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■ Stronger supplier collaboration: Close relationships with suppliers improve transparency and help secure supply during crises.
■ Agile procurement strategies: Companies that embed flexibility in contracts( e. g., volume flexibility and dual sourcing) can pivot faster when disruptions occur.
■ Real-time data and AI for predictive analysis: Businesses that leverage predictive analytics can anticipate disruptions rather than react to them. This, however, requires an upfront investment that not all companies can afford.
How can companies effectively identify and integrate new suppliers into their operations to reduce risk? To strengthen supply chains, companies should:
■ Diversify their supply base: Avoid overreliance on a single supplier by building multiple sourcing options across regions.
■ For key categories, engage in a more collaborative approach with suppliers: once trust is there, move beyond transactional relationships by engaging in more collaborative initiatives including flexibility in contract, open book or joint risk management.
■ Conduct a comprehensive risk assessment: Before engaging with a new supplier, evaluate financial stability, geopolitical risks, and sustainability commitments.
■ Digital integration: Data is key. Ensure the right level of reporting and tracking is established with the supplier from the beginning so that data can be leveraged to optimize costs and supply chain operations.
What best practices have you seen for managing consumer expectations during supply disruptions? Companies that manage consumer trust well during food supply disruptions typically focus on:
■ First and foremost, transparency and proactive communication: Explaining shortages clearly and outlining steps taken to resolve them.
■ Reformulation and innovation: Substituting alternative ingredients without compromising product quality. This can be done over time to ensure consumers do not taste any difference.
■ Proposing alternatives in flavors or ingredients and pushing the right marketing and promotions to the alternative products that do not face supply shortage.
■ Customer engagement strategies: Offering alternative promotions, discounts, or loyalty rewards to retain consumer confidence.
Many companies are relocating production to mitigate climate risks. What factors should businesses consider when deciding whether to shift their supply base? As we know, things can change very quickly and it’ s difficult to forecast disruptions in the world of the supply chain. However, when relocating, a company can consider:
■ Climate vulnerability assessment and history: Mapping risks( e. g., droughts and floods) across current and potential sourcing locations.
■ Political stability of the country.
■ Regulatory landscape and trade policies: Considering tariffs, food safety laws, and sustainability regulations.
■ Infrastructure and logistics costs: Evaluating proximity to processing plants and major markets.
■ Workforce and skill availability: Ensuring that relocation doesn’ t impact operational efficiency due to labor shortages.
Regenerative agriculture is gaining traction as a sustainable solution. What are the biggest barriers to widespread adoption, and how
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