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Coronavirus Panic Buying Poses An Operational Nightmare For Supermarkets

Birmingham Business School's Andrew Parker explains the operational nightmare that coronavirus panic buying poses for supermarkets

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Fri Apr 10 2020

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If found please contact no-one, keep it for yourself, and run, run as fast as you can and hide it at the base of your deepest cupboard. 

When the coronavirus (COVID-19) pandemic hit the UK, operations management came under duress. Panic buying led to empty shelves, stressed shop workers, and a population that questioned whether it would ever see toilet roll again. 

Overnight the means by which we bought and consumed food shifted from a split of supermarkets, restaurants, takeaways, and hotels, to almost entirely supermarkets, alongside an array of delivery drivers rushed off their feet to feed a nation. 


Why coronavirus panic buying created an operational nightmare for supermarkets

Though the amount of food we consume didn't change in that time, the demand surged.

Andrew Parker, a module leader on the University of Birmingham Business School’s Online MBA and the director of online content for both the Online MBA and distance learning MSc Interantional Business at the school, says it’s the kind of scenario that’s impossible to plan for from an operational point of view. 

“That over stresses the system, both within the store and the supply of products to the store,” Andrew (pictured right) explains. “If you look at the supply that comes mainly from massive warehouses and distribution centers that feed into supermarkets and small stores. 

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“They’ve effectively been set up since time began with a certain amount of capacity, in terms of logistics, trucks, and people. Any kind of chain like that would have flexibility in it if, say 1,000 tons rose to 1,100 tons, maybe 1,200.”

But not when it reaches a surge in demand that was seen at the break of March, when the panic buying set in. Whereas before people might go to the supermarket once per week, individuals were going day after day—a consequence of not finding the products they were after the day before. 

In the UK, BusinessInsider reported that British supermarkets brought in a record $13.25 billion in March 2020, and sales were up the four weeks to March 22nd by 20.6%.

On top of a surge in sales, the social distancing measures brought in by governments worldwide meant that the physical space a supermarket has was squeezed, as people suddenly had to be at least two meters apart.

That, explains Andrew, means they were dealing with operational stress that went from “nothing to a total explosion in two weeks.”


Can supermarkets prepare for this type of crisis?

Essentially, supermarkets can’t prepare for this kind of crisis. Although, as Andrew points out, there will be the capacity to deal with a temporary surge in demand around Christmas, or Easter, the demand increases brought about by the coronavirus (COVID-19) pandemic is something that can’t be planned for. 

If you were in charge of operational contingency planning at Tesco, Sainsburys, or Aldi, for example, and went to your boss and said, ‘I have this contingency plan in case there’s a one in a billion chance we might have a virus in next few weeks, so I propose we double our inventory and hire 10,000 more people and change the layout of our supermarket,’ they might look at you as if you’ve lost your marbles. 

“I don’t think you can plan for something like this, as no one would ever approve it or invest as much in it just because we might need it,” says Andrew.

He thinks that we may see a similar pattern when government’s give the green light for people to revert back to some degree of normality. “You might find initially there is another mini rush to the supermarkets or clothes shops because people think, quick I’ve got to get everything now while it’s open, before it closes again—it might actually get worse yet, who knows.

“Releasing us from this control, coming down the curve, is more of an operational challenge from what we’ve done so far.”


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©NikolaBarbutov


What impact will this have on the Online MBA at Birmingham Business School?

On the operations management module on the Online MBA, students talk about demand changes and inventory management, and are asked to solve a business case for a growing company facing an increase in demand. 

They stress test the business and, Andrew points out, use a lot of management theory that could be adapted for the coronavirus pandemic. 

The Online MBA at Birmingham Business School is also positioned as a leader in responsible management. 

So, how does that apply to the coronavirus pandemic?

“Nothing has changed apart from the size of the problem, so every responsible leader now has to make sure their people are safe, they have the right working conditions, are paid fairly, and look after the customers who come onto the premises.

