Inventory management has become a guessing game for supermarket chains. Grocers say they are coping with unpredictable deliveries and shifting shortages of products as they try to keep shelves stocked. The WSJ’s Jaewon Kang reports the uncertainty and stopgap strategies are compounding strains in supply chains. Suppliers have limited shipments of some packaged foods as they manage shortfalls in raw materials while grocery buyers are snapping up extra inventory whenever they can, pulling forward orders and sending their own trucks directly to manufacturing plants to speed up delivery times. They say managing inventory has become “like whack-a-mole,” as they track down vendors, manage late-arriving trucks and search for substitutes for out-of-stock items. Grocery giant Kroger is even adding warehouse space to hold safety stock of more than 70 staples. The extreme efforts show the supply crisis that began with the pandemic are still guiding supermarket operations management strategies.
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