Baking & Snack - February 2023 - 99
OPERATIONS
Supply Chain
Supply chain constraints prevent many bakeries from seeking new
opportunities or fully satisfying the strong demand for their products.
by Dan Malovany
D
During his 36 years of working in the food industry,
Clay Mullins has never seen anything like today when it
comes to supply chain challenges.
" Historically, the food business hasn't had significant
supply chain problems except that transportation capacity
would be tight at times, " said Mr. Mullins, vice
president of supply chain and logistics, Crown Bakeries,
Brentwood, Tenn.
Within the past three years, delays and disruptions
driven by COVID-19 have been popping up everywhere.
Solving these issues has been like a game of whack-amole,
except with serious consequences.
" With many of them, you don't know where they are
coming from until they have occurred, " Mr. Mullins
explained.
Jim Warren, BEMA chairman and vice president,
Exact Mixing, Reading Bakery Systems, said the baking
industry is struggling with a lack of raw materials
to make products, components for equipment and the
workforce needed to meet customer demands.
" Historically, individual shortages have occurred,
but this is the first time we are seeing shortages of these
three key manufacturing components at the same time, "
he said. " The result, as we all know too well, is creating
chaos in the industry. "
The situation has also affected what retailers offer in
terms of product variety.
" Consumers can still purchase goods but don't have
the extensive choices they did three years ago, " Mr.
Warren said. " There are even bare spots on grocery
store shelves that were coveted in retail locations not too
long ago. "
Like many companies, Crown Bakeries has lined
up additional suppliers where possible, but even that
doesn't guarantee enough supply when a systemwide
shortage of an ingredient occurs from import issues or
not enough people to produce it.
" If you order an ingredient and the supplier's labor
doesn't show up, that has a whipsaw impact throughout
the supply chain because the supplier loses the sale, I lose
Labor shortages
often cause a
chain reaction of
disruptions that
result in lost sales
for ingredient
suppliers, bakeries
and retailers.
Sosland Publishing Co.
www.bakingbusiness.com / February 2023 Baking & Snack 99
http://www.bakingbusiness.com
Baking & Snack - February 2023
Table of Contents for the Digital Edition of Baking & Snack - February 2023
Baking & Snack - February 2023 - Intro
Baking & Snack - February 2023 - 1
Baking & Snack - February 2023 - FC1
Baking & Snack - February 2023 - FC2
Baking & Snack - February 2023 - 2
Baking & Snack - February 2023 - 3
Baking & Snack - February 2023 - 4
Baking & Snack - February 2023 - 5
Baking & Snack - February 2023 - 6
Baking & Snack - February 2023 - 7
Baking & Snack - February 2023 - 8
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