“There is a conundrum here for the individual leader. You’ve got to keep your people safe more so than ever but you can’t have a viable business operating at a loss—that trade-off is what every business will have to go through.”

Student Reviews

Birmingham Business School - University of Birmingham

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7/10/2023

On Campus

An amazing experience

Great, knowledgeable faculty with a beautiful campus. Lots of societies and clubs to choose from in accordance with your interest. One can also discover scholarship opportunities here. The course is perfectly designed and the career services at the uni are very helpful

Melanie

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6/10/2023

On Campus

The beautiful campus and teaching expertise.

Overall the University of birmingham is just an incredible institution. From the array of expertise teachings and how phenomenal the campus is definitely enhances its beauty and is enriched with the amazing resources and incredible people that are always willing to help and make you feel welcomed everywhere you go. I would 100% recommend the University of Birmingham to be one of the best universities out there and through not only the various courses that they offer but all the social societies definitely adds to the fun and great opportunities that it provides

chikondi

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4/10/2023

On Campus

Exceptional Support for international Students

Exceptional Support for International Students As an international student, my experience at the University of Birmingham has been nothing short of extraordinary, thanks to the outstanding support provided for international students. I would like to share my thoughts and experiences regarding the exceptional support I've received during my time here. From the moment I arrived on campus, it was evident that UoB prioritizes the well-being and success of its international students. Here are some key aspects of the support I've received: 1. Orientation Programs: The university's comprehensive orientation programs helped me acclimate to campus life, navigate administrative processes, and understand the academic system. I never felt lost or overwhelmed, thanks to the informative sessions and friendly staff. 2. Academic Advising: The academic advisors for international students are incredibly knowledgeable and approachable. They assisted me in creating a personalized academic plan, selecting courses, and understanding degree requirements. Their guidance ensured that I stayed on the right track academically. 3. Language Support: UoB offers exceptional language support services, including English language courses and conversation partners. These resources were invaluable in improving my language skills and building confidence in my communication abilities. 4. Cultural Integration: The university fosters a diverse and inclusive environment, making it easy for international students to feel like part of the community. There are numerous cultural clubs, events, and workshops that allow us to connect with fellow students and celebrate our diverse backgrounds. 5. Mental Health and Counseling Services: Recognizing the challenges that international students may face, the university provides excellent mental health and counseling services. It's comforting to know that support is available when needed, and these services are respectful of cultural differences. 6. Career Services: UoB offers exceptional career services tailored to international students. From resume workshops to job fairs, they've been instrumental in helping me prepare for my career post-graduation. The university's strong network of alumni has also been a valuable resource. 7. Visa and Immigration Assistance: Navigating the complexities of visa and immigration regulations can be daunting, but the university's dedicated staff provided guidance and assistance throughout the process. Their expertise made the experience seamless. 8. Housing Support: Securing suitable housing can be a challenge for international students, but the university offers assistance in finding on-campus housing options with flexible payments. This support ensured that I had a safe and comfortable place to live. 9. Financial Aid and Scholarships: UoB offers various scholarships and financial aid options for international students. Their commitment to making education accessible is commendable, they also provide financial support for graduation through the guild of students.

Student

Verified

16/02/2023

On Campus

student experience

I highly recommend the University of Birmingham. I think the school environment is very friendly to international students. I was able to get guidance and help from students in the school. I was also able to get support and guidance from the professional team on my career path. I would recommend the University of Birmingham to first-time international students and Masters students.

Student

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29/01/2023

On Campus

There is always somebody to help!

The university respects the culture and background of their highly diverse student. It carters to everybody's need and puts its student first. It tries to the make the student feel at home and helps them deal with the university life.

