The just-in-time supply chain for grocery store replenishment depends on transportation of food items from around the globe. Shipping is primarily used to move food items. COVID-19 restrictions have slowed down the movement of goods dramatically.
Most grocery stores carry limited days of inventory and depend on transportation systems all working on time. The pandemic has exposed a major flaw in just-in-time systems: no extra inventory in the system.
Video Spotlight:
- COVID-19 Is Changing The Grocery Business (Apr 15, 2020, PYMNTS Media)
- Coronavirus could cause global food shortages by April as export curbs worsen supply chain problems (Mar 31, 2020, South China Morning Post)
This post is based on the CNN article, Can’t fine what you want in the grocery store? Here’s why, by Hanna Ziady, April 2, 2020, and the YouTube videos in the Spotlight. Image source: Tada Images/Shutterstock
Discussion Questions:
1. Discuss the limitations of the just-in-time supply chains.
Guidance: The major limitation discussed in the article is a disruption with transportation systems. Without reliable transportation, just-in-time is not possible. Students may also note that having little safety stock at distribution centers closer to retailers is another concern. Continue reading
