3 Key Takeaways From ArrowStream’s Webinar With Kroll

ArrowStream + Kroll Graphic

1. Supply Chain Disruptions are Inevitable

Along with death and taxes, disruptions to the global supply chain are certain to continue. Recent years have brought a series of disasters that have obstructed and disarranged the world’s supply chains, and the upheavals continue with no end in sight. The Russian-Ukrainian war has resulted in skyrocketing fuel prices and the potential for a global shortage of wheat.


Over the last few months, a massive winter storm across 23 states in the South and Midwest has rendered thousands of miles of road untraversable due to ice on the streets. The world is still reeling from the effects of the coronavirus pandemic, which saw a severe decline in restaurant sales after a transition from 80% dine-in customers to 100% takeout service in the span of two months. Cold storage facilities are in extraordinarily high demand, port delays continue to build up, manufacturing has been squeezed, and the nationwide shortage of delivery drivers persists. Supply chain disruptions are inevitable – the world economy and distribution network will perpetually face wars, pandemics, natural disasters, recessions, and shortages. It is paramount that companies anticipate these disruptions, prepare for them, and invest in the resiliency of their supply chain so that they can still operate and prosper when their supply chain is restricted or impeded.

In response to the continual disarray, ArrowStream’s Chief Revenue Officer, Raj Badarinath, and Chief Product Officer, Bill Michalski, joined Farzad Mukhi, Managing Director at the business consulting firm Kroll, to discuss the importance of supply chain resilience and its role in the value of a business.

From left to right: Farzad Mukhi, Raj Badarinath, Bill Michalski

2. A Quality Supply Chain is an Integral Component of the Value of a Business

When disaster strikes – and rest assured, it will – companies will be forced to adapt to the changing circumstances to survive. Their preparedness and ability to do so are critical factors in determining the company’s value. In the webinar, Farzad Mukhi discusses how a sophisticated and resilient supply chain can significantly improve the value of a business in mergers and acquisitions. A diverse supplier base, quality certifications, visibility and traceability throughout the supply chain, a limited reliance on overseas suppliers, and flexible sourcing options to support current or potential suppliers are positive indicators of a supply chain’s reliability and boost the company’s value. If a business has a single supplier as the source of key ingredients, an absence of certifications, an over-reliance on hyper-regional suppliers, and a history of recalls, supplier-driven delays, or issues with consistency, then there is cause for concern about the reliability of its supply chain which detracts from the company’s value. Putting all of your eggs in one basket is a recipe for disaster. Planning for the inevitable disruptions ensures the viability of your company during times of adversity.

Supply Chain Considerations in M&A Due Diligence

3. Investing in Your Supply Chain Will Pay Dividends

With inevitable disruptions to the supply chain looming on the horizon, it is vital to be prepared. Restaurants can anticipate potential disasters and plan ahead to ensure the resilience of their supply chain by implementing quality standard protections, price protection strategies, and supplier substitution strategies, diversifying their sources of supply and ensuring the fluidity of their logistics network.

To implement these improvements, the company needs access to up-to-date, end-to-end data – streamlined for clarity – and organized in a single, centralized location. They need access to industry trends and forecasts for informed decision-making, the ability to share this data with their business partners, and an institutionalized process of reacting to the changing business climate. This allows for early identification and awareness of supply chain risks and threats, and the ability to ensure that issues do not escalate.Single Source of Truth

With a network of over 60,000 restaurants and over 8,500 suppliers, ArrowStream is the world’s leading foodservice supply chain management platform. Maintaining the supply chain of a business is a difficult and time-consuming endeavor that requires cooperation and efficiency throughout the company. ArrowStream’s single source of truth provides all of the most important data you need to manage your supply chain, streamlined for priority, all in one place with universal company accessibility. The platform alleviates your supply chain difficulties with market insights to ensure up-to-date price optimization as well as ready access to new supply options and logistical means of delivery. Instead of pouring over scattered documents, find out instantaneously what you are running out of, where it’s happening, and what you need to do to keep the train moving.

Don’t let your restaurant supply chain get hampered in the face of adverse conditions. To bring actionable intelligence for the foodservice supply chain to your business, sign up here.

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