Supply Chain Updates

Stay up-to-date with news and information related to the novel coronavirus and the impact on supply chain.

News and Resources

June 29, 2020

A cash cliff spells trouble for U.S. unemployed, and everyone else

Millions of Americans face a cash cliff this summer as emergency benefits — which lifted U.S. consumer incomes by a record 10.8% in April — expire. The loss of that safety net looms well before a sustained recovery is likely to take hold from the sudden and deep recession brought on by COVID-19.
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June 26, 2020

UPS lowers peak surcharge on China-US shipments starting Sunday

UPS will reduce the peak surcharge on air shipments from mainland China to the U.S., according to a notice on UPS' website. The lower surcharge amount takes effect Sunday and remains in place until further notice.
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June 24, 2020

Here's How Walmart is Placed Amid the Rising E-commerce Rage

The novel coronavirus and the resultant social distancing have largely altered consumer spending patterns. This is where the e-commerce initiatives of supermarket players come into play and it is impressive to note that Walmart Inc. WMT stands quite strong in this respect.
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June 24, 2020

Back to school? Maybe

The usual end-of-school euphoria went missing this year, as the COVID-19 pandemic sent students home to complete the semester virtually. As summer rolls on, the COVID-19 pandemic promises to interfere with one of retail's most important shopping seasons.
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June 22, 2020 Marketplace Seller Numbers Spike

More brands joined the Walmart marketplace last week than ever before, setting a record for new sellers added in a week. The partnership with Shopify, announced on June 15th, was mostly why more than 1,100 new sellers joined the marketplace.
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June 19, 2020

Most shoppers plan to keep loading their pantries, survey finds

According to a survey by PwC, COVID-19 and the recession are driving changes in shopper behavior. 42% of consumers say they won't stop loading their pantries until COVID-19 is fully resolved, and 64% will continue to maintain their current rate of pantry loading for the foreseeable future.
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Download your free report on How COVID-19 has Affected Consumers' Habits, and learn how this global pandemic has affected supply chains across the world, as well as consumers' behavior inside of the United States.
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Expert Answers

5 Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain

1. Replenishable Instock %

Replenishable instock shows the percentage of stores that currently have inventory vs. stores that should have inventory. In general, suppliers should try to keep this above the 98.5% goal. Due to panic buying and increased demand, many CPGs are slipping below this goal.

2. Forecast and Forecast Variance

To keep up with the current volatility, retailers are tweaking the "event forecast" frequently. It's a good idea to check your forecast multiple times throughout the week.

3. Supply Plan

The Supply Plan metric provides Walmart's best guess on how many units they expect to order from a supplier. If this isn’t something you normally utilize, this is a great time to start as it will help you plan for increased demand. Don’t get surprised with an order for 10,000 units when they normally order only 1,000 per week.

4. Deductions due to Partial POs

Walmart deductions can quickly add up and become overwhelming. While supply is low, CPGs will want to make sure they are not sending partial Purchase Orders while invoicing Walmart for the full PO amount. As a best practice, it is recommended that you request an updated PO for the amount you are currently able to fill.

5. Prepaid on Time % and In Full

If your supply chain is struggling to keep up with orders, it’s a good idea to pay extra attention to your OTIF scores. If you’re not able to keep up with demand, be sure that you are editing or cancelling PO lines with the correct reason codes to avoid OTIF accountability.

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