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We plan to keep this page updated with timely information from Avendra’s team of procurement experts, who are carefully monitoring the supply chain. We hope this will serve as a useful tool for your business during this challenging time. Please check back for updates as new information and guidance becomes available.
Global Supply Chain Impacts
(As of March 31)
Avendra is continually tracking the global progression of the coronavirus and its implications on the hospitality supply chain. The following is our current assessment of the implications from COVID-19, provided by Avendra’s strategic sourcing experts:
- Production in China is coming back on-line. There could be some disruption for when production start-up was delayed following the Chinese New Year, but the recovery for that disruption will be measured in weeks, not months.
- The food supply chain in North America is secure and operating normally. While there are empty shelves at retailers, we do not anticipate wide-spread food or food-related (e.g., disposable packing) shortages.
- Widespread factory shut-downs to try to contain the virus are not expected; however, it is possible that some factories will run at lower utilization rates than normal for several weeks to accommodate skeleton staff.
- Distribution of food and other materials may be delayed, or suppliers may go to fewer delivery days/week because of either skeleton staff or reduced demand. Communication with distributors is critical to keeping the local supply chain as efficient as possible.
- Significant demand on certain categories in retail is causing short term stock challenges for food service.
- Changes to supplier return policies are occurring during an unstable demand period.
- The current critical short-supply items include masks and sanitizer. Disinfectant has some shortages on specific items (but substitutes exist).
Supply Chain Impacts, By Category
(As of March 28)
Our strategic sourcing experts have outlined the potential short, medium and long-term supply chain impacts by affected categories.
Guidance for Hospitality:
4/8 at 2:00 PM EDT (Registration Open): Supply Chain Updates with the Asian American Hotel Owners Association
Visit the Centers for Disease Control website for the latest guidance
How can Avendra help?
Let us know: CustomerService@avendra.com
If you’re an Avendra customer, make sure you are subscribed to Avendra Advisory emails to stay up to date on any critical supply chain information.