Supply Chain and Logistics

As the pandemic raged and basic goods went missing from our favorite stores’ shelves, the supply chain links involved in getting a product from point A to point Z were illuminated. And, turns out, one of the most imperative is truck transportation. Yet, given the job’s demands and workforce demographics, the trucking industry was already experiencing a decline in drivers. The pandemic compounded this trend, while creating a marked increase in e-commerce and home-delivered goods. As a result, the last two years have seen companies lose even more long-haul truckers. But one big-box giant is changing that.

This April, Walmart raised salaries for first-year truckers to between $95,000 and $110,000 annually.

The average American trucker’s salary is about $56,491. Walmart, already known for paying its truckers better than average, is nearly doubling that. But will other large retailers follow suit? Moreover, is the importance of a well-linked supply chain changing the way companies think—not only about truckers, but about all employees involved in getting goods from the manufacturer to seller to end-user?

Wage increases, across the supply-chain employee spectrum, suggest the answer is “yes.”

According to Material Handling & Logistics News, 59 percent of supply chain workers received a salary increase during the pandemic. And the trend isn’t limited to the U.S.

In Britain, for example, a recent survey shows that truckers and dock workers have become more appreciated by the general public than teachers or the police. Commenting on the survey’s results, Tim Morris, Chief Executive of the UK Major Ports Group, said, “More of the public have also woken up to the complex, sophisticated supply chains that deliver our just-in-time lives and businesses.” (Source: Financial Times)

And this appreciation isn’t just a matter of words. In 2021, British truck drivers’ salaries rose—some by as much as 40 percent overnight, according to a BBC article.

 

While Brexit has factored into the loss of truckers in the U.K., other reasons cited match those here in the U.S., including an aging workforce entering retirement, relatively low wages, workers pivoting to less-grueling industries, and COVID-19-related concerns—all in addition to the exhausting nature of the job, itself.

Back in the U.S., supply-chain staffing woes may get worse before they get better. For example, as West Coast union dock workers’ contracts move toward June expiration, the possibility of strike looms. Relatively well paid by standards typically attributed to “blue collar” jobs, longshore workers cite the dangers associated with their work and the huge profits made by the companies whose goods they move.

With both dock workers and truckers willing to leave their jobs, might Walmart’s move to raise its truck drivers’ wages signal a new value applied to supply chain workers at large?

Jonathan Starks, chief intelligence officer at FTR Transportation Intelligence, thinks so. In a multi-published statement, Starks said it was “likely other firms would follow Walmart’s approach to lift pay for drivers, including for-hire carriers . . .” (Source: Financial Times)

As for Walmart, not only are they looking to hire truck drivers, they’re also looking to keep them.

Those ways aren’t yet clear, but one thing is: All organizations that rely on supply chain workers will need to step up their recruitment and retention offerings.

Tony Lopez, Vice President of Manufacturing and Logistics Services for PRIDE Industries, concurs.

“Companies are having to look at industry-competitive compensation in real-time, to stay ahead of the curve, or risk losing applicants,” said Lopez. “They also risk losing their existing workforces to companies that pay more—and are right around the corner.”

Interested in partnering with PRIDE Industries to help your business?

“More of the public have also woken up to the complex, sophisticated supply chains that deliver our just-in-time lives and businesses.”

(Source: Financial Times)

Neck Nosh Finds a Flexible Workforce with PRIDE Industries

Neck Nosh is a Sacramento-based manufacturer of pretzel necklaces worn at festivals, concerts, and outdoor events. This “foodie-fun” company’s necklaces have found their way to brewfests, from California to Florida. Erica Humphrey, the company’s owner, seeks to make Neck Nosh a “social purpose business.” 

Situation

Due to both COVID-related worker shortages and the seasonal nature of Neck Nosh’s workload, the edible-necklace company needed a flexible, reliable workforce to build its product. Moreover, with long-term experience working with people of diverse abilities, Neck Nosh’s founder specifically sought to hire an inclusive workforce. Seeking a partner with a similar mission, Neck Nosh turned to PRIDE Industries to provide staffing solutions. 

