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Mar 27, 2023 • 12min
RoundTable: The effect of inflation on freight and the government
Randy Mullett - Senior Advisor - Immaginovate - Washington DC
Loren Smith - President - Skyline Policy Risk Group - Manassas, VA
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Mar 27, 2023 • 9min
Examining CPG Supply Chains
Paula Hise - Sr. Vice President, Consumer Packaged Goods - Kenco - Chattanooga, TN
Key trends include:
Receding order volumes, increased distribution costs, and labor shortages
During COVID, order volumes for consumer packaged goods increased. Now, orders are receding.
Today it costs more to ship the same product, and much of that increase is attributed to rising labor costs as wages are increased to retain employees during today’s labor shortage.
Raising product prices will not help offset higher shipping costs because most consumer packaged goods are consumables with low brand loyalty among consumers. If prices go up, consumers will simply flip to another brand.
Many of the major labor shortages in the CPG supply chain are apparent in these roles across the industry:
Forklift operators
White collar jobs that support warehousing and distribution, such as specialty roles in quality, regulatory and compliance.
Business analysts
Engineers
Too much warehouse space and equipment: Again, because order volumes are down, many companies have too much warehouse space and equipment. Kenco is also helping customers find other companies to take over those commitments or redeploy the equipment somewhere else.
To help CPG providers manage the labor shortage and reduce their shipping costs, Kenco recommends that they:
Use technology to make sure that the labor is as efficient as possible. For example, automation can reduce reliance on labor, and also help the labor we do have more easily manage their tasks.
Offer flexibility. Flexible work hours are key, especially with more millennial and Gen Z employees entering the workforce. These generations do not want to be tied down to a 9-5 in the office every day or be unable to easily swap shifts. Kenco has introduced an app called Shift Swap, which allows our employees to put their shifts up for bid and swap and trade shifts with one another. This has increased our retention rate as employees are able to make all of their shifts.
Engage employees. Much of the turnover for employees across many industries comes in their first 12 months of employment. At Kenco, we know that if we can offer a positive, engaging work environment during that first year, our employees are happy to work with us for years. We have a first year experience program in which our leadership and management teams make sure that they're doing regular check-ins with their direct reports.
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Mar 27, 2023 • 6min
3rd Carrier Update - 03/27/2023
Omaha reefer market looks promising
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Mar 27, 2023 • 10min
Sugar Reduction Solution in The Stockout
Mike Baudendistel - Head of Intermodal Solutions - FreightWaves - Dallas, TX
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Mar 27, 2023 • 6min
2nd Carrier Update - 03/27/2023
Reefer freight volumes rebound to 1341.19 index points, rejection rates remain below 4%
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Mar 27, 2023 • 9min
Recapping ProMat last week in Chicago
Jack Daleo - Staff Writer - FreightWaves - Brooklyn NY
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Mar 27, 2023 • 6min
1st Carrier Update - 03/27/2023
Diesel fuel prices fall to 4.29 cpg
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Mar 27, 2023 • 9min
Milwaukee group looking to turn air force base into air cargo hub and FedEx moving out of LAX and into Indianapolis
Eric Kulisch - Air Cargo Editor - FreightWaves - Vancouver, WA
What is the play here?
Is this feasible?
Is this legitimate - could they pull this off?
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Mar 24, 2023 • 5min
4th Carrier Update - 03/24/2023
Lanes of the Day
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Mar 24, 2023 • 13min
Roundtable - 03/24/2023
Why some big transportation companies have hit some turmoil
Bill Priestley - Producer - FreightWaves - Chattanooga, TN
Tony Mulvey - Senior Analyst - FreightWaves - Chattanooga, TN
Mark Solomon - Senior Staff Writer - FreightWaves - Atlanta, GA
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