Current Situation
By now you have likely heard about the ongoing supply chain issues this country is facing. Over the last three months here at our co-op, we have slowly seen a decrease in fill rates from our two main distributors, UNFI and Tony’s Fine Foods. Our "parent” co-op National Coop Grocers gave an update last week to all western corridor General Managers, and the news isn’t good. We will continue to see a decrease in fill rate and could even see canceled deliveries and long-term delays in service. There currently is no estimate on when the supply chain will get back up to speed. Thru our two main distributors we are seeing a fill rate of approximately 75%. This means that we will not receive 25% of what we ordered. You will notice empty spots on shelves and an increase in estimated ETA’s on your favorite brands.
Main Challenges
There are three main challenges that our supply chain is facing.
1. Labor Shortages – This remains the top issue that is reported by the suppliers and distributors. The industry is continuing to be challenged by recruiting and maintaining warehouse employees and port of entry employees. The increase in COVID-19 cases further limits the availability of these workers.
2. Transportation – Truck, rail and port of entry resources remain extremely constrained, resulting in staff shortages in our most critical industry. The lack of truck drivers and port employees has caused major back ups in the supply chain, as seen at our ports with shipping containers sitting out of port for many weeks past their deadline for delivery.
3. Raw Material Shortages – These shortages are extensive. The extensive port delays are causing shortages of raw materials like sheet steel, aluminum, plastic, and many critical packaging components.
Your Co-ops Response
Your co-op is assessing this situation daily. We continue to work very closely with National Coop Grocers, who advocate for us. We will strive to stay as transparent about this issue as we can.
Our plans to address this issue include the following:
1. Investigate alternative distribution companies to work with.
2. Increase our back stock or “safety stock” wherever possible to ensure that we keep adequate supply of product.
3. Investigate different brands or types of products to bring in that will replace items we cannot currently get.
We take pride in being able to offer the products you want and need. We will do the very best we can during this time to ensure the shelves are as stocked as they can be. You may not find the exact brand you want. We understand your frustration and want to ensure that our buying staff continue to work very hard every day looking for alternatives. We appreciate your patience and understanding during this difficult time. If you have any questions or concerns, please reach out to us!
MWilde@featherriver.coop