The era of COVID-19 has now stretched to nearly two years, and it can be difficult to remember pre-pandemic realities. The past year brought plenty of changes, but one constant has been the retail industry’s commitment to serving its customers and communities.
The ongoing supply chain disruption in the US has been a defining narrative of 2021. Historically more of a behind-the-scenes workhorse, retail supply chains have spent the past several months in the national spotlight. This has motivated national interest both in solving current problems and in ensuring systemic, long-term issues are resolved to maintain economic growth and global competitiveness.
As historic levels of much-needed investment in roads, bridges, rail, and port infrastructure come to fruition, it’s essential that large shippers and users of infrastructure have a prominent voice in determining where funds are applied to maximize impact. The industry must also commit to strengthening data infrastructure and developing interoperable data standards that can enable the visibility and plannability necessary for today’s light-speed supply chains.
The Biden-Harris administration should continue bolstering the US Federal Maritime Commission’s (FMC) oversight of foreign-owned ocean carriers, alliances, and port terminal operators, sending the message that fair and open supply chains are essential to the American economy. Advancing the Ocean Shipping Reform Act of 2021 is a key aspect of this effort.
Leading retailers continue to flex exceptionally adaptable supply chain networks, operated by logistical ninjas who solve problems through collaboration with suppliers and service providers.
In 2022, retailers will need to navigate inflationary pressures, taking significant measures to manage costs and increase supply chain efficiency. As online retail sales remain strong — Adobe predicts annual US e-commerce sales will surpass $1 trillion for the first time in 2022 — large retailers will continue to optimize their networks to increase speed and flexibility.
Inventories remain below normal levels, and as retailers restock, many are trending away from lean, just-in-time philosophies. Forward-deployed distribution and fulfillment, located closer to the customer, will be enabled by increased automation and cutting-edge analytics.
Disruption will continue throughout 2022. Production setbacks, challenging labor shortages, soaring costs in all freight modes, constrained capacity, equipment dislocation, port congestion, and the various supply chain challenges that predate the pandemic will not be solved overnight.
Consumers can bet on retailers to remain resilient. Circumstances are always shifting, and retailers will keep adapting to deliver for their customers.