Demand Outpaces Supply for Rental Cars

Demand Outpaces Supply for Rental Cars

May 26, 2021

Rental car prices have skyrocketed, surprising some travelers who are also finding vehicles hard to come by.

In some high demand locations, rental car costs exceed $300 per day.  Some of the worst regions of the country, such as southern California or Florida, saw March rates exceed $500 per day.

Even if customers are willing to pay these rates, they may find it impossible to get a vehicle, due to pandemic-related shortages.


Video Spotlight: 


This post is based on the Autoweek article, Here’s Why the Rental Car Shortage Isn’t Going Away Anytime Soon, by Jay Ramey, April 6, 2021; the KOAT article,  Need a rental car? They might not be so easy to find, by Shellye Leggett, May 26, 2021; and the YouTube video in the Spotlight. Image source: Blue Jean Images/Alamy Stock Photo

Discussion Questions:

1. What key factors account for the lack of rental car capacity?

Guidance: Early in the pandemic when the nationwide lockdown was in place and traveling ground to a virtual halt, most rental car companies sold off at least Continue reading

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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.


Video Spotlight: 


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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