Student

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27/01/2023

On Campus

Variety

I love studying Pharmacy at Birmingham and would absolutely recommend it, especially because of the variety in every aspect of the course. Firstly, the variety of people you meet from all areas around the country, and even countless others from outside the country. Each person has a different background and experiences creating a melting pot of personalities to interact with. Next, the lessons - there are numerous types of lessons we encounter on a weekly basis from lectures to dissections to a computer workshops. Additionally, specific to medical degrees, I have 7 placements annually in hospital, community, and GP pharmacies. The only lack of variety in the pharmacy course is the classrooms since there are limited number we can use and the medical school is separate from the main campus. The only part I don't enjoy about pharmacy is the distances and unreliability of public transport in Birmingham. Living in the vale, the university is a long 25-minute walk away and my closest shop is over 10-20 minutes to walk. Although there are closer accommodations, I really love my flat with its modern decor, large room, and social aspect of the shared kitchen.

Student

Verified

4/01/2023

On Campus

Experience at University of Birmingham

University of Birmingham has been an outstanding university. They have provided complete support during COVID-19. The university is incredible when accessing support with mental health. I currently study criminology at the university of Birmingham. The course has been brilliant, with constant support from lectures and tutors to ensure that you achieve the best grade possible. I could not recommend University of Birmingham more!

John

Verified

2/12/2022

On Campus

Cool

Great campus for studying with kind and professional staff and the campus is very well connected to the city center. There were so many people who wanted to enroll in the course that they had to queue for a new course for six months in advance. The classes were always crowded, but the professors never let anyone through. I love this uni

Joshua

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30/11/2022

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A very welcoming uni

This university is regarded as one of the best in the world. They provide a welcoming environment that enhances the lives of the students because each one of them has a sense of community and a desire to study.

Beining

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21/12/2023

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The professor's instructive pedagogical approach.

Professors in the College of Arts and Law at the University of Birmingham tend to employ a facilitative pedagogical approach in their teaching. They guide students in language analysis through the application of discourse analysis and methods of linguistic research, fostering the students' ability to analyze various texts. The overarching goal is to maximize the impact of language. The entire process is characterized by a systematic and gradual progression, infused with a sense of humor and engaging elements.

Student

Verified

7/10/2023

On Campus

An amazing experience

Great, knowledgeable faculty with a beautiful campus. Lots of societies and clubs to choose from in accordance with your interest. One can also discover scholarship opportunities here. The course is perfectly designed and the career services at the uni are very helpful

Melanie

Verified

6/10/2023

On Campus

The beautiful campus and teaching expertise.

Overall the University of birmingham is just an incredible institution. From the array of expertise teachings and how phenomenal the campus is definitely enhances its beauty and is enriched with the amazing resources and incredible people that are always willing to help and make you feel welcomed everywhere you go. I would 100% recommend the University of Birmingham to be one of the best universities out there and through not only the various courses that they offer but all the social societies definitely adds to the fun and great opportunities that it provides

chikondi

Verified

4/10/2023

On Campus

Exceptional Support for international Students

Exceptional Support for International Students As an international student, my experience at the University of Birmingham has been nothing short of extraordinary, thanks to the outstanding support provided for international students. I would like to share my thoughts and experiences regarding the exceptional support I've received during my time here. From the moment I arrived on campus, it was evident that UoB prioritizes the well-being and success of its international students. Here are some key aspects of the support I've received: 1. Orientation Programs: The university's comprehensive orientation programs helped me acclimate to campus life, navigate administrative processes, and understand the academic system. I never felt lost or overwhelmed, thanks to the informative sessions and friendly staff. 2. Academic Advising: The academic advisors for international students are incredibly knowledgeable and approachable. They assisted me in creating a personalized academic plan, selecting courses, and understanding degree requirements. Their guidance ensured that I stayed on the right track academically. 3. Language Support: UoB offers exceptional language support services, including English language courses and conversation partners. These resources were invaluable in improving my language skills and building confidence in my communication abilities. 4. Cultural Integration: The university fosters a diverse and inclusive environment, making it easy for international students to feel like part of the community. There are numerous cultural clubs, events, and workshops that allow us to connect with fellow students and celebrate our diverse backgrounds. 5. Mental Health and Counseling Services: Recognizing the challenges that international students may face, the university provides excellent mental health and counseling services. It's comforting to know that support is available when needed, and these services are respectful of cultural differences. 6. Career Services: UoB offers exceptional career services tailored to international students. From resume workshops to job fairs, they've been instrumental in helping me prepare for my career post-graduation. The university's strong network of alumni has also been a valuable resource. 7. Visa and Immigration Assistance: Navigating the complexities of visa and immigration regulations can be daunting, but the university's dedicated staff provided guidance and assistance throughout the process. Their expertise made the experience seamless. 8. Housing Support: Securing suitable housing can be a challenge for international students, but the university offers assistance in finding on-campus housing options with flexible payments. This support ensured that I had a safe and comfortable place to live. 9. Financial Aid and Scholarships: UoB offers various scholarships and financial aid options for international students. Their commitment to making education accessible is commendable, they also provide financial support for graduation through the guild of students.

