EconWorks Podcast

How Supply Chains Raise Prices


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Independent supermarkets in New York City are facing a new competitive threat, but it isn’t coming from the “big box” stores—it’s coming from the supply chain.

When manufacturers like Mondelēz International discontinue Direct-Store-Delivery (DSD), they don’t just change a shipping route; they change the economic viability of small retailers. In this episode, we break down how the loss of manufacturer-provided logistics increases the marginal costs for independent grocers, potentially leading to higher retail prices and fewer neighborhood options.

We explore:

* The economics of vertically integrated vs. independent supply chains.

* How “price-free” service changes can weaken market competition.

* The legal landscape surrounding the Robinson–Patman Act and its implications for discriminatory logistics.

For a complete article and illustration of this case, go to:

#Antitrust #SupplyChain #NYC #Mondelez #RobinsonPatman #Economics #GroceryNews #EconWorks



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EconWorks PodcastBy EconWorks