Solution

PRIDE Industries provided a flexible, reliable workforce to Neck Nosh, consisting of five employees—three with documented disabilities and one PRIDE Industries job coach. These employees make between 2,000 and 3,000 pretzel necklaces per month—95% of Neck Nosh’s production—allowing the company’s owner to focus on running the business. The consistency of PRIDE Industries’ workforce has also allowed Neck Nosh the time and forethought to streamline their processes. 

Services Provided

  • Pretzel necklace building
  • 5 employees, 3 with a disability
  • Recruiting 

Results

  • 2,000 to 3,000 necklaces made per month 
  • Flexible workforce has provided business stability 
  • Skilled and reliable employees with low turnover 
  • Meeting of Neck Nosh’s goal for a diverse and inclusive workforce 
Neck Nosh logo

Highlights

60%
employees with documented disability
3,000
necklaces made per month

“I can't stress enough how important PRIDE Industries’ reliable workforce is and how much stability that has given my business.”

From labeling laws to refillable containers, sustainability continues to impact the way packagers do business. We’ve looked to the experts, gleaned their expertise, and compiled our picks—packaging trends to look for in the coming year.

Trend # 1: More laws like California’s “Truth in Labeling” will be passed.

Last year, California passed an unprecedented Truth in Labeling for Recyclable Materials law. A similar New Jersey bill was passed into law this January, and New York is expected to follow suit with a bill already on its books. Until now, there has been no enforceable federal standard when it comes to displaying the “chasing arrows” on labels and packaging materials. Expect this to change, country-wide, in the coming years.

Trend # 2: Extended producer responsibility (EPR) will gain more traction.

A concept that sees manufacturers bearing responsibility for the long-term environmental impacts of their products, extended producer responsibility has long been the norm in Canada and Europe—with other countries soon to follow suit. Here in the U.S., with the passage of EPR laws in Oregon and Maine, this level of product stewardship and environmental responsibility is destined to become the standard.

Trend # 3: More companies will commit to removing toxins from their packaging.

From McDonald’s to Home Depot to Amazon, a growing number of companies are phasing out polyfluoroalkyl substances (or PFAS) from their packaging products. With mounting evidence that these, and other chemicals, are finding their way into drinking water, regulatory agencies and consumers are demanding their elimination. An increase in public awareness, regarding both the environment and social equity, is also normalizing this trend.

Trend # 4: Sustainable packaging practices will become more holistic.

The sustainable packaging conversation will shift beyond recyclability—and more toward “low impact.” This means that greater attention will be paid to the front end of a product’s life cycle. Responsible companies will source materials whose environmental impact is low to begin with. Looking to the future, sustainable packaging will factor in smaller containers, plant-based packaging and inks, and lower impact manufacturing processes.

Trend # 5: The use of reusable, refillable containers will continue to grow.

With major organizations like PepsiCo and PG&E supporting returnable, reusable packaging, this trend will continue to expand. Already, from the US to Canada; Europe to Brazil, wholesalers are requesting that retailers bring in containers and have them filled. Even in the realm of e-commerce, waste-free services like Olive and Loop are already revolutionizing the packaging industry. Expect to see more brands embrace this approach in the coming year.

Flexible packaging services

Find out how we can create a turnkey packaging and distribution plan suited to your specific needs.

California’s largest packing event, WestPack has continually united the entire packaging community to find the most creative packaging solutions and efficient automation systems.

American Packaging Summit
June 2-3, 2022
Westin Chicago Lombard, Chicago IL

Join packaging executives to catch up with current trends, strategic insights, and best practices in packaging innovation, design, materials, and branding.

The industry-defining conference and exhibition for last-mile logistics in the U.S. and abroad.

Exchange state-of-the-art knowledge in research, development, manufacturing, and applications of electronics packaging and heterogeneous integration.

Check out the latest products and technologies, including containers, contract services, custom automation, equipment and components, machinery and machinery components, and materials.

Flexible packaging services

Find out how we can create a turnkey packaging and distribution plan suited to your specific needs.

America is Getting Fit with the Help of PRIDE Industries

Heart Zones is a pioneer in the field of science-based heart rate training programs and devices. Founded by Sal Edwards and headquartered in Sacramento, Calif, Heart Zones sells wearable technology, including the Blink Armband ™, a lightweight heart rate monitor that converts data into individualized, actionable exercise prescriptions.

