Major Out Of Stock Updates
Seven Star Yogurt - This vendor has reached capacity for their milk supply. Sales have been outpacing their ability to keep up with produce and we have seen continuous shortages on all of our orders. The vendor is trying to source more milk which would increase their capacity. The current outlook though is for continued shortages in the future.
POM Wonderful – The demand for their product continues to exceed their demand. They informed us the week of August 1st that the supply will actually be tighter this fall than they had originally estimated. Below is a quote from Rex Lawrence, Director of Sales for POM Wonderful explaining the situation:
“As stated before, we expect a more normal crop from our existing grove this coming season which will increase our supply in 2007. This October/November crop must be harvested, crushed, blended, and filled before it will add to the supply. Therefore, juice from this crop will not be available until January. We also have planted more pomegranate trees and will continue to do so. These trees of course will take time to bear fruit. As has been our position, we will stay true to offering only high quality California grown wonderful variety pomegranates. We will not be adding questionable, less healthful or foreign pomegranate concentrate into the POM Wonderful brand products.”
Kettle Foods Chips - There have been sporadic out of stocks on Kettle Chips over the past few weeks. Kettle has experienced 57% sales growth over the past year, and has struggled to keep up with that growth. They have identified several areas that to make changes to in order to reach their goal of 100% service levels, on time deliveries, and order accuracy. They have hired a new freight and logistics firm that will increase their outbound capacity and should improve their delivery times. On January 1, 2007 they will be consolidating 4 remote DC’s into one 75,000 square foot facility that will stream line picking and shipping capabilities. They have been running their production facility 24/7 to build inventories, and lastly they broke ground on a new production facility that is due to open March 2007 that will give them an immediate 50% production capacity increase. This facility is in Wisconsin which will greatly reduce transportation lead time as well (they currently ship from Oregon). We should see some immediate improvements to their out of stocks, with significant improvements when their other major changes take effect.