June 4, 2020
An Important Supply Chain Update from Sofo Foods
To our customers

At Sofo Foods, we compare the current business environment to a river – a river none of us have ever been on before. As we continue to navigate these uncharted waters, we are continuously evaluating the best course for our customers and our company. These evaluations are based upon facts, because history is not there to be drawn upon. Each week, each day, we all face new challenges. Nevertheless, if we base decisions on facts, and choose the best solutions with those facts, we’ll all make it through this together.
We also understand the new conditions we find ourselves in necessitate honest, open, communication. Moreover, those lines of communication must remain open, for all us to share what we know and what we are doing. That is the purpose of this letter.
As you’ve likely seen, the supply chain is reeling from the down and up trends in the market. Predictably, closures drove demand down in many segments, but also created great spikes in demand in others. As businesses begin reopening, supply chain variances have been stretched.
To help ensure the flow of products to our customers, Sofo Foods has taken the following steps and will continue to develop new answers to new problems daily:

  • We’ve expanded our Safety Programs and monitor them daily for compliance. If we are to continue serving you, we must make sure we are safe to do so

  •  We’ve expanded our communications internally and externally, to make sure we can provide up to the minute details on products and inventory status

  •  We’re normalizing our orders, to ensure product is available for all of our customers

  • We’ve secured new options for products and are providing like substitutes when necessary

  • We’ve increased efficiencies in all departments and have short and long-term plans, not just in place, but in action

  •  Daily reviews of each step in our processes, from Procurement to Delivery to ensure we’re doing everything possible to keep our customers supplied

Let’s be honest – because that is a large part of our communication model – despite all of the above, we all know things are not “normal”. Outs and shorts have become the norm, rather than the exception. Vendors, who normally provide over 99% percent fill ratios are sending us letters stating, “we’re doing our best, but 75 - 80% is the new 99%”. 
Pricing fluctuations have also been unprecedented. Through partnerships, selected purchasing, and process improvements, we’re doing all we can to minimize the impact of cost increases. Please note however, supply and demand will dictate price changes beyond anyone’s control.
We want you to know, Sofo Foods is taking every measure to mitigate the impacts on the supply chain to you. Stability will return at some point, but until then, know that we are doing everything possible to keep you in business.
If we all work together, we will all be there together, when this river ends.
Thank you for your continued partnership!
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