The Friday Report: February 12th, 2021Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry
Need for E-Commerce Professionals Escalates
In the LinkedIn’s Jobs on the Rise report, frontline e-commerce roles grew by approximately 73% between April and October 2020. This is the highest year-over-year growth period on record. As of January 15th, 2021, there were over 400,000 jobs open.
Retailers and logistics companies are in significant need of workers to ensure the seamless flow of orders through fulfillment and delivery to customers. The supply chain was greatly impacted in 2020 and companies across the supply chain have been forced to make many changes.
According to the ISM Manufacturing Business Survey for December 2020, supplier deliveries faced delays often due to labor availability. This is partially due to difficulties that manufacturers face in attracting and retaining workers.
The most needed jobs include:
- Supply chain associate
- Package handler
- Personal shoppers
Production of Chlorox Wipes to Double by Year End
Despite its expanded manufacturing capabilities, Chlorox has found it challenging to keep up with the tremendous demand for its wipes. The company typically finds that its customers maintain a one month supply of Chlorox Wipes at home and its disinfectant spray has faced similar demand.
Last year, Chlorox overhauled its wipe supply chain to facilitate the ramp up the supply of this popular product. Initially, the effort involved expanding supply chain capacity so that the in-stock performance of its inventory could be improved. To do this meant that Chlorox had to increase the number of its suppliers as well as its manufacturing capacity. Part of this challenge was remedied by bringing on contract manufacturers.
Chlorox currently sells its products in more than 100 countries, yet its disinfectant wipes are not prevalent. Separate supply chains have already been established for the sale of wipes internationally. In a move popular with other CPG companies, Chlorox plans to continue its focus on fewer SKUs, instead targeting higher selling items.
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U.S. Government Plans to Address Critical Semiconductor Chip Shortage
Numerous efforts are currently underway to remedy the global semiconductor shortage that is at the center of the halts in production in a variety of U.S. industries including automobiles.
Here are some of the actions being undertaken:
- Evaluation and study of choke points in supply chains.
- Discussions with businesses and trading partners to determine an immediate path forward.
- Development of a comprehensive strategy to avoid or eliminate bottlenecks and other issues in the semiconductor industry.
- Release of a Presidential executive order to direct a government-wide review of the supply chain of critical goods. The order is anticipated to mandate a 100-day review by the National Economic Council and National Security Council, focused on semiconductor manufacturing, advanced packaging, critical minerals, medical supplies and high-capacity batteries commonly used in electric vehicles.
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