The Friday Report Blog: September 1st, 2023

ILWU Locks in a 6-Year Contract

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) celebrated a positive breakthrough, as ILWU members overwhelmingly voted to ratify a six-year contract agreement with the PMA.

Covering over 22,000 longshore workers across 29 West Coast ports, the contract secured 75% approval from the union and was also endorsed by PMA member companies, including major players like Maersk, CMA CGM, MSC, and ONE. ILWU International President, Willie Adams, expressed gratitude to all involved for their resilience during the prolonged and testing negotiations, which spanned over 13 months and involved numerous port disputes and closures.

PMA President and CEO, Jim McKenna, underscored the contract’s importance for overcoming future challenges and maintaining the West Coast ports as preferred global destinations, thereby supporting economic growth and employment. Supply Chain Dive

Sheetz Invests $145M in Ohio Distribution Hub

Sheetz, the well-regarded convenience store chain, is set to open its fourth distribution center in Findlay, Ohio, marking a strategic expansion. The new facility joins Sheetz’s existing centers in North Carolina and Pennsylvania.

Even though it’s set to open in 2026, the company is already on the hunt for a director for the Findlay center, who will undergo comprehensive training at their Claysburg and Burlington sites. Employees at the centers enjoy a balanced work schedule, ensuring they get quality time off.

CEO Travis Sheetz highlighted Findlay’s central role in the brand’s growth strategy, especially as they expand into Michigan. This venture, developed in collaboration with local entities, promises to boost job opportunities, emphasizing Sheetz’s dedication to community growth and success. Supply Chain Dive

Unwrapping Hershey’s Billion-Dollar Supply Chain Strategy

Hershey is committing $1 billion to bolster its supply chain, emphasizing growth and innovation rather than mere cost-cutting. They envision their supply chain as a catalyst for growth, ensuring product consistency, quality, and tailored capabilities for their customers.

A key part of this investment is the establishment of a new chocolate factory in Hershey, Pennsylvania, adding 13 new production lines, and enhancing 11 current ones. A major focus is on their core brands, with Reese’s capturing a significant 60% of this investment. Advanced technologies, like analytics and AI, are being employed to optimize production.

In addition, Hershey is exploring modular production lines with robotics and automation, offering flexibility and fostering innovation. As they adopt more technology, Hershey also recognizes the importance of upskilling its workforce and ensuring their alignment with the company’s forward-looking vision. Supply Chain Dive