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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Retailers and Shippers Gearing Up for Christmas Demand

10/31/2021

This year has experienced increased demand as COVID restrictions are lifted. Concurrently a suppliers are faced with a shortage of workers, disruption in supply chains, congestion at ports and soaring costs for inland transport. In anticipation of the imbalance between supply and demand, major retailers and shippers have addressed deficiencies in their platforms and resources. 

 

Amazon is committed to maintaining the supply chain with optimizing safety, speed and efficiency.  Their intent is to “get customers what they want, when they want it, wherever they are this holiday season.” UPS has made similar claims and is determined not to repeat delays experienced in past years.  Target and Walmart are using third party delivery services but are also promoting in-store and curbside pickup linked to E-mail and text orders.

 

The extent of investment in facilities and human resources to supply anticipated demand is evidenced by a recent Amazon release.  The company announced hiring of 125,000 supply chain employees.  Their contribution will however be limited by lack of experience and the need for training.  The company has opened 250 new fulfillment centers including regional air hubs and delivery stations during 2021 requiring 100 new physical sites established in September.  Amazon, Walmart and Target have chartered vessels to ship products from Asia and are diverting container vessels to ports other than Los Angeles and Long Beach.  Amazon anticipates operating a fleet of over 80 aircraft for distribution in an attempt to match the capabilities of FedEx and UPS.

 

Improvements in service will depend on technology including updated inventory control systems ordering, tracking and final delivery.  It appears that Walmart may be benefiting from establishing in-house computer technology. Other retailers will benefit from acquisition of high-tech startups.

 

Progressive and successful U.S. businesses demonstrate flexibility, resourcefulness, planning and coordination at the expense of less efficient competitors.  Let us hope that with declining incidence rates of COVID due to higher rates of vaccination with restoration of our economy that the 2021 Christmas season will provide benefits to shareholders, consumers and workers through high demand for chicken and turkey products.


 
Copyright © 2022 Simon M. Shane