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Wake Forest professor talks about supply chain issues

Wake Forest professor talks about supply chain issues
YOU PROBABLY NOTICE WHILESHOPPIN TO FIND. THE PRESIDENT HAS A PLAN HE HOPE WILL GETHE T SUPPLY CHAIN MINOV QUKER.IC WXII'S JUSTIN SHRAIR ASKED AN EXPERT IF HE THINKS IT'LL HELP AND HOW LONG IT'LL TAKE FOR US TO SEE AN IM.CT REPORTER: IN AN ANNOUNCEMENT WEDNESDAY PRESIDENT JOEID BEN SAYS THE PT OROF LOS ANGLES WILL BEGIN OPERATING 24 HOURS A DAY SEVEN DAYS A WEEK. THE PORT SAW MEOR THAN 9 MILLION CONTAINERS COME THRU IN 2020. >> THE PORT OF LOS ANGELES WILL OPEN OVER 60 EXTRA HOURS A WEEK, WILL BE OPEN. IN TOTAL, THAT WILL ALMOST DOUBLE THE NUMBER OF HOURS THAT THE PORT IS OPEN FOR BUSINESS FROM EARLIER THIS YEAR. THAT MEANSN A INCREASE IN THE HOURS FOR WORKERS TO BE MOVING CARGO OFF SHIPS, OONT TRUCKS AND ILRA CARS TO GET TO THEIR DESTINATN.IO REPORTER: THE PRESIDENT SAYS WALMART IS GOING TO BE MOVING ITS PRODUCTS 24/7 FROM PORTS TO STORES NATIONWIDE AND SHIPPING COMPANIES LIKE FEDEX AND UPS HAVE COMMITTED TO SIGNIFICANTLY INCREASING THE AMOUNT OF GOODS THEY WILL MOVE AT NIGHT. PROFESSOR OF OPERATIONS AND SUPPLY CHAIN MANAGEMENT, HARESH GURNANI SAYS SMALL CHAESNG CAN MAKE A DIFFERENCE. >> SMALL CHANGES ARE ABLE TO BRING ABOUT A SUBSTANTIAL IMPROVEMENT WHICH MEANS EVEN IF YOU ARE ABLE TO INCREASE CAPACITY BY A SMALL PERNTCEAGE YOU WOULD SEE A MEANINGFUL DIFFERENCE IN THE PERFORMANCE, THE TRANSIT TIMES THE UNLOADING TIMES REPORTER: BUT HE SAYS WHILE SOME COMPANIES ARE WORKING TO REPLENISH ITEMS FASTER IT YMA COME AT A HIGHER COST TO THEM WHICH COULD TRANSLATE TO HIGHER PRICES IN STORES FOR YOU THE CONSUMER. >> THEY HAVE TO ADOPT STRATEESGI WHICH ARE NOT NECESSARILY PREFERRED BY THEM BUT IN ORDER TO REPLENISH INVENTORY FASTER TH AEYRE FORCED TO ADOPT THOSE CHANGES WHICH COME AT A COST AND CONSEQUENTLYE W SEE HIGHER PRICES AT THE GROCERY STORES AT THE DEPARTMENTAL STESOR REPORTER: GURNANI SAYS AS WE APPROACH THE HOLIDAYS, IT IS AN INCENTIVE RFO RETAILERS TO TRY THEIR BEST TO MAKE SURE STORES HAVE ITEMS. BUT HE SAYS THE TWO CATEGORIES WHERE THERE WILL BE A FORESEEABLE SHORTAGE AT LEAST THROUGH THE SPRINGIL WL BE WITH ELECTRONICS AND AUTOMOLE >> THE SPEED IN WHICH THINGS IMPROVE, THINGS WILL SURPRIS
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Wake Forest professor talks about supply chain issues
You've probably noticed while shopping. Some items are had to find. President Joe Biden said he has a plan he hopes will get the supply chain moving faster by the end of the year. Biden announced changes in an effort to combat supply chain issues in the United States. WXII 12 News asked an expert if he thinks it'll help. And how long it'll take for us to see an impact. Professor Haresh Gurnani said small