Article contributed by Mike Berman, COO, Day & Nite/All Service
Over one third of all US imports enter the country on ships at the ports of Long Beach and Los Angeles, California. Even industries anticipating a sluggish first few 2021 months are rapidly rebuilding depleted inventories, where imports are exceeding even prior record volumes.
California is one of the world’s Covid-19 hot spots, surging past 3 million cases with no end in sight, reducing the size of an available workforce. This sordid combination creates even greater pressure on already decimated global supply chains, best captured by Pacific Merchant Association President John McLaurin’s recent public statement, echoing consensus projections the (supply chain) contagion will steadily worsen through at least early spring 2021.
Dozens of cargo ships stacked up in the oceans—with many more behind them only adding to already mounting delays—is only one of the escalating supply chain problems. From port of entry, needed raw materials, components, finished goods and parts must then be transported to stateside factories or distribution centers. The nation’s continued trucker shortage only compounds these problems. Continued US Postal Service backlogs aren’t only forcing more envelopes and parcels to already capacity constrained private carriers, these worsening conditions are putting even local businesses at serious risk.
Massive global supply chain headwinds are so strong that despite estimates pandemic influenced in-store 4th quarter 2020 sales would exceed prior year by 7.5%, Big Lots earnings will come in flat. With foodservice already facing so many priority front-and-center challenges, it would be understandable if the industry was not fully plugged in to these less obvious matters potentially doing as much harm for any hospitality rebound in 2021 as Covid-19 did to 2020.
Actually, the far bigger and more important question is: are your critical suppliers—especially those you depend on to maintain and repair your vital equipment—keeping you fully informed of these consequential developments?
Furthermore, what tools and technologies have your key suppliers provided you with so you can better plan and manage through limited product and part availability with real time information? To what extent have these service providers invested in advanced supply chain technologies themselves?
Industry 4.0 principles are the bare minimum for protecting your production assets; relying on a commercial hvac, refrigeration, cooking and plumbing installation, maintenance and repair service provider lacking deep supply chain expertise, supported by essential technological, operational and communicative infrastructure poses serious risk to your business at this most pivotal time. Just as 2020 was defined by a virus we couldn’t see, 2021 will assuredly be shaped by a badly infected global supply chain that may currently be invisible to you.
Scenario planning well over a year ago The Day & Nite family of companies not only embraced Industry 4.0, the company aggressively invested in and developed proprietary means and methods to proactively vaccinate foodservice ahead of the surging supply chain virus. Available to contract customers at no additional fee, these technologies and devices guard against hospitality business interruption at a time predictably reliable execution is more important than it has ever been.
Expanding the definition of service excellence to mean much more than competently taking care of equipment, Day & Nite/All Service/Popular Plumbing customers also receive ongoing guidance to ensure sustained business momentum. Total Food Service readers deserve at least the most salient of The Company’s advice: avoid getting caught up on the wrong side of these damaging trends, get your equipment properly maintained and repaired now!
If you want to focus your time and energies running your business by partnering with a service provider uniquely equipped to manage your critical assets, allowing you total peace of mind and control, email jbf@wearetheone.com
