Supermarket Perimeter - December 2021 - 11

C
ompounding issues such as labor shortages, increased
product demand, and COVID-related shutdowns have
caused one of the most substantial supply chain challenges
in modern history.
As supermarket retailers and suppliers alike look to the future, the
industry must work together to increase transparency, and deploy
technology that can minimize supply chain risks, noted Boyede Sobitan,
co-founder and CEO of OjaExpress, a Chicago-based international
foods delivery service helping smaller retailers address the current
supply chain landscape.
" Suppliers need to be very transparent on what availability they have, "
Sobitan said. " Grocers need to be very transparent on opportunities that
exist for them to sell more to their customers by looking at a supplier's
real value. What do I mean by that? Look at the movement of their
product, ask what suppliers are anticipating. There needs to be more
collaboration in the industry. "
While the industry is in the throes of the deepest supply chain
challenges it has seen in a long while, being able to anticipate what's to
come and implement industry-wide standards and changes will go a
long way in preventing problems from worsening.
Looking at the short-term: holiday impact
As supply chain challenges continue to impact the grocery industry
during one of the busiest seasons of the year, Chicago-based IRI
collected data focused on the availability of a basket of 25 holidayrelated
grocery categories.
Key holiday-related findings included:
* Five holiday-related categories have elevated and worsened out-ofstock
rates. Product availability of whipped toppings, liquid gravy,
frozen pie/pastry shells, refrigerated pies and bakery pies categories
was between 5 and 11% lower than the same time last year, and
between 1% and 9% lower than the recent two-month average.
* Promotional and pricing activity reflects shortages. As a result
of lower supply, retailers are running between 1 and 9% fewer
promotions in those five categories compared to last year. On
average, prices in these five categories have risen about 3.6% over this
time last year.
* As the holidays approach, retailers will have less incentive to promote
this year given the high demand and low in-stock rates. As a result
of availability, lesser anticipated promotional levels and continuing
inflation, shoppers may need to substitute items across key holiday
categories.
* There are early indications of supply chain risk to other holidayrelated
categories. As the holidays approach and demand begins to
spike, data foreshadows availability risk for additional holiday-related
items, including cranberries and stuffing.
Rob Fox, director of Greenwood Village, Colo.-based CoBank's
Knowledge Exchange pointed out that while there might not be much
retailers can do to prevent shortages from occurring, they can have
plans to help their shoppers improvise.
" The retail spending for Halloween items was up 40% from preCOVID
levels, " Fox said. " That told me that customers are very into the
Supplier Spotlight: St Pierre
With global supply chain issues
seeing retailers battle to stock
shelves nationwide, St Pierre
published its latest order
fulfilment figures in October
to demonstrate the benefits of
working with the brand.
The brand revealed the level
of investment in its stock in
country, allowing for a 12-week
supply of its products at any
one time. This stock-holding
has seen the leading brioche
brand assist retailers in recent
months, as some brands
haven't been able to meet
delivery commitments.
National fill rate averages have
been difficult to maintain for
many suppliers this year, but
new details from St Pierre
demonstrate an impressive
98% national fill rate average.
" We pride ourselves on our
supermarketperimeter.com
authentic French recipes, our
superior product delivering
for the consumer and being a
reliable partner supporting our
grocery retailers. Through our
unique model, we work hard
to ensure we deliver, " said Paul
Baker, founder of St Pierre.
DECEMBER 2021 - 11
ARTINUN - STOCK.ADOBE.COM, ST. PIERRE, OJA EXPRESS
Transparency is key
to mitigating supply
chain headaches,
said Boyede Sobitan
of OjaExpress.
http://www.supermarketperimeter.com
Supermarket Perimeter - December 2021

Table of Contents for the Digital Edition of Supermarket Perimeter - December 2021
