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The Retail Supply Chain Has Inverted Formerly Efficient Operations Now Least Effective Small Markets Best
The Conservative Treehouse ^ | 3-17-2020 | Sundance

Posted on 03/18/2020 1:13:57 PM PDT by Texas Fossil

CTH is spending time on this issue because the food distribution sector is the most important sector in all commerce. Having some familiarity with the supply chain might help people to understand the challenges; and possibly help you locate product.

The Inversion – Big chain markets; those who spent millions developing their own proprietary ‘just-in-time’ distribution networks and automated ordering systems; are currently the least equipped to deal with the level of demand.  Meanwhile smaller chains, or mom-and-pops, who rely on third-party brokered distribution are faster to respond.

Several factors have increased retail market demand for food products and non-perishables.  People stocking up, kids out of school, some panic shopping (example toilet paper) and now curfews/quarantines have people purchasing more for ‘meals prepared at home’.  Add in a level of closed restaurants and the demand on retail food markets is severely stressed.

In major urban areas the larger retailers are unable to keep up with demand.  This is creating an outward spread as people drive further and further distances to find their needs.  Those who travel a distance ultimately stock-up more; thus the outward spider web-cycle is created.  Based on ground reports Atlanta Georgia is a prime example.

Depending on the distance from the distribution center [SEE HERE] large regional chain outlets are now in a downward inventory spiral without escape.  That is: compared to their needs they are not getting near enough product.  So long as demand continues at a level beyond distribution capacity this will only get worse; especially for those stores more than 50 miles from their distribution hub.

Costco announced Wednesday that it will start to limit certain items members can purchase in response to the surge in business from the coronavirus, though specific items were not outlined.


(Excerpt) Read more at theconservativetreehouse.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: banking; corona; grocery; panic; supplychain
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This is why panic buying is taking place. The local small town markets are actually in better stock position than the huge chain operations.

What is driving it? The Trump haters in the media and the Desperate Dems hoping to defeat him in November.

Has it a name? ComDem Inanity!

1 posted on 03/18/2020 1:13:57 PM PDT by Texas Fossil
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To: Texas Fossil

Just in Time Supply Chain.

Yet another example of how MBAs are destroying the planet.


2 posted on 03/18/2020 1:16:01 PM PDT by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer)
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To: Texas Fossil

“PANDEMIC” = “DEM PANIC”


3 posted on 03/18/2020 1:25:12 PM PDT by decal (I'm not rude, I don't suffer fools is all.)
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To: Texas Fossil

Dempanic, not pandemic.

Hat tip to an unknown Freeper.


4 posted on 03/18/2020 1:27:14 PM PDT by moonhawk (I need a new tagline.)
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To: Texas Fossil

Thanks, you panicky mofos.


5 posted on 03/18/2020 1:28:18 PM PDT by Tolerance Sucks Rocks (Wu Flu! (when I feel heavy metal) Wu Flu! (when I'm pins and I'm needles) Wu Flu!)
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To: Buckeye McFrog

As far back as the 90s, I expected that this would go spectacularly wrong someday....


6 posted on 03/18/2020 1:29:31 PM PDT by M1903A1 ("We shed all that is good and virtuous for that which is shoddy and sleazy...and call it progress")
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To: Texas Fossil

Here’s the thing about efficiency:
It is VERY fragile. A completely efficient system is one long chain of potential single points of failure waiting to happen. If any one link breaks, you’re screwed.

Robust, fault-tolerant systems rely on redundancy to route around failures until they can be fixed.


7 posted on 03/18/2020 1:29:40 PM PDT by Little Ray (Freedom Before Security!)
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To: Texas Fossil

Very, very true.
The small towns 10 miles from here in either direction are in MUCH BETTER shape compared to large chain stores in a “medium” city that is 45 miles away.


8 posted on 03/18/2020 1:35:56 PM PDT by JCL3 (As Richard Feynman might have said, this is reality taking precedence over public relations.)
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To: Little Ray

Back in the 90’s I described it as a “Faberge Egg”. Incredibly beautiful, intricate but very delicate.


9 posted on 03/18/2020 1:36:07 PM PDT by Shark24
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To: decal
“PANDEMIC” = “DEM PANIC”

LOL! I'm putting that on a bumper sticker.


