Supply flex vex: food shortages drive up inflation, supply chain to blame

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Fresh produce shortages in recent weeks are now not just impacting consumers plates, but also their pockets. Empty shelves and rising costs highlight the volatile consequences of supply chain challenges on an already fragile national economy.

For some time, retailers have decreased in-store inventory and instead relied on daily warehouse replenishment. As a result, even the slightest disruption is having an immediate impact on product availability and ergo on inflation. Unless sellers, makers and movers change the way they do business, this will become the norm.

Forecasting future supply levels via an intelligent supply chain platform is critical to ensure the reliable delivery of goods. With these capabilities, organisations can quickly adapt, expand and diversify their network of suppliers if an issue occurs in a specific region, enabling them to balance inventory levels in real time. This level of agility is essential to fulfil orders and prevent passing on the extra expense to cash-strapped consumers amid a cost-of-living crisis.