UNFI's Raiche on Navigating Distribution in the COVID-19 Environment

The COVID-19 pandemic has caused incredible difficulties for the food supply chain as consumer habits shift and change. John Raiche, UNFI’s executive vice president of supplier services provided actionable insights for suppliers and explained how UNFI is working with suppliers to keep the supply chain moving, during the latest installment of SFA’s Ask the Expert webinar series.

Key Actions for Suppliers

• Determine what items (and how many) you can consistently provide to the supply chain. Many suppliers have reduced the breadth and depth of their product lines. One major CPG brand even reduced its offerings from 100 different products to four, said Raiche.
• Communication is critical. Communicate with your distributor about your abilities, your plan, and any pain points. Don’t be afraid to ask them to do things differently to support your ability to get your product into the supply chain.
• Re-evaluate if this is the time to introduce new products. Retailers don’t have a lot of time to take in and set up new items on the shelf, so be discerning about what products you introduce.

How UNFI is Working with Suppliers

As a distributor, UNFI is working hard to accommodate any supplier issues, said Raiche. It has launched a supplier blog, and dedicated a specific email address that is staffed nearly 24 hours a day to handle any problems that arise.

UNFI is also working with suppliers to pare down SKUs and a plan to reintroduce them when the time is right. Even though many retailers are still interested in promotions, UNFI is adjusting or canceling promotions for suppliers. As far as delivery, Raiche said UNFI is giving suppliers a lot of flexibility; even if suppliers can only give a 12-hour notice of cancellation, UNFI can work to fill that delivery slot with another company.

Raiche also cautioned companies against raising prices if they can avoid it. Many states have implemented price gouging laws, and for some, any price increase on a product counts as price gouging. Raiche recommended that companies be familiar with price gouging laws in each state.

View the full recording now!

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