filling the orders. The Progressive executive said the first inclination by retailers was to reduce their SKUs and carry fewer potato options, but Progressive was more efficient by having all of its packing equipment running at the same time churning out the various pack sizes. A retailer might have only wanted 10-pound bags but Progressive could deliver more pounds of potatoes if that retailer would take five-pounders, three-pounders and value-added packs as well. The company also shifted to mesh bags as that is a more efficient operation and they could pack more pounds per hour, and consequently increase their sales. “We were constantly making adjustments to make sure we were running at maximum efficiency as much as we could. Units per hour was our most important measurement.” Progressive also had to work closely with its bag suppliers as they weren’t initially ready for the influx in orders. “In fact, we did do some packing in some old bags because we had them on hand.” And the company did direct store delivery for some customers as that was more efficient for the retailer than taking loads to the distribution center. “The coolest takeaway is that it brought us closer to our customers as we worked to solve these issues,” Leimkuhler said. “There was a lot of collaboration and teamwork to make it happen.”
Harvesting broccoli with PPE at Ocean Mist Farms
Progressive Produce Corp., Los Angeles, CA Like the other companies interviewed, Progressive Produce Corp.’s first reaction to the coronavirus was to protect its employees. It enacted many new protocols from working at home to safely working in the company’s facility. It enacted rules requiring masks and social distancing and worked with its own affiliated transportation company, Pathfinder Logistics, to safely supply its customers with product. While there were many additional costs associated with these measures, Progressive was one of the more fortunate companies to have a product lineup that matched well with consumer demand. “We got lucky,” said Scott Leimkuhler, senior vice president of sales. “Three of our main items—potatoes, onions and citrus— saw sales increases as panic buying set it. We worked closely with our customers and with Pathfinder to fill those orders.” Leimkuhler said that for a 20-day period from mid-March, the company operated 24 hours a day, packing mostly potatoes and onions. “We ran the equipment as efficiently as we could. Everyone did a fantastic job.” Two months later, the company is still running around the clock but the orders have started to stabilize. “The initial 20 to 30 days were crazy. For a couple of weeks, the IRI data (retail scan data) from Nielsen showed that potatoes were the number one produce item.” Progressive does have a significant foodservice business with its “Hollywood Fries” bulk pack, but Leimkuhler said the jump in retail sales easily made up for the lack of foodservice business. But it wasn’t as simple as just running the machinery and
Ocean Mist Farms sanitizing buses
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JULY | AUGUST 2020
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