Situation

When Heart Zones wanted to reshore assembly and packaging services for the Blink Armband ™, they immediately thought of PRIDE Industries. Back in 1990, PRIDE Industries had successfully manufactured Sal Edwards’s Fleet-Feet branded snowshoes. So, when Heart Zones ran up against an irregular order pattern for their armband, necessitating an agile supply chain, Sal knew PRIDE Industries would be able to do it all—with an emphasis on quality control.

Solution

The PRIDE Industries manufacturing team was able and equipped to address Heart Zone’s needs from start to finish, assembling the Blink Armband ™, buying the raw goods, cutting, packaging, and even storing Heart Zones’ parts and products on-site in the U.S. as opposed to overseas. This holistic approach allowed Heart Zones to maintain an agile supply chain and focus on doing what they do best: get their product to market.

Services Provided

  • Raw goods purchasing
  • Cutting and Assembly
  • Component Building
  • Packaging
  • Storing Inventory for Heart Zones
  • Employs 10 People with Disabilities
  • Between 2M and 3M in Sales Annually
heart zones logo

Highlights

$2-3M
in sales annually
10

people with disabilities employed

“How they build things and how they think through it and their willingness to support—We’re thrilled to work with a company that’s headquartered near us, that supports our community, and that can make a quality product.”

Supply Chain is now a household name

Last year, as grocery store and retail shelves went empty, “supply chain” became a household name. In 2022, this new level of visibility will influence the way supply chain and logistics managers approach their jobs. We’ve looked to the experts and, from their wealth of knowledge, compiled our picks—trends to look for in the coming year.

Trend #1: Recruiting will become more strategic.

A simple job posting isn’t enough to attract qualified candidates anymore. To find outstanding talent, hiring teams must be innovative.

  • Consider forging relationships with supply chain organizations, like APICS or CSCMP.
  • Why not partner with colleges that feature supply-chain-related degree programs?
  • Or how about advertising on a niche job board like supplychaincareers.com?
  • Start weighing the benefits of transferrable skills.
  • Create internships and make them available through local colleges and job centers.
  • Be forward thinking when it comes to recruiting qualified talent. This means reviewing your plans for targeted hiring, compensation planning, and retention strategies.

Trend #2: Supply chain agility will be an advantage.

To satisfy customer expectations and remain competitive, an agile supply chain will enable you to quickly react to delays and changes. Steps to boost your agility include:

  • A greater emphasis on risk management
  • Increased end-to-end visibility
  • Physical changes to the supply-chain footprint
  • Diversifying inventory storage
  • Automation of order processing and shipping
  • Data-driven decision making

Trend #3: ESG and sustainability practices will be imperative.

Since the early 2000s, stakeholders and consumers have looked to companies that proactively address environmental and social concerns. The pandemic accelerated this trend, moving sustainability from “good to do” to “imperative.” In 2022, this will include an increased emphasis on supply chain transparency, including:

  • How was a product sourced, handled, shipped, and delivered?
  • Were the manufacturing processes ethical?
  • Did they impact the environment?

Sustainability is now essential in creating supply chain processes, and all enterprises will eventually need to create programs to address these concerns.

Trend #4: The use of artificial intelligence (AI) and Internet of Things (IoT) technologies will continue.

AI and IoT technologies are on the rise, with AI playing a growing role in IoT applications and deployments. Able to perform tasks previously done only by human hands, these technologies have been especially useful in addressing the global worker shortage of the last two years. Major providers now offer integrated AI capabilities, such as machine learning-based analytics. The value of AI in this context is its ability to quickly wring insights from data.

Trend #5: Reverse logistics will play a critical role.

As online sales increase, the need for a robust reverse logistics process is imperative. This service directly supports all circular economy initiatives. Besides enhancing sustainability, a solid reverse logistics strategy and reuse offering will improve customer loyalty. It will also reduce cost, retain revenue, and allow for growth opportunities and custom integrations.

 

As fallout from the pandemic continues, savvy supply chain leaders will continue to keep an eye on trends, adapting and innovating as they look toward the future.

Ready to take your supply chain and logistics processes to the next level?

Partner with PRIDE Industries to streamline your operations, drive customer satisfaction, and improve your bottom line.