The Retail Supply Chain Has Inverted – Formerly Efficient Operations Now Least Effective – Small Markets Best Supplied… | The Last Refuge

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.

via The Retail Supply Chain Has Inverted – Formerly Efficient Operations Now Least Effective – Small Markets Best Supplied… | The Last Refuge