{"id":6139,"date":"2020-06-17T14:22:49","date_gmt":"2020-06-17T12:22:49","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=6139"},"modified":"2020-06-17T14:22:49","modified_gmt":"2020-06-17T12:22:49","slug":"home-delivery-supply-chain","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/06\/17\/home-delivery-supply-chain\/","title":{"rendered":"The Strain & the Opportunity for the Home Delivery Supply Chain"},"content":{"rendered":"

Home delivery of essential goods and services sounds good at the moment, right? While much of the country is under a stay-at-home order due to the COVID-19 pandemic, it\u2019s no surprise that home delivery demand and e-commerce sales have increased by over a third in recent<\/a> days, which is well above expected pace.<\/span><\/p>\n

With online orders skyrocketing, many of the world\u2019s largest retailers and logistics companies are struggling to meet the delivery demand. FedEx and UPS have both canceled their shipping guarantees, and according to Fast Company<\/a>, Amazon announced the suspension of their third-party delivery so they can put all of their attention on the shipment of their own goods. Online orders of non-essential items are seeing delivery dates of weeks, while essential items are taking days to arrive.<\/span><\/p>\n

With the home delivery demand of goods and services continuing to rise, will the supply chain and strained delivery systems be able to keep up?\u00a0 What do supply chain professionals need to consider and understand about the bottlenecks that are preventing timely delivery and what can be done to keep last mile moving?<\/span><\/p>\n

The Clog in the Delivery Pipeline<\/span><\/h2>\n

Several factors make up the home delivery supply chain, not just high order volumes. Amid a global pandemic, lack of drivers, health and safety also contribute toward the blocks taking place in the home delivery channels.<\/span><\/p>\n

Truck Driver Shortages<\/span><\/h3>\n

The last mile industry is no stranger to truck driver shortages, pre\u2013COVID-19, the industry was experiencing a truck driver shortage of an estimated 1.1 million<\/a> over the next decade. With the increase of online orders putting added stress on shipping and delivery, the coronavirus is creating a greater shortage on an already burdened profession. DMV and commercial truck training locations are closed across the country, abandoning the requests by many to deem both as essential businesses to keep America moving. The closures have quickly stopped between 25,000 and 40,000<\/a> new truck drivers from getting on the road.<\/span><\/p>\n

Driver Health and Safety<\/span><\/h3>\n

All delivery drivers are deemed essential and for some that could mean driving across the country while handling goods from around the world, putting drivers and their loved ones at higher risk of exposure to COVID-19.\u00a0 While there are protocols in place, they are not mandatory and despite the risk, not all are going to follow the recommended guidelines.\u00a0 Of the almost 2 million truck drivers in America, more than 20%<\/a> are owner-operators, meaning contracting COVID-19 could be financially crippling with the lack of health insurance or paid sick time.<\/span><\/p>\n

Panic Buying<\/span><\/h3>\n

We have all seen the toilet paper shortage that is taking place, in fact, I still cannot find toilet paper in a local market. Panic buying burdens the funnels of the supply chain, ultimately affecting the last step of the supply chain \u2013 home delivery.\u00a0 Home delivery having already been impacted by the shortage of drivers, becomes even more drained with excessive online orders and impulse buys that lead to large, multiple shipments to some and due to shortages, sparse and delayed shipments to others.<\/span><\/p>\n

Where Are all the Vehicles?<\/span><\/h3>\n

Even if we solve the driver shortage, will drivers be able to get a vehicle? \u00a0With the majority of automobile manufacturers having announced temporary closures<\/a> of their plants, we are going to experience a delay in automobile production.\u00a0 The problem is, although some plants might be running, the chances the facilities they receive their parts from is also running \u2013 is rare. In due course, this will lead to a vehicle ordering shortage, as well as a delay in the availability of the 2021 automotive releases.<\/span><\/p>\n

3 Ways to Combat These Challenges Now<\/span><\/h2>\n

Stabilize the Supply Chain<\/span><\/h3>\n

With extreme demand on products and production, drivers cannot do their jobs efficiently. The coronavirus has been a wake-up call to supply chain management, highlighting the areas of the supply chain that were not prepared for this pandemic.\u00a0 While the lessons learned can be beneficial on preparing for possible future events, it is not helpful in outlining what can be done now to normalize and move forward. Here are 3 things a supply chain can do now to help decrease the impact on home delivery.<\/span><\/p>\n