Dairy Processing - January/February 2023 - 50

SUPPLY CHAIN
Overall grocery bills are still significantly
higher than this time last year, causing
shoppers to shift their purchase habits. "
Krishnakumar Davey, IRI
year, causing shoppers to shift their purchase habits. "
Quick trips to the store also have become more popular, up 5.7% in
the last 12 weeks compared with the same time last year, indicating that
consumers are choosing to purchase products across different stores to get
the best deals.
STILL RECOVERING
The supply chain challenges over the past year have improved, but have not
yet returned to pre-pandemic normalcy.
The Council of Supply Chain Management Professionals said in its most
recent Supply Chain Quarterly that freight volumes for sea, air and trucks are
expected to decrease in 2023, and freight rates for all three " are on track to
drop from their pandemic high points. "
But a survey of supply chain managers conducted by CNBC in midDecember
found more than half do not expect supply chains to return to
normal until 2024 or after. Another 29% predicted recovery either in or after
2025 or never. The greatest challenges cited in the survey included raw
material availability, port congestion, a lack of skilled workers and reduced
warehouse space because of rising inventories.
Transportation woes continue, as well. The truck driver shortage
eased slightly in 2022, after the majority of carriers raised pay in 2021, but
the industry still faces its second-largest number of vacancies on record,
according to American Trucking Associations Chief Economist Bob Costello.
The improvement is expected to be temporary, given that an aging workforce
and freight demand are both projected to grow in the coming year.
The threat of a labor strike on US railroads was seemingly resolved in
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Dairy Processing - January/February 2023

Table of Contents for the Digital Edition of Dairy Processing - January/February 2023

Dairy Processing - January/February 2023 - Intro
Dairy Processing - January/February 2023 - 1
Dairy Processing - January/February 2023 - 2
Dairy Processing - January/February 2023 - 3
Dairy Processing - January/February 2023 - 4
Dairy Processing - January/February 2023 - 5
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