Supply Chain
ASK A BOARD MEMBER
How Are Supply Chain Issues Impacting the Way You Do Business?
I
n this issue, we’ve asked board members from the Northeast Dairy Foods Association and Northeast Dairy Suppliers Association to tackle a question that many in the dairy industry are dealing with right now. We hope to make this a regular column addressing “hot topics” in the industry.
THE QUESTION:
How do you see supply chain issues impacting the way you do business (either speaking broadly regarding the industry or more specifically regarding your sector of business)? What can be done to overcome these challenges in the short term? 18 • Northeast Dairy Foods Association, Inc.
“We’re seeing more open positions for logistics and supply chain managers, as I think employers have been forced to take a hard look at the critical nature of this part of their business. Those looking to hire logistics or supply chain managers really want to step it up and make sure to bring on someone with a specific set of skills in this area that will help their businesses run as smoothly as possible. The critical nature of supply chain management really came to the forefront during the pandemic when, for the first time in many years, people couldn’t immediately get some of the products or services they needed. We’re still feeling the effects of that, not only due to lack of product but lack of all the people who help get things to where they need to be. Everyone from CEOs to consumers are taking a closer look at how, when and where things come from as a direct result of experiencing shortages and delays. Mistakes in the supply chain can cause major cash flow problems to companies, and, in the case of the dairy industry, waste of perishable products. Some of
this is still out of our control as the country continues to recover, but, from what I’ve seen, employers are taking a harder look at this aspect of their business and trying to find the most qualified people that they can for the good of their companies and their customers.” —Ryan Osterhout, chief operating officer and managing partner, KCO Resources Management, LLC, and NDSA treasurer / board member. “Cheese was so popular during the pandemic, and cheese buyers want to continue to sell just as much again. We’re hoping that we see consumers continue to buy at that level, but it’s hard to read the demand right now. Retailers are really struggling with visibility to see what consumers are going to do for Q3, Q4 and into next year. But that’s a big question now that consumers are dealing with inflation, and, in the industry, we’re seeing challenges with high diesel costs, as well as packaging and manufacturing costs that are starting to creep up. On the international side of our business, we’re seeing challenges with shipping, delays
