The Friday Report: February 26th, 2021

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

DHL Pilots Drive-Up Mobile Pop-Up Retail Store in Response to Social Distancing Concerns 

The global COVID-19 pandemic has given rise to numerous innovations.  Industry leader DHL announced recently that it had opened a 2,200 cubic foot drive up mobile pop-up retail store in Woodbridge, Virginia, near Washington, D.C.  Designed for convenience and ease-of-use, DHL ServicePoint includes a drive-up window to minimize contact with the public.  Now customers can take advantage of DHL service and complete all transactions without having to leave their vehicles. 

The site was selected due to the unprecedented increase in international shipping in the respective geographic area.  Customers can buy supplies including bubble wrap, packing tape and DHL-branded packaging and use the point-of-sale system to process shipments within the United States or so any of the 220 countries and territories served by DHL. 

For more information, please continue reading here. 

Supply Chain Issues Delay Texas Storm Recovery 

Firstthe ice and snow in record-low temperatures made roads impassable.  Then the Texas electric grid operator lost control of the power supply for the state. With widespread power outages, water pipes burst in the cold weather and water heaters were damaged.  To fix these problems, not only does Texas need an influx of plumbers and other skilled trade workers but also the parts and materials needed to fix the problems. 

Parts are in short supply.  This is partially because many of the manufacturers that make pipes, parts and tools needed for the repairs had cut back production because of the COVID-19 pandemic.  This started the strain on the supply chain in Texas.  Many distributors of plumbing and other parts and materials needed for typical repairs have also been experiencing delays in shipments.  The enormous demand for both products and services is causing problems for businesses as well.  

For more information, please continue reading here. 

Continued Supply Chain Disruptions Forecast for Retailers in 2021 

The stockpiling of goods before the holidayssurge in goods from appliances to electronics and shortage of air freight capacity has led to significant congestion at U.S. ports.  Consequently, the problem of a lack of empty containers and the necessary equipment required to haul goods away from port facilities is aiding in the build-up of congestion at ports and across the supply chain. 

The cycle continues:  demand for products increases so production ensues.  Air freight capacity remains low as this is related to passenger air travel so goods are stuck in the supply chain.  As recently as late January, 2021, 34 container ships mainly from Asia were anchored off the ports of Long Beach and Los Angeles Californiawaiting to be unloaded.  The backlog at the ports is especially problematic for retailers with global supply chains.  Walmart had noted this problem in mid-November 2020, advising of its concern about shortages of products that require aluminum cans and packaging in addition to bath tissue and cleaning supplies. 

For more information, please continue reading here. 

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