The Friday Report: June 10th, 2022

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

Coca-Cola Announces $1 million for Truck Driving Program in Georgia

The Technical College System of Georgia Foundation is set to receive a $1 million gift from The Coca-Cola Company. The investment will go to the school’s Commercial Truck Driving Program and is the company’s most recent effort in accelerating the commercial trucking industry in Georgia.

Coca-Cola believes that providing job training and teaching opportunities will help alleviate negative impacts felt on the community by Covid-19. Georgia has lost 6% of its drivers since the pandemic. In response, Coca-Cola is creating 11 full-time instructor roles and two part-time instructor roles. These roles will educate students for qualification to apply for one of the 85 open commercial trucking jobs currently available through Coca-Cola UNITED.

The state of Georgia has roughly 435 million tons of cargo travel through it each year by commercial truck. Coca-Cola states that it is committed to being a foundation for delivering essential goods and employment to help the nation’s economy improve. Georgia hopes to double commercial truck driver registration and put more drivers on the road.

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America’s Largest Container Ports are Least Efficient in the World

Global trade has suffered since Covid-19 and American efforts haven’t improved its performance. According to the World Bank and S&P Global Market Intelligence’s 2021 Container Port Performance Index, the largest ports in the U.S have ranked as the least efficient in the world. The ports in Long Beach and Los Angeles account for nearly 42% of US trade (by container) with East Asia and rank a dismal 369 and 370, out of 370-members. Savannah, Georgia was also in the bottom ten at number 367.

Over 80% of trade is ocean freight and Covid-19 has helped to showcase how much the infrastructure of US ports is lacking compared to other ports around the world. Experts say that US ports are well behind their Asian and European counterparts in modernization. Upgrades to their infrastructure have improved the cargo capacity of

non-American ports, giving them the advantage of operating 24-hrs. This can affect the flow of goods because cargo ships must wait once reaching the US, consequently slowing ports around the world.

Some US ports on the eastern coast are investing in their infrastructure, prompted by the Panama Canal expansion that allowed the largest container ships in the world better access to the Atlantic. Most recently the Port of Virginia, which ranked 23rd world’s most efficient, announced plans to become the deepest port on the East Coast.

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Fulfillment-From-Store Model Makes Sense Amidst E-Commerce Boom

The popularity of e-commerce has made one thing clear: faster delivery equals success. Prior to the pandemic, customers had to pay a premium amount for same-day and next-day delivery. Today, many companies offer same day deliver that is less expensive than one and two-day delivery. The pandemic caused many types of companies to rethink current standards and implement innovative strategies that would correlate with the increase of online purchases.

Target had previously invested in a decentralized operation model for online shopping in 2017. The fulfillment-from-store model improved the companies last-mile delivery effectiveness by delivering items to customers from their store network. Target also allowed customers to order online and pick up items directly from stores. This created a 90% reduction in shipping related costs, while same-day delivery by parcel carrier saw a 40% reduction. This model allowed Target to keep items off store shelves and its employees working.

The fulfillment-from-store model has borne collaboration post-pandemic as last-mile delivery sources and retailers have formed partnerships that have provided shoppers with improved service.

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