Weekly Update June 27th

3 No Cost Ways to Improve Your Supply Chain 🏭

Hey , 

This has been a heavy year. Friday's Supreme Court decision to reverse Row v. Wade is devastating. This on top of recent school shootings, an ongoing war in Ukraine, and countless other issues affecting our every day. I know it's taking a mental and emotional toll on me, and maybe you as well. It can sometimes feel hard to focus on your business when everything else feels like chaos. That's why today I want to focus on how to better control a chaotic part of your business - Supply-Chain.

PS. If you were forwarded this newsletter, please 

  3 No-Cost Ways to Improve Your Supply-Chain 

It seems that every brand I talk with is experiencing some sort of problem with either their in-bound shipments or out-bound deliveries. Today I want to talk through some ways of mitigating these disruptions.

Pre-pandemic we lived in a world of just-in-time delivery, where you could get almost anything within a reasonable delivery window. Then the pandemic completely disrupted global and local supply chains. Now that things are starting to normalize a bit, we're still working through great uncertainty.

The biggest issue is one shipment arrives right on time in two days, while another can be delayed by 4 weeks. It's very difficult to coordinate the on-time delivery of so many components. If you're feeling the pain, you're not alone. 

Here are a few tips to better take back control.

Localize Your Suppliers

Find ingredient and packaging suppliers close to your manufacturing facility to reduce shipping costs and time. When I sourced almonds for TeaSquares, we found this great wholesaler in Washington State that had an amazing product. Only thing was that our manufacturing facility was in Chicago. Shipping cost was almost the same as the product, and it took about 1.5 weeks (pre-covid) to arrive. 

So what did we do? Eventually, we found a regional nut wholesaler in Chicago and were able to get a great quality product at the same price, but without the additional shipping cost or time. 

Localizing your supply chain is a big way of eliminating shipping delays. Can't find someone in the same city? That's ok, expand your search to the nearest hub city.

What's the best way to find new suppliers? I'm a big fan of

. It's a B2B marketplace for wholesale ingredients.

Develop Redundant Suppliers

You should have 3 qualified suppliers for every ingredient in your product. That means having a contact person there, pricing, and all the Quality Assurance documents on hand. This may seem overboard, especially if you have 10 different ingredients in your product. But trust me, it comes in handy when your main supplier is suddenly out of stock and you need product fast. 

Ordering ingredients that are grown overseas? Find wholesalers who source from different countries. 

For packaging if you're printing overseas, have a domestic alternative, even if it's a higher price. That way you can produce short runs to fill in the gaps. 

Inventory management systems like

make it easy to track multiple suppliers per ingredient, including pricing, MOQs, and lead time. 

Simplify Recipes

The fewer ingredients in your product the better. At TeaSquares we had 18 differnet ingredients between each of our 3 flavors. This meant a lot of work ordering and tracking ingredients. In addition, we had 2 ingredients that were unique and we could only find 1 supplier each who could deliver them. That meant if the supplier was delayed, we had no other option. 

I highly recommend you revisit your recipes and look for ways to simplify your ingredient list and make sure you can find at least 3 suppliers for each ingredient (as mentioned above). Otherwise, your product is at the mercy of that one supplier.

What other supply chain tips do you have? Shoot me an email and let me know.

Jordan Buckner

Foodbevy

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Jordan

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