President Joe Biden spoke with chief executives from Walmart, Target, UPS and FedEx on Tuesday (Nov. 9) in an effort to get more merchandise moving faster, as snarled supply chains and shipping delays continue to concern retailers, consumers and others as the holidays approach.
Illustrating the perfect storm of supply and cost issues, on Wednesday (Nov. 10) the U.S. Bureau of Labor Statistics said inflation has hit a 30-year high, rising at an annual rate of 6.2%.
On that news, Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives, told The Wall Street Journal, “I do think we’re moving into a new phase where inflation is broader and where things are going to get a little more intense. Part of that reflects that [supply-chain] bottlenecks are not resolved going into the holiday season, when a lot of purchases get made, and that the economy is doing really well, so you have strong demand.”
After his round of calls, Biden posted a video to Twitter calling the CEOs he spoke with “confident” in their outlook, saying “the expectation is it’s not going to be like this time last year,” adding that by Thanksgiving, people “will be able to get the product you need [and] the gifts you want.”
I know folks are concerned about getting what they need for the upcoming holidays. That’s why I spent the afternoon on the phone with the CEOs of America’s largest retailers. Here’s what we talked about: pic.twitter.com/JMKtWxr6Kr
— President Biden (@POTUS) November 10, 2021
Reporting on those conversations, Reuters said that “shortages have helped lift consumer prices by 5.4% over the 12 months through September, according to the U.S. Labor Department. Due to inflation, most workers’ real hourly wages sagged 0.8% over the same timeframe.”
Biden’s confab with major retailers and logistics firms builds on meetings the administration held with port officials and labor leaders in October addressing clogged shipping sites.
While there’s a sense that such efforts will go only so far to relieve shortages this year, some developments show that global logistics firms are seeking new tech solutions to the problem.
Executives on PYMNTS’ recent “Moving Payments Across Supply Chains” panel — including TruckPay President and CEO Barry Honig, YayPay CEO Anthony Venus and Fiserv Senior Vice President and Head of Global Enterprise Solutions David Ades — agreed that snags are “also an invitation for continued innovation in any technology that can help reduce frictions, expedite global trade or improve cash flow.”
See also: Experts Say Supply Chain Challenges Spur New Digital Payments Innovations
Taking a Connected Approach to the Supply Chain
Meanwhile, more global logistics firms are making moves to build out a connected economy supply chain using advanced tech to make the system more resilient to shocks like COVID.
On Tuesday (Nov. 9), Performance Team, the warehousing and distribution company owned by shipping giant A.P. Moller – Maersk, signed an agreement with the Massachusetts Institute of Technology’s Center for Transportation & Logistics (MIT CTL) on supply chain innovation.
In a statement, the partners said that senior researchers from MIT CTL will work closely with Performance Team leadership “to co-create solutions through design thinking, industry expertise, machine learning, AI, predictive analytics, new algorithms and computational prototypes, amongst other activities. This deeper integration will improve flexibility and customer-centricity to ultimately deliver value to … customers.”
Maersk also acquired e-fulfillment and parcel delivery firm Visible SCM in August, saying it is “building an asset-light, global business focused on two core capabilities: B2C fulfillment and B2C delivery, based on a strong and flexible eCommerce technology backbone.”
This aligns with efforts on the retail side to improve distribution via automation. In October, PYMNTS reported on Walmart’s plans to automate its distribution network.
In a statement, Walmart U.S Senior Vice President of Automation and Innovation David Guggina said: “Walmart’s high-tech grocery distribution center will include game-changing innovations that are radically disrupting the supply chain, getting products onto shelves for our customers even faster, while saving time for our associates.”
Also see: Grocers Aim to Escape eCommerce Labor Bind With Automated Fulfillment
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