Student

Verified

16/02/2023

On Campus

student experience

I highly recommend the University of Birmingham. I think the school environment is very friendly to international students. I was able to get guidance and help from students in the school. I was also able to get support and guidance from the professional team on my career path. I would recommend the University of Birmingham to first-time international students and Masters students.

Student

Verified

29/01/2023

On Campus

There is always somebody to help!

The university respects the culture and background of their highly diverse student. It carters to everybody's need and puts its student first. It tries to the make the student feel at home and helps them deal with the university life.

Student

Verified

27/01/2023

On Campus

Variety

I love studying Pharmacy at Birmingham and would absolutely recommend it, especially because of the variety in every aspect of the course. Firstly, the variety of people you meet from all areas around the country, and even countless others from outside the country. Each person has a different background and experiences creating a melting pot of personalities to interact with. Next, the lessons - there are numerous types of lessons we encounter on a weekly basis from lectures to dissections to a computer workshops. Additionally, specific to medical degrees, I have 7 placements annually in hospital, community, and GP pharmacies. The only lack of variety in the pharmacy course is the classrooms since there are limited number we can use and the medical school is separate from the main campus. The only part I don't enjoy about pharmacy is the distances and unreliability of public transport in Birmingham. Living in the vale, the university is a long 25-minute walk away and my closest shop is over 10-20 minutes to walk. Although there are closer accommodations, I really love my flat with its modern decor, large room, and social aspect of the shared kitchen.

Student

Verified

4/01/2023

On Campus

Experience at University of Birmingham

University of Birmingham has been an outstanding university. They have provided complete support during COVID-19. The university is incredible when accessing support with mental health. I currently study criminology at the university of Birmingham. The course has been brilliant, with constant support from lectures and tutors to ensure that you achieve the best grade possible. I could not recommend University of Birmingham more!

John

Verified

2/12/2022

On Campus

Cool

Great campus for studying with kind and professional staff and the campus is very well connected to the city center. There were so many people who wanted to enroll in the course that they had to queue for a new course for six months in advance. The classes were always crowded, but the professors never let anyone through. I love this uni

Mahoro

Verified

22/01/2024

On Campus

Excellent reputation

The University of Birmingham has a strong reputation for academic excellence and research output that is why I chose to study here. The university boasts a faculty of renowned experts and scholars in various fields who are supportive to students in their academic endeavors. Birmingham offers many opportunities for students to engage in cutting-edge research across multiple disciplines. The university additionally, has modern facilities and resources to support student learning and research. However, certain classes have large student-to-faculty ratios, making it more challenging to receive individualized attention. The cost of living in Birmingham, especially for international students, may be higher compared to other areas in the UK.

Student

Verified

15/03/2024

Online

Immersion into Legal Studies

As a law student, a common stereotype of a typical law degree would be long, boring classes fully based off theory and essays. while essays and theories are a necessary part of the law experience, the University of Birmingham Law School modules also cater to the more creative sides of the law. modules of creative writing, blogs, videography, podcasts, etc., are available. modules on makeshift court sessions to practice advocacy. deeper research on the law and its ethics, and using legal skills to tackle modern-day concerns such as artificial intelligence. not only do you gain the necessary tools that prepare you for the legal world. you also gain additional knowledge that puts you one step ahead and allows for flexibility after your studies.