By Shefali Kapadia

When pandemic-driven lockdowns sent consumers home, Frito-Lay adjusted its inventory to meet increasing demand for its products.

The snack brand temporarily culled about 21% of its SKU portfolio to keep its supply chain as efficient as possible and deliver its most in-demand products, said Laura Maxwell, senior vice president of supply chain for PepsiCo Foods North America. By last summer, SKU counts had returned close to pre-pandemic levels.

“I’ll be the first to admit, last year, when we simplified the portfolio, from a supply chain perspective, we love that,” Maxwell said in an interview. “That gave us a lot of efficiency and velocity throughout the supply chain”

Read on Supply Chain Dive.

By Shefali Kapadia

USA Truck, like many businesses, went fully remote for office operations last spring when the pandemic prompted large-scale shutdowns. The decision was straightforward for most companies, as they put staff safety above all else.

“When the pandemic hit … you have that ‘fight or flight’ button in your brain and say, ‘OK, what do we have to do to get through this?’” Nick Wakefield, vice president of human resources, driver recruiting and retention at USA Truck, said in an interview.

But the decision to bring staff back to the office is less black and white. Hybrid setups are a popular option, in which employees work some days from home and others days in the office.

Executives face myriad considerations in making this type of configuration work, from culture to safety to productivity. And the return to work is a high-stakes decision. Managers face the risk of employees quitting if they don’t offer remote or hybrid options. If variants of the virus emerge, the safety of staff working in close quarters could be in danger. Culture and engagement could suffer in a remote setup, ultimately leading to turnover issues.

The decision is particularly difficult for the transport sector, in which several types of jobs cannot be performed remotely. Employers that opt for a remote or hybrid setup for office workers must also consider the impacts on staff that cannot work from home, such as truck drivers and technicians.

USA Truck is in the process of its return-to-work planning, and managers are figuring out hybrid schedules for their teams after they saw many benefits of remote operations during the pandemic, Wakefield said.

“We’re actually finding employees are happier,” Wakefield said. “They’re growing and thriving.”

Continue reading on Trucking Dive.

By Shefali Kapadia and Matt Leonard

The growth spurt in consumer spending that began last summer carried over into 2021, with knock-on effects to supply chains. Freight demand led to hikes in transportation prices and warehouse rents, alongside dips in capacity. 

And near the end of the quarter, a global disruption occurred: The Ever Given became lodged in the Suez Canal. 

The charts below illustrate the story of supply chains in Q1 2021.

Read on Supply Chain Dive.

By Shefali Kapadia

Trade didn’t make it into the Biden administration’s seven immediate priorities. It’s not a subject where analysts and former trade representatives expect to see big moves or a flurry of activity.

But that hasn’t deterred newly-confirmed U.S. Trade Representative Katherine Tai.

“I don’t expect, if confirmed, to be put on the back burner at all,” Tai said at her confirmation hearing Feb. 25.

The Senate confirmed Tai to the cabinet position Wednesday on a vote of 98-0, after the Senate Finance Committee backed her unanimously.

Addressing China — from unfair trade practices to human rights abuses against Uyghurs — is a priority for the Biden administration, according to the president’s 2021 trade agenda. Tai is well-suited to lead that strategy, given her experience in the Office of the U.S. Trade Representative as Chief Counsel for China Trade Enforcement and litigating disputes on China export controls. Plus, she speaks fluent Mandarin.

“She’d be in a very good position to set priorities on what should be the changes to seek with China,” said Peter Allgeier, former deputy U.S. Trade Representative, prior to Tai’s confirmation.

Read on Supply Chain Dive.

By Shefali Kapadia

Interstate 495 is in clear view from the berths at the Port of Wilmington, Delaware. One traffic light and one turn is all it takes for trucks departing the port to reach the highway and haul their containers to dense population centers along the East Coast.

And running parallel to the interstate, railroad tracks host CSX and Norfolk Southern, providing direct freight rail connections to Chicago and other points east of the Mississippi River.

This central location is one of the prime reasons Amazon and Dole have long-standing histories in the Small Wonder’s largest city. When Amazon began building its fulfillment network in 1997, two locations made the list: Seattle and Wilmington. And the Port of Wilmington has been the mid-Atlantic hub for Dole and Chiquita since the 1980s.

The location offers close access to customers and labor but lower taxes and land prices than many of the surrounding markets, according to real estate experts.

Dole and Amazon are expanding their footprints in the first state. New infrastructure is going up at the Port of Wilmington. And Amazon is gearing up to move into a five-story fulfillment center currently under construction.

These moves are poised to boost the entire mid-Atlantic region with businesses seeking capacity and services to support their supply chains.

Continue reading on Supply Chain Dive.