Burlap & Barrel: A Spicy, Single-Origin Supply Chain

Burlap & Barrel was an upcoming and successful public benefit corporation based in the Queens borough of New York City that imported spices from foreign farms and sold them to restaurants, gourmet food stores, home cooks, and other food services in the United States and other markets. In March 2020, when COVID-19 gripped the world and forced most food establishments to close down temporarily, the two co-founders of Burlap & Barrel saw an instant drop in their revenues because half of their sales volume normally came from restaurants. To stay afloat in the pandemic, they changed their focus from wholesale channels to a direct-to-consumer business model. Media coverage in major outlets helped demand increase, but the shift from wholesale to direct-to-consumer raised many supply chain inefficiencies in sourcing, storing, packaging, and transportation. In early 2021, as restaurants began gradually reopening, the two B&B co-founders became concerned about meeting the growing demand from both direct-to-consumer and restaurant orders while retaining their core ethical, environmental, and business values.

This case is suitable for undergraduate- and graduate-level courses on supply chain management, marketing, and operations management. The case is best used at the beginning to middle point of a course, after students have gained an understanding of the basic supply chain concepts and issues that can arise when businesses grow and expand.<br><br/>In graduate-level courses, this case can provide a preliminary framework for a business development plan, with suggested strategies that small businesses should consider in times of uncertainty. In an operations management class, the case discussion can cover topics such as forecasting, quality management, and inventory management.<br><br/>This case highlights supply chain challenges businesses encounter when they expand their operational model (in this case, from wholesale to direct-to-consumer (DTC)), causing an increase in demand and fulfilment logistics. The case examines practical, ethical, financial, and managerial challenges resulting from a strategic business pivot and the subsequent need to scale up operations. After working through the case and assignment questions, students will be able to do the following:<ul><li>List common supply chain issues that small businesses face when they grow and attempt to scale up their operations.</li><li>Discuss common supply chain challenges when sourcing globally.</li><li>Understand the differences between a single-source supply chain versus a multi-tier (commodity) supply chain.</li><li>Understand the differences between selling to wholesale customers versus individuals over a DTC channel.</li><li>Devise strategies for small business owners to keep their supply chains efficient (meet demand at the minimum cost possible) while they are growing.</li><li>Consider the supply chain implications of a social impact business model.</li></ul>

• spices
• supply chain
• food
• COVID-19
• pandemic
• small business
• marketing
• operations management
• sourcing
• restaurant