developments in various segments of the supply chain, including farms, manufacturers, the trucking industry, warehouse operators, and store operations, as well as home delivery. The note is 'set' as the outbreak is accelerating in the US, where the first 'hot spots' include cities such as Seattle and New York City. Officials in many states have ordered or advised residents to stay home, exempting those employed in industries designated 'essential', including food. The food industry is contending with a massive surge in demand for staple goods, as consumers worry about product shortages, seek to minimize store visits, and anticipate long stretches of time at home. Stock-outs and rationing in some categories in stores are widespread. Demand for online food shopping and delivery has skyrocketed well beyond the current capacity of retailers in many markets. As they scramble to respond, players up and down the food supply chain are changing how they source, make, move, and stock products. While US officials have asserted that the food system remains reliable, anecdotal news is emerging of problems facing individual players, industry segments, and geographies. With the crisis expected to continue for weeks or months, all are bracing for even greater challenges.
Location:
Other setting(s):
2020

About

Abstract

This note, written in late March 2020 and mainly US focused, looks at the unfolding impact of the coronavirus pandemic on food retailers and their suppliers. It allows student to consider the challenges facing food retail executives as they navigate urgent supply chain challenges amid rapidly changing information and circumstances. It touches on developments in various segments of the supply chain, including farms, manufacturers, the trucking industry, warehouse operators, and store operations, as well as home delivery. The note is 'set' as the outbreak is accelerating in the US, where the first 'hot spots' include cities such as Seattle and New York City. Officials in many states have ordered or advised residents to stay home, exempting those employed in industries designated 'essential', including food. The food industry is contending with a massive surge in demand for staple goods, as consumers worry about product shortages, seek to minimize store visits, and anticipate long stretches of time at home. Stock-outs and rationing in some categories in stores are widespread. Demand for online food shopping and delivery has skyrocketed well beyond the current capacity of retailers in many markets. As they scramble to respond, players up and down the food supply chain are changing how they source, make, move, and stock products. While US officials have asserted that the food system remains reliable, anecdotal news is emerging of problems facing individual players, industry segments, and geographies. With the crisis expected to continue for weeks or months, all are bracing for even greater challenges.

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Location:
Other setting(s):
2020

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