The Sad Demise of the Food Industry
The food industry’s supply‑chain performance has collapsed between 2016 and 2025, with average operating margins slipping to 11% and inventory turns falling to 7.82, marking a 35% decline in inventory efficiency. Legacy 1990s practices—such as rigid demand‑error reduction and outsourced product launches—have persisted despite rising commodity volatility and a consumer shift toward cheaper private‑label brands. Large incumbents like Campbell’s, Kraft/Heinz, and General Mills underperformed, while poultry producer Pilgrim’s Pride surprisingly outpaced them. The sector’s failure to leverage point‑of‑sale data or AI has compounded complexity and order latency.
Don’t Forget To Question First Principles and Design the User Experience
The article urges supply‑chain leaders to revisit first‑principles and apply design‑thinking before adopting AI‑driven tools. It contrasts traditional, metric‑focused planning with a newer model that prioritizes adaptive, bi‑directional flows and user experience. The author shares personal anecdotes to illustrate how...