Retailers working to keep supply chains resilient as inflation bites

Retailers working to keep supply chains resilient as inflation bites

Supermarket retail groups say they are working with their suppliers to ensure their supply chains remain resilient despite potential issues including the war in Ukraine and inflation.

Retail chain and wholesaler Musgrave said they were in constant contact with suppliers, and have a robust and resilient domestic and international supply chain.

A spokesperson told the Sunday Independent: We are working with suppliers to understand the impacts of the war in Ukraine, and our focus remains to ensure our customers continue to have access to their favourite ranges.

“We are confident that with 75% of all our goods being sourced in Ireland, we can continue to deliver the best value and quality Irish products for our customers during this uncertain time.”

The SuperValu owner also said it previously stocked a “very limited” number of Russian manufactured products and decided to discontinue them.

BWG Foods also said it had decided to cease the supply of products from Russia. It sourced a limited supply.

The Eurospar owner also said it was “engaging proactively and regularly” with many of its suppliers since the beginning of the conflict to determine the impact on food supply chains.

“Inflationary trends have been prevalent for several months now – however the combination of sanctions imposed on Russia and paralysed production in Ukraine, with both countries ranking amongst the world’s largest agricultural producers and exporters, is causing a surge in some food prices globally,” said Simon Marriott, chief operations officer of BWG.

“Our own supply chain in BWG Foods remains robust, and we do not expect any material impact on supplies, however some suppliers will undoubtedly seek to increase prices as a means of accounting for their higher input costs, and this will have implications for the wider grocery sector and also the
foodservice sector too.”

Lidl Ireland also said it is in constant contact with its suppliers to discuss sourcing or supply chain challenges, be that “other external factors such as the war in Ukraine” or inflationary pressure. However, it added that it was “difficult to predict” the war’s impact.

Aldi Ireland group managing director Niall O’Connor said the supermarket had been working hard to ensure its customers were protected from any inflationary pressures.

“Our buying teams are working very closely with our suppliers to ensure that there is minimal disruption to our supply chain so that our customers across the country have access to all the food and provisions they need.

“Aldi will continue to do everything to shield our customers from price increases as much as possible.”