The country’s response to COVID-19, known as the coronavirus, has seen busy times for grocery stores as Americans stockpile canned goods, non-perishable food and household supplies to prepare for more time at home.

Doug Voss, Ph.D., director of the Center for Logistics, Education, Advancement & Research and Scott E. Bennett Arkansas Highway Commission Chair, said inventory in the channel to grocery stores is plenty as most stores receive multiple loads of product a week, and some multiple shipments a day.

“Thank a truck driver next time you see one,” he said.

Voss took part in a Q&A with us to explain how the supply chain and logistics industry responds to a crisis like COVID-19.

How does the supply chain industry respond to situations like this? Does it compare to the everyday hustle with just a few more shipments, or are there certain trips in the system that brings about a change?

“Demand is the primary driver for supply chains. As demand for certain items increases, production and transportation of that item will frequently increase as well. Demand fluctuations are an everyday occurrence. The current spike in demand for some items is pretty extraordinary but manageable thanks to the hard work of our truck drivers, warehouse workers and supply chain managers.”

Many news reports show empty shelves in several stores in the past couple of weeks. Are stores running out of products too quickly? How often are stores in our area receiving shipments?

“A simplified supply chain consists of a network of suppliers, manufacturers, storage facilities, transportation service providers and retail outlets. Inventory is held by each member of this network to some degree. The bare shelves at your local retailer are caused by demand that exceeded inventory availability in a short amount of time.

However, that doesn’t mean there isn’t plenty of product. There is plenty of inventory in the supply chain for almost every product. It’s just a matter of moving that inventory from the supplier or warehouse to the supermarket where we buy our goods.

The retailer monitors real-time sales and inventory levels. The replenishment process begins when inventory gets low. The supply chain is specifically designed to quickly replenish goods. Your local supermarket may be replenished by several trucks each day with each truck delivering a specific assortment of goods for that store.

Store shelves are constantly replenished, but now that the initial COVID-19 demand spike is complete, the supply chain will be able to catch up. That’s what the system is designed to do and it does it very well. Other than hand sanitizer, there would be plenty of product to go around if we all showed a little more restraint at the store.”

What are the problems or issues that could cause issues in the supply chain?

“The ‘kinks’ that would cause this system to break down include labor shortages or other calamitous events that stop the manufacture or flow of goods. We haven’t seen anything that would shut down the supply chain yet. Things will generally go well as long as we can keep manufacturing and moving product.”

The federal government has taken steps to remove regulations in response to the crisis. Why was that seen to be necessary to deal with COVID-19?

“The federal government has suspended many regulations on trucking companies engaged in the movement of goods critical to support our medical community and societal needs. Trucks are the only mode of transportation that can deliver goods to the front door of most locations. Without trucks, everything shuts down including the ability to decontaminate drinking water.

As an example of a suspended regulation, the federal government has temporarily removed hours of service regulations for companies hauling critical freight. This effectively expands the amount of trucking capacity by allowing drivers to work more hours each day while also speeding time to market for the critical goods they carry. We are all better off if medical supplies and food are replenished faster.”

What are the issues to watch for in the next few days or weeks?

“There was a big increase in demand for trucking services following the initial surge in grocery demand. However, many other shippers — the “Big 3” auto manufacturers — have idled production and the initial consumable demand has subsided to a degree. This means that some trucking companies will have idle capacity but, perhaps more importantly, many shippers may not be able to pay their bills. Cash flow is always important but especially at this critical juncture. Companies need to avail themselves of assistance resources available from the state and federal governments.”

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