Reasons for Rapunzel's limited delivery capacity
Procurement in the times of Corona since the beginning of March
Since early March, panic buying of rice, pasta, canned legumes or tomato products made these articles extremely popular from one day to the next. We were not prepared for this. Especially our Italian partners who supply us with most of these products, do their best in order to meet this growing demand. At the same time, the domestic demand for these products in Italy also increased dramatically, because Italy declared a “Corona state of emergency”.
Direct & personal supplier relationships
As a food manufacturer, Rapunzel imports almost all raw materials from the relevant country of origin. We do not purchase any raw materials on spot markets or the commodity market. Direct procurement has long-term advantages for all involved partners. Unforeseeable extraordinary circumstances, however, make it more difficult to react in a flexible and swift manner. At the same time, the long-term, cooperative relationships with our suppliers enable us to keep up our high organic standard also in times like these.
Global supply chains – South America, Asia and Africa
Additional problems are caused by the logistics structures in different parts of the world. In many developing countries, the supply chains work less efficiently than in Europe even in normal times. At the moment, commercial ports work slower or are shut down completely. Transport routes and official export processes require more time or have come to a complete halt. Making use of our existing, cooperative partnerships with our suppliers we are trying to buy as many raw materials as possible through the pre-financing of harvests or through pre-payments to our partners.
This aspect is easily overlooked: the procurement of additional packaging materials requires thorough advance planning. Oftentimes, one needs a timeframe of three to four months for this. In case of additional high demand as we are experiencing at the moment, there will be delays in the availability of packaging materials.
At the moment, our logistics sector is overworked and the logistics department has reached the limits of its capacity – another delivery warehouse is already under construction. Colleagues from different Rapunzel departments are already helping with order packaging and extra shifts help to gain time.