Josh’s Rainbow Eggs: Small producers filling supermarket stock gaps

Gaps in supermarket shelves are being filled by small producers, like Josh’s Rainbow Eggs, as the centralised system struggles to deal with unprecedented demand.

SMALL-scale producers are benefiting from a logistics hiccup in the centralised system supermarkets rely on to stock shelves.

The automated ordering system has been overwhelmed by increases in demand as people stock up on staples amid the coronavirus pandemic, forcing many stores to turn to their direct-to-store suppliers rather than getting products from distribution centres.

Monegeetta-based business Josh’s Rainbow Eggs, which deals directly with about 50 Coles and Woolworths stores across Melbourne, said it was struggling to provide enough eggs to supermarkets who needed them.

“We can’t keep up with the demand. The orders are twice as much as usual,” chief executive Tamsyn Murray said. “We’re a small supplier, but in a time like now we’ve been quite important to big Melbourne stores who can’t get eggs.”

Dr Murray said the demand for smaller suppliers’ products appeared to be a logistical problem with the centralised system not able to get enough stock from the distribution centres to the individual stores fast enough.

”Everything works well when it’s all going well, but when there is massive increases in demand, having a more direct and local distribution method has clear benefits for the stores as well as for the suppliers,” she said.

She said direct-to-store suppliers were able to increase or decrease their delivery as the store required, often receiving calls from the store managers in charge.

“Our direct relationship with the stores means there is flexibility and room to adapt and give them what they need when they need it,” she said.

A Woolworths spokeswoman said they had been working closely with direct-to-store egg producers to ensure they had enough product on the shelves.

“We’ve seen an extraordinary level of demand for groceries, including eggs, in recent weeks and have been working round the clock to replenish stock levels as quickly as possible,” she said.

“We thank customers for their patience and support as we continue to work hard behind the scenes to improve product availability across the store.”

Coles were contacted for comment, but did not respond in time.