How Can Businesses Keep the US Food Supply Chain Moving While Reducing the Impact of COVID-19? | Experts at SpendEdge Explain

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the ways to keep the US food supply chain moving while reducing the impact of COVID-19.

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Due to global quarantine, the food supply chain in the US has been upended, increasing pressures on the systems, retailers, distributors and companies in the food industry. Initiatives such as labor shortages, national and local border closures are at the risk of impacting the food supply chain. Like China, governments must prioritize the movement of agriculture inputs along supply chains to keep pace with the demand. Our experts highlight the key areas to help companies improve the food supply chain management.

At SpendEdge, we help companies in the food industry to reduce costs, procure effective services, and manage volatility. Improving visibility across the supply chain, marketing, and logistics are envisaged to be the key areas of focus in the current scenario.

Key Areas to Focus on the Food Supply Chain

Tackle labor shortages

Every year a huge number of migrants cross U.S.–Mexico border on H2A visas. But the sustained restrictions due to COVID-19 outbreak could substantially reduce the number of migrants. This could create a major labor gap during the prime planting and harvest season. To minimize the impact of COVID-19 and improve food supply chain management, companies must ensure that labors shift quickly from industries that have been idled to fill the gaps.

Want to understand how you can address issues in the food supply chain? Request free platform access to gain insights into the US food industry.

Ensure continuity

While ensuring the continuity of the food supply chain, retailers and distributors must take a proactive approach to prevent the transmission of the virus. They must focus on the key areas and employ more labor than required to complete specific tasks rather than emphasizing on productivity. Their actions should include strict social distancing, breaking worker teams into discrete cells, introducing alternate shifts, and many more. To know how you can ensure continuity amid COVID-19 outbreak, get in touch with our experts now!

Address downward pressure on commodity prices

Low commodity prices are expected to continue in the coming time as well as growers are already strapped for cash. They may choose not to plant in the absence of any financial support. The situation may become grave and cause large-scale disruption to restaurants and other food-service operations because of the quarantine period. Companies must support farmers and those involved in the food supply chain to weather the current crisis by providing unemployment benefits or temporary alternative work opportunities.

Cross border logistics

The limited movement of agricultural inputs and food across different borders is becoming a prime concern for many companies. Most truckers do not want to drive into Italy due to the fear of the pandemic, impacting the movement of necessary goods. Governments are already putting in place protectionist policies to secure their food supplies. It becomes imperative for governments to keep the national, regional and local borders open to food and farm supplies to reduce the impact of COVID-19.

To analyze the impact of COVID-19 on the US food supply chain and steps to mitigate them, reach out to our analysts now!

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Anirban Choudhury
Marketing Manager
US: +1 630 984 7340
UK: +44 148 459 9299