Supply chain was ‘frequently strained but never broke’, says FWD chief

Supply chain was frequently strained but it never broke, says Federation of Wholesale Distributors (FWD) chief executive James Bielby as he looks back to the wholesale sector in turbulent 2021.

Talking about ingenuity, agility and resilience of the wholesale sector, Bielby pointed out how the year has been the “defining era” of food distribution.

“Through panic buying in retail and the closure of foodservice wholesalers’ hospitality customers, the supply chain was frequently strained but it never broke. To me, the most impressive achievement of this period is that despite everything thrown at them, we didn’t lose a single FWD wholesaler to financial collapse,” he said.

Bielby also said how the year saw many wholesalers taking the digital leap they’d been putting off for years and introducing online sales platforms.

Adding that Parfett’s was one of the first to realise a 24-hour depot could be both a collection destination and a delivery hub, Bielby informed how depot owners suddenly have a promising variety of uses for their space.

“They’re seeing partnerships with last-mile B2C delivery services for both grocery and prepared meals, and perhaps beyond that, the prospect of dark stores and kitchens aligned to wholesalers – something which even a year ago may have felt beyond their grasp,” he wrote.

Bielby acknowledged how wholesalers were able to cope labour shortages in food production and distribution.

“The labour shortages in food production and distribution were mirrored in fuel and packaging supply chains. Again, it’s incredible how well wholesalers adapted to the drop in availability and managed their customers’ expectations as inbound delivery plummeted.

“None of these challenges are over yet and with costs sure to increase, we’re going to need a lot more of that flexibility and honest conversation between suppliers, wholesalers and customers in the coming year,” he wrote.

Talking about 2022, Bielby pointed out some pressing issues facing the industry.

“Next year will bring a fresh set of challenges, starting literally on day one with the changes in rules for imports from the EU on 1 January.

“By the end of the year we will have had to prepare for new ways of working with plastic and other packaging materials, harsher restrictions on less healthy food, and a long-term upward trend in fuel, energy, wage and stock costs,” he wrote.