The top supply chain news recently, according to PorterLogic
Hey folks, welcome to our round-up of (what we think are) the top supply chain news bits recently. As always, there's a lot going on, so let's get started.
LABOR NEGOTIATIONS
Threat of possible UPS strike lingers with a deadline
What can Brown do for you? UPS might soon not be at your service as its workers threaten to walk off the job.
Members voted 97% in favor of authorizing a strike, allowing the UPS Teamsters National Negotiating Committee to call a strike if an agreement isn’t reached by July 31.
If the labor action happens, it would be the biggest strike against a single employer in U.S. history, with much more than just your drop-shipping dreams at stake.
What’s the scale of this possibility?
📦 UPS is the largest shipping service in the nation, according to CNN, moving enough goods to account for about 6% of the US GDP, per the company’s own estimates.
📦 Senders would need to find an alternative delivery method for 24 million packages (about a quarter of all packages nationwide) that UPS delivers daily, per global shipping and logistics firm Pitney Bowes.
Analysts say that companies are already shifting orders to other shipping providers like FedEx and DHL, though no single entity could handle all its packages. But the logistics chaos can still be averted if UPS drivers and warehouse workers reach an agreement with their bosses.
OUR INSIGHTS: Most folks we’re talking to are confident a deal will be reached…even if that takes having officials stepping in to aid the negotiations. There’s no question a work stoppage for UPS would be catastrophic for many shippers, and it’s not surprising that larger brands are already putting contingency plans in action.
But just like the debt ceiling deal we saw come together at the 11th hour early this year, it seems like most people anticipate a deal will emerge by the end of the month.
INVENTORY
Why inventory management is so important for retailers
There are three words no shopper wants to hear: “Out of stock.” For retailers, it likely means a missed sale, so no one’s happy.
That’s why inventory management is such a key component of running any retail business. After all, in 2021, 7.4% of retail sales were not realized due to out-of-stock items, which cost retailers $82 billion, per NielsenIQ data.
Retail inventory management is complicated; there’s not a one-size-fits-all solution. But being able to meet consumer demand while simultaneously not leaving too much merchandise on the shelf pays off in the long term.
Grocery and CPG industries present different inventory management challenges. Grocery stores and CPG brands must consider factors like shelf life, temperature zones, kitting and packaging to minimize waste and increase operational efficiency.
OUR INSIGHTS: No one wants moldy cucumbers in their warehouse. Inventory management is a critical capability for all companies that sell goods (especially for food brands) because you can’t grow revenue if you’re missing sales due to out of stocks. Inventory management can help you solve this, in turn, helping you generate more revenue.
Because that’s what we all want: more revenue; operational efficiencies; fresh cucumbers.
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QUICK HITS: FULFILLMENT EDITION
📦 Walmart plans to open its first owned and operated case-ready beef facility in 2025 as part of the retail giant’s ongoing efforts to build out an end-to-end Angus beef supply chain.
📦 Walmart celebrated the grand opening of its largest fulfillment center to date (2.2 million-square-feet) in Indiana.
📦 Chewy added a fourth automated fulfillment center in Tennessee to its growing network this quarter as part of the pet retailer’s larger goal to shorten shipping distances and curb costs.
📦 Duluth Trading Company’s planned Southeast fulfillment center will handle more than half of its direct-to-consumer orders during the peak holiday season. The Adairsville, Georgia, facility is slated to go live in Q3 as the workwear retailer’s first automated fulfillment center.
PRODUCT NEWS
PorterLogic Releases Product Update V3
Want an enhanced UX and powerful low-code capabilities? Meet PorterLogic’s Felucia release.
Here are some key features in this release:
✨ Document management
✨ Single barcode login for associates
✨ Enhanced multi-tenant management
✨ Infrastructure and scalability improvements
✨ General usability improvements and bug fixes
Want more details? Read the product release.
FEATURED CONTENT
Imagine knowing exactly which capabilities and systems are necessary for your supply chain to ensure your product is delivered with speed.
In this content series, Jonathan, our founder and CEO, dives into the essential supply chain capabilities you need when customers click “buy.”
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