The Unprecedented Demand On Supermarket Supply Chains

Posted 18 May 2020

As the coronavirus pandemic has swept across the globe, supermarkets worldwide are experiencing an unprecedented demand on stock. Statista reported that the grocery stores Lidl, Ocado, Iceland, and Aldi all experienced double-digit increases in sales, compared with the same period last year.

Ahead of the lockdown, shoppers descended upon supermarkets to stockpile food and other essentials. According to the Financial Times, shoppers spent an extra £1.9bn during this period at the end of March. As the UK enters its eighth week of lockdown, the intense demand on supermarkets shows no signs of slowing down.

Imaginably, an efficient supply chain is absolutely crucial at this time. Without adequate preparation and response, supermarkets may find themselves struggling to manage their inventories.

How can supermarkets prepare supply chains in response to COVID 19?

1 . Alleviate supply stock

To prepare your supply chain, seek to alleviate supply stock by working with suppliers to design a business continuity roadmap. During these challenging times, detailed planning is critical. Supermarkets should anticipate that stock demand is likely to be high for the foreseeable future.

2 . Diversify 

Businesses should seek to source suppliers across different regions, to achieve diversification of the supply chain. Doing so will help to protect your business from stock shortages. Many supermarkets are also setting limits on the quantity of products that can be purchased per person. Changes like this are useful to reduce shortages and ensure that customers shop responsibly.

3. Reduce product ranges

When supply is limited, supermarkets should respond by putting inventory reserves in place and prioritising certain products. Supermarkets across the UK have been reducing their product ranges, to increase efficiency. For example, Morrisons have cut their bakery line from seventeen different products to just seven items. The rationale is that it saves time to produce less variety within the same product, while still producing enough to meet demand.

4. Delivery changes

Online delivery demand has surged during the coronavirus pandemic, and supermarkets must make supply chain changes to respond. For many supermarkets, it is currently unrealistic to provide next-day delivery slots, many have increased their delivery times by days or even one week. Some supermarkets are choosing to prioritise vulnerable or elderly customers for online slots, which is both responsible and useful to cope with demand. 

How can Distribution Maintenance help? 

To respond to the increased demand in stock, you’re going to need reliable roll cages (and plenty of them)! As the UK’s top supplier of reconditioned roll cages, Distribution Maintenance guarantee perfectly safe and clean working roll cages which we have refurbished to provide you with top quality products. We also supply many types of brand new roll cages along with rack guard protectors, tote boxes, thermotainers, and stillages. 

Distribution Maintenance offers volume discounts and competitive rates. We can have your orders ready for delivery or collection within 24 hours, depending on peak periods. At Distribution Maintenance, we also provide roll cage repair services and roll cage rental. With 36 years of expertise behind us, we're confident that we can source you the best products out there.

 

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“When we are buying equipment at ACQSYS we look for reliability, flexibility and value for money. That’s exactly what we get from Distribution Maintenance and we don’t feel the need to look anywhere else. ”

Bill Howie, Chief Executive. ACQSYS Supply Chain Solutions Ltd

Suppliers to a wide range of industries

Our clients from a wide range of industry sectors have been relying on us since 1982 to deliver a dependable repair service and to supply refurbished roll cages. We understand the challenges of distribution in your sector and the importance of keeping your transit equipment wheels rolling. 

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Healthcare providers

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