Operations Column | Supply Chain
Reinventing C-Store
SUPPLY CHAINS Alliances across trade organizations can help bridge supply chain cracks. Dan Varroney • Potomac Core
The magnitude of supply challenges is far too complex for any one company to address on its own. Interestingly enough, supply chain cracks existed before COVID-19. Yet, many of us were not aware of the extent of these fissures until the pandemic took hold. Between 80-90% of the world’s goods travel by ship at some point in their supply chain journey. As demand far exceeds supply, issues abound from shipping container shortages to port bottlenecks. On top of these difficulties are rising energy costs and labor costs, which means it’s a lot more expensive to ship goods to convenience stores today. COVID-19 disrupted markets and supply chains, and it also accelerated new thinking. For c-stores it’s an opportune time to reimagine supply chains and build a long-term, more durable strategy. It starts by moving away from a “just in time” approach to new thinking that incorporates “just in case” strategies. These are best leveraged by 52
CSTORE DECISIONS •
August 2022
bringing all aspects of the c-store supply chain together to collaborate and innovate more durable solutions. This approach can help c-stores identify points of failure throughout their supply chain and help determine pre-competitive solutions. STRATEGIC PARTNERSHIPS
Forming strategic partnerships between industry trade associations is one of the more compelling pathways forward. Since the pandemic, trade associations have demonstrated considerable leadership potential. These organizations are adapting and, in several cases, positioned as strategic business units of the industries they serve. In each case they are neutral integrators including all companies, and they can collect information on points of failure in the supply chain. The trade associations then build advocacy strategies that shape a far more favorable business environment that leads to resilient supply chains. One of the more successful partnerships occurred in the baking industry through the American Bakers Association (ABA). ABA is a wellknown, established force that leads and convenes
cstoredecisions.com
