02 Aug Explain what channel conflict is
Article: Newman, J. Kang, J. & Gasparro, A. (2021, May 7). Grocers, Restaurants to Suppliers: Hurry Up, Make More. The Wall Street Journal. https://www-proquest-com.nuls.idm.oclc.org/docview/2522606029/fulltext/334F61D79DCA4F5APQ/4?accountid=25320
Summary: Friction between food retailers and their suppliers is adding costs across the food chain. Big buyers including Walmart Inc. and Sysco Corp. are fining suppliers over infractions like late or incomplete orders. Meanwhile, many food makers and distributors say labor shortages, supply constraints and high freight costs are making it difficult to deliver complete, timely orders.
Questions:
1. In your own words, explain what channel conflict is. Then, explain how this article provides an illustration of channel conflict.
2. Offer at least two recommendations for how the industry might reduce the channel conflict that’s presently happening between buyers and suppliers.
3. What long term changes might be necessary in the food industry to prevent future shortages in the supply chain like those that are happening now?
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