Leaders in the food and beverage industry are stepping up their efforts to mitigate supply chain risks following two years of delays and disruptions to business operations, according to a report from New York-based advisory firm Mazars.
Supply chain issues rose to the top of industry leaders’ concerns in the firm’s Annual Food & Beverage Industry Outlook for the United States, with 54% of survey respondents saying their top industry concerns in 2022 are shipping costs, container costs, and/or other unexpected fees at ports. Other concerns include rising commodity costs (39%), the need for supply chain improvements (39%), delays due to shipping congestion (38%), and truck/driver availability (33%).
To combat the unpredictability and better manage risks and costs, 41% of respondents said they are making strategic investments in supply chain diversification, and 45% reported plans to increase their number of suppliers this year. Survey respondents also said they plan to source more domestically and seek alternative products (30%, respectively) to address supply chain snags and bottlenecks.
When asked how they will prioritize supply chain improvements, respondents said they will focus on cost of goods (22%), followed by product delivery time (18%), knowledge and information sharing (16%), and food safety (14%).
“The food and beverage industry continues to show resilience in the face of many obstacles,” according to Kristen Walters, Mazars Food & Beverage practice leader. “Business leaders are overcoming supply chain issues and inflation woes by making innovative decisions that are resulting in new products and purchasing channels for consumers.”
Mazars polled 60 food and beverage industry executives for the annual report.