Distribution in the Food Industry: Impact of the 2020 Truck Driver Shortage

Abstract

Today’s Food Industry is a world met with customers with a right-now mentality and increased expectations for special orders. Every day has become a battle of continuous improvement in order to meet customer satisfaction. In the past year alone, including pre-COVID-19, eleven of eighteen limited-service category restaurants have seen a decline in customer satisfaction. The greatest challenge is a lack of inventory. Nearly seventy percent of freight in America is distributed though the trucking industry, and there are not enough drivers to meet scheduling demand and deliver inventories. This paper examines the impact of the continuing truck driver shortage, and offers suggestions for ways that it may be alleviated. We also focus on how one very large, national fast-food chain has taken its own steps to address this situation as well as the impact of the coronavirus on all aspects of the supply chain. Benefits and limitations of these approaches are offered, along with exploring the notion that Ecommerce and last-mile Distribution Centers may be the answer for the future.