Disruptions to Tea Supply Chain

Disruptions to the global tea supply chain, from the movement restrictions of the pandemic to weather issues, are causing serious supply problems with tea.

These disruptions, coupled with an increase in tea consumption at home for its health benefits, have resulted in a 50% surge in wholesale prices of tea, a 1.7% cost increase in packaged tea bags, and a 9.6% price increase in liquid tea.

Video Spotlight: 

“The Great American Logistics Machine” Catches the Coronavirus

Logistics – the seemingly simple process of moving goods from Point A to Point B – has been an American strength and continually improving science.  Witness the ability of Amazon to deliver in as little as 2 hours in some markets.

The public has taken this capability for granted.

But now, in the Coronavirus era, we are experiencing rationing of meat, shortages of basic goods (paper products) and necessary ones (masks, drugs).  Even for products and ideas not invented here, starting with […]

Possible Meat Shortages Due to Plant Closures

Three of the United State’s largest pork processing plants, namely Tyson Foods, Smithfield, and JBS, were closed because employees their tested positive for the coronavirus.

The plant closures reduce the production of meat by 25% and may result in meat shortages in grocery stores.  In addition, farmers are impacted as they cannot sell their livestock to be processed, leading to a serious food waste issue that exacerbates disruptions to the meat supply chain.

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Despite Empty Shelves, Supply Chain Is Still Strong

The pandemic has spotlighted several issues in the food supply chain.

The hallmark of a good supply chain is to plan on disruptions and build in redundancies in the network.  The current spike in demand could lead grocery stores to increase capacity that may not be needed when the pandemic ends.  Without careful management and communication, it’s a potential example of the bullwhip effect.

In addition, the health of farm workers upstream in the supply chain is a major concern, the longer […]

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