Supply chain constraints are not a new challenge in the food industry. Even before the COVID-19 pandemic created additional hardships, the food industry has always had to deal with difficulties in the supply chain. Food is a global market, and even the smallest food processor brings in food ingredients, packaging, and equipment from around the world. The food industry is not immune to environmental disasters or political unrest in the global environment. Since the food supply chain is very complex with multiple stakeholders, processors, brokers, and transportation involved, it is susceptible to turbulence and instability.
In lean manufacturing or Six Sigma or operational excellence—whatever nomenclature you choose to use—there is an inventory concept known as "just in time." Inventory costs money. It must be stored and moved around, and it requires infrastructure. The more it is touched, the more motion and transport are wasted, and the more opportunities arise for damage and loss. Food companies have traditionally worked with their suppliers and their sales forecasting teams to create processes enabling products and ingredients to be ordered for arrival just as they were needed on the manufacturing floor. This translates into less waste and more efficiency. However, this methodology only works when a good understanding of sales and forecasting is available, and when lead times from suppliers can be trusted.