As congestion at U.S. ports causes delays Agritalia says communication and the company’s own data analyzing software provide for no interruptions in delivering their products.
Eighty percent of business for Agritalia is in the U.S. When the pandemic shut down much of the world, the company began to work with distributors and international shipping companies. “Our first goal was to make sure we would not have any out of stock,” says Leo Nucera, Sales and Marketing Director at Agritalia. Second, the company was working to anticipate extra demand of supplies with companies to make sure there weren’t any holes on the shelf.
The company’s plan to prevent delays and no out-of-stock products is assisted by their propriety software that analyzes sales data. The Cloud Sourcing Intelligence collects and analyzes information from vendors, retailers, distributors coming from all supply chain players. The software estimates assortment needed for retailers by generating automated replenishment programs.
Nucera describes the software as a win-win. For example, distributors reduce overstock, and retailers are given the option to place fresher products on the shelves.
While Agritalia isn’t affected by shipping delays, the company has felt inflation. It has been reducing margins where possible. According to the U.S. Department of Agriculture, grocery food purchases were 3 percent higher than in August 2020. Private brands are appealing to customers amid inflation. Nucera says it is a growing trend in the U.S. The U.S. averages about 23% of private brands compare that to the U.K. with 50%. While price is an important factor for private brands. Nucera says innovation and immune defense food are two growing trends for private brands.