Supply Chain Disruptions
Takeaways from our recent IndieChat
The COVID period taught us a lot about supply chain disruptions and how product outages can impact our relationships with our customers, distributors, and suppliers. And, recent developments in international relations and a domestic strike reminded us that it doesn’t take a pandemic to cause interruptions in product delivery. Even though the dock workers’ strike – that prompted our “emergency” IndieChat, only lasted a few days, it created a months-long backlog on products and product components needed by pet product suppliers and manufacturers. Add that the settlement is up for review mid-January 2025, and the possibility of another supply-chain disruption lingers.
When, during a meeting of IndiePet’s Operational Efficiency committee (comprising both retailers and manufacturers) the topic of the strike and its consequences came up, the committee determined that an IndieChat to bring more members into the conversation might be in order. We scheduled and invited all members to this Chat to figure out how best to prepare for potential delivery delays now and in the future.
Following are the takeaways from this IndieChat that include best practices from the categories of membership represented at the Chat.
International Manufacturers:
Know what your distributors have on hand
If possible, operate multiple manufacturing locations
Carry the same product packaged in multiple sizes to provide options and if popular size packaging becomes temporarily unavailable
Solicit feedback from retailers to assist in forecasting demand
If possible, maintain multiple distribution options
Distributors:
Hold at least 3 weeks of inventory
If brand supply interruptions occur, utilize private label as alternative
When disruptions happen, allocate on-hand supply to all retailer customers
Solicit retailer feedback
Focus on forecasting tools
Retailers:
If possible, keep 3 weeks of inventory
If multiple store operator, ration and distribute to stores
Forecast through P.O.S. software
Communicate trends to distributors and brands
What will IndiePet do?
Consider creating a Supply Chain committee to stay on top of potential issues
Work on creating a “Supply Chain Portal” to provide members with easy access to available information
Report regularly through emails and newsletter on issues that can cause disruptions
Provide insights reports and best practices to members
Advocate for independent pet retailers
IndiePet will also consider other proactive ways to assist our members with future supply chain issues. We will continue to listen to our members and work through our committees to bring members the latest information that will help mitigate potential business interrptions.
