Chicken supply chain still struggling with inventory logistics

Inventory planning, management and logistics remains a major challenge for the chicken supply chain, particularly when it comes to frozen birds, Raymond Hogan, senior poultry supply buyer/business manager, Applegate, emphasized during the Supply Chain Partners Panel at the 2024 Chicken Marketing Summit.

According to Hogan, frozen inventory for chicken surged last year. This is due to several factors, including fluctuating consumer demand coming out of the COVID-19 global pandemic that made accurate inventory forecasting difficult.

“Planning for the short term, planning for the long term – especially with a niche supply – is incredibly important. However, forecasting is not always perfect,” explained Hogan.

Despite an increased frozen inventory, Hogan still contracted with his suppliers for additional product in 2024. “It’s important to their success. It’s important to our success,” he noted.

Keeping excess inventory in cold storage has certain liabilities. Shelf life is one, with worries about equipment failure being another. At Applegate, all product needs to be less than six months old, although it can be safe to store raw frozen chicken for up to a year.

Ensuring that inventory transportation from cold storage to retail can also impact chicken supply chain efficiency. Sometimes trucks are late or the wrong product gets sent or equipment failure occurs en route. Any of these can negatively affect the quality of product put out for sale.