The Friday Report: August 7th, 2020

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Food and Beverage Businesses Report that Innovative Partnerships Are Holding Industry Together

The ability to be flexible and to notice potential opportunities has helped to forge new relationships and business models in the food industry.  Companies that had operated wine bars, produce stands, breweries and other businesses have had to learn to pivot to survive.

Seizing opportunity, some restaurants began selling their meat, seafood and produce to the general public at a time when grocery delivery services were swamped with orders.  Other food businesses partnered together, selling consumer packages of food products that were difficult to come by, all through home delivery services.  Pantry boxes filled with fresh produce, meats and even toilet paper proved to be a big hit, especially when delivered to the homes of consumers.

Creativity also hit the restaurant supply chain, inspiring new business models.  Some foodservice businesses started launching websites for direct-to-consumer sales, repackaging goods for consumer sales in a different pricing structure.  By contacting homeowners’ associations in the regional area and setting up delivery service options for online orders, these businesses were able to help out consumers and keep their doors open.

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Fashion Leaders Report Impact of COVID Outbreak

A survey of leaders representing 25 fashion retailers, wholesalers and importers revealed that all reported temporarily postponing or cancelling apparel sourcing orders in 2020 due to COVID-19.  U.S. protectionist trade policies was revealed to be one of the foremost business concerns for those surveyed, for the third consecutive year.

  • 60% of retailers surveyed postponed or cancelled less than one third of total orders
  • Almost 50% of retailers reported that the order postponements and cancellations reach beyond Q2 of 2020
  • 40% anticipate that the postponement and cancellations may remain in effect until Q4 or beyond

Manufacturers Answered the Call to Shift Production Toward PPE During Outbreak

Across the American manufacturing industry, factories have stepped up to fill the void in the production of personal protective equipment (PPE) to protect essential workers against COVID-19.  U.S. manufacturers have cited a variety of reasons for cooperating, launching new production lines or repurposing existing lines.  For some, the decision was tied to a belief in necessity and civic duty.  Other factories desired the gain of the “essential” status the production would provide, helping them to keep workers employed.  Many manufacturers viewed this as an opportunity to get a piece of “insatiable demand” for products that are in critical need.

Personal protective equipment includes ventilators, surgical gown, gloves, N95 respirators, facial shields and masks.

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