Hormel’s One Supply Chain Initiative Unlocks Capacity

Hormel’s One Supply Chain Initiative Unlocks Capacity

Hormel Foods has succeeded in unlocking supply chain capacity to shift operations to meet higher and sustained demand for all four of its food segments. That is despite lower production volumes caused by plant closures, and despite increased costs to accommodate enhanced employee and food safety during the pandemic.

The company’s success is attributed to a supply chain initiative called One Supply Chain that sought to improve production efficiencies, integrate new capacity, and leverage strategic partnerships to increase production across the SPAM, Skippy, Hormel Commpleats, and Herdez brands.


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This post is based on the Forbes article, Hormel Foods Unlocks Supply Chain Capacity To Drive $2.5 Billion Sales Growth, by Rose Celestin, March 16, 2021, and the YouTube video in the Spotlight. Image source: gojak/iStock/Getty Images

Discussion Questions:

1. What are the production challenges that Hormel Foods faced due to COVID-19 disruptions?

Guidance: The challenges included fluctuating demand, fluctuating plant capacity utilization, changing food consumption trends, and increasing supply chain disruption costs.

2.  How did Hormel Foods respond to these production challenges?

Guidance: Hormel Foods implemented Continue reading

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UPS and FedEx Manage Capacity for Peak Vaccine Shipping

UPS and FedEx Manage Capacity for Peak Vaccine Shipping

April 4, 2021

UPS and FedEx are planning to increase vaccine delivery capacity threefold by May.

As of February 2021, the two companies were delivering about 14 million doses per week.  UPS in particular believes it can still prioritize timely vaccine delivery when increased production by multiple manufacturers allows triple the volume in May 2021.


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This post is based on the Bloomberg article, UPS expects 40% jump in vaccine doses next week, peak in May, by Thomas Black,  February 25, 2021, and the YouTube video in the Spotlight. Image source: FG Trade/Getty Images

Discussion Questions:

1. How have distribution points grown since the start of 2021?

Guidance: Distribution points are becoming increasingly varied as local and state governments open up stadiums, arenas, amusement parks, and other large-scale venues in addition to smaller outlets like pharmacy and grocery chains.  Whereas there were about 14,000 distribution points in the vaccine supply chain when UPS and FedEx began deliveries, there were 100,000 as of late February 2021, with that number increasing rapidly.  As distribution points open up, more delivery capacity is needed Continue reading

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Airlines Analyze Summer Capacity

Airlines Analyze Summer Capacity

March 7, 2021

European airlines must soon make critical decisions about summer flight schedules, but with the pandemic still raging and a slower-than-expected vaccine rollout schedules are being made and scrapped at a dizzying pace.

Consumers, unsure of what the future holds, now favor last-minute bookings, making it difficult for airlines to forecast or identify patterns to help them plan summer schedules.


Video Spotlight: 


This post is based on the WTVB article, Airlines flying blind into summer capacity sweepstake, by Laurence Frost and Sarah Young, February 2, 2021, and the YouTube videos in the Spotlight. Image source: Fly View Productions/E+/Getty Images

Discussion Questions:

1.  How serious a mismatch was there last summer between forecasted and actual demand, and how did this affect final scheduling?

Guidance: Airlines planned summer flight availability in early spring of 2020.  As the first lockdowns started, plans drastically changed.  Of the 755 million seats originally scheduled for flights in Western Europe last summer, some 72 percent were cut.

2.  Continue reading

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