10 posted on 03/18/2020 1:43:16 PM PDT by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer)
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To: Buckeye McFrog
The “Just in Time” supply chain is outdated, and many major retailers don’t use that model anymore. Instead, they’ve moved to a “Just in Case” model where they have multiple sources for major products and materials. This came about as a result of major supply chain disruptions in the last 25 years — the rail system disruption following the UP-SP merger in the 1990s, major hurricanes in recent years, and the LA/Long Beach port strike of 2014. The goal is to have three or four different sources for each product, and adjust shipping plans and schedules accordingly as circumstances require it.

Our nation’s supply chains are more resilient and flexible than they've ever been.

What our supply chains CANNOT do, however, is respond effectively to chaotic and disruptive behavior by CUSTOMERS. An empty grocery store caused by a hurricane or earthquake is one thing. A grocery store that has been emptied by hordes of morons buying five or ten times more grocery items than they need is a whole different matter. Let’s not hold retailers responsible for the irresponsible behavior of morons.

11 posted on 03/18/2020 1:49:38 PM PDT by Alberta's Child ("Oh, but it's hard to live by the rules; I never could and still never do.")
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To: Alberta's Child

Excellent comment and points. Thank you.


12 posted on 03/18/2020 1:53:22 PM PDT by RatRipper
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To: Buckeye McFrog

If you’re looking to blame someone, go to the source: Us.
Those who worked hard, saved money, saved for retirement - and for some crazy reason expected a good return on our 401Ks and IRAs. Which, thanks to those MBAs, has been provided quarter after quarter, year after year.


13 posted on 03/18/2020 2:01:04 PM PDT by bigbob (Trust Trump. Trust the Plan.)
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To: Buckeye McFrog

It hasn’t worked for us for years, I just wish we still had a few independent businesses w/inventory. You have to wait 2 or 3 days for most everything. We order over the internet because the brick and mortars charge freight on orders too.

My son was very sick and working 12 hours a day, we just called and messaged for 2 weeks. He is finally feeling better and needed a few things but all the things he’s out of the stores are out of also. I was able to help but if not he’d be using napkins and paper towels and maybe old socks, lol.


14 posted on 03/18/2020 2:02:45 PM PDT by tiki
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To: Tolerance Sucks Rocks

They’re all panicked over the coronavirus, but they always seem to be in packed grocery stores where they can get coronavirus. You’d think they would stay home if they were that scared. Not making sense.


15 posted on 03/18/2020 2:03:28 PM PDT by virgil (The evil that men do lives after them)
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To: JCL3

Went to large grocery chain yesterday—no TP. Went to Dollar General a block away—plenty of toilet paper and Paper towels.


16 posted on 03/18/2020 2:08:12 PM PDT by lone star annie
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To: Shark24

Good description.
And “just in time” inventory systems are like a crystal goblet.


17 posted on 03/18/2020 2:10:20 PM PDT by Little Ray (Freedom Before Security!)
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To: Alberta's Child

The biggest morons are the government bureaucrats and politicians who have created this panic.

Every GD time one of these morons announces another forced closure or restriction people stampede back to the stores.


18 posted on 03/18/2020 2:15:41 PM PDT by Newtoidaho (All I ask of living is to have no chains on me.)
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To: Texas Fossil

I agree that the efficiencies have reduced the excess inventory throughout the system. But there is a lot of BS in this article. If the mom and pop stores have more excess it’s because they have minimums that they need to make, therefor more time between orders and more back stock.

Grocery stores in big cities carry little inventory mostly because they do not have the space. If they miss a day of deliveries they are out of stock on critical items. Now go the other way and shut the city down for a day and they will have no room to put their deliveries.

Distance from the distribution center has little bearing on instock situations.

People need to stop hoarding.


19 posted on 03/18/2020 2:25:12 PM PDT by dgbrown
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To: Texas Fossil

Foolishness. I live in Bentonville Arkansas and we were out of a few things for about 24 hours.

Are we at that very center of supplies? No. We are at the very center of logistic and supply chain innovation.


20 posted on 03/18/2020 2:43:17 PM PDT by Celerity
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