March/April 2022 - 8

OPERATIONS
SUPPLY CHAIN DISRUPTIONS
While the grab-and-go channel and
operator businesses such as Subway,
McDonald's and Yum! Brands, all
rebounded pretty quickly, the company
still saw major shifts in demand.
" If you saw dropoff in foodservice
and an increase at retail, you might
see that impact on revenue where it
balances the two, " he added. " But in
terms of pounds consumed - so what
we have grown out in the field - there's
a huge difference. You don't move as
many pounds of product in retail as
you would in foodservice. "
The result was that Taylor Farms
was left unable to harvest some of
the product grown in fields. The
company works with growers on a
contract basis, providing them with
a regional forecast of what to grow.
While needs are forecasted for all three
lines of business, planting is done in
aggregate, which ensures adequate
supply over all three lines without
negatively impacting growers.
When disruptions hit, Batti said
Taylor Farms worked closely with
8 MARCH/APR I L 2 02 2
farmers to resolve contractual issues.
" We've been in business since 1995
and many of our growers have been
with us since day one, so it's a long-time
partnership, " he said. " It wasn't their
fault that this happened. "
In a recent interview, Rachel
Molatore, sales representative, Taylor
Fresh Foods, expanded on supply chain
constraints that impacted other areas
of their business, including packaging
and ingredients. While there was some
easing from December to January, she
said, the supply chain is not completely
alleviated yet.
" Components that we never used to
consider at risk of shortage have been
difficult to keep in supply, " she said.
" It is surprising how one component,
like cornstarch, can shut down carton
production, or a lack of canola oil
can completely stop salad dressing
manufacturing. "
In some cases, Molatore said supplier
partners bent over backwards to keep
up with demand. " At one point, we
had a supplier fly glue from Ecuador
to make sure we did not run out of
cartons, " she said. " We value our
suppliers, treat them with respect and
appreciate all the hard work they do,
especially during these trying times. "
Despite recent challenges, Taylor
Farms has been able to manage fairly
well. Molatore attributes some of that
success to their supplier partners who
were able to keep up with demand
even under strenuous conditions.
However, the company is now planning
for longer lead times when ordering
and forecasting for packaging, salad
dressing, protein components and
equipment. Most manufacturers are
still trying to catch up on orders.
Longer lead times help ensure demand
is met.
" There has been a myriad of
shortages in the supply chain and our
team has been successful at staying
in supply, " Molatore concluded. " Our
supplier partners have been extremely
fundamental in the success of our
business and have viewed us as a
strategic, long-term partner.
March/April 2022

Table of Contents for the Digital Edition of March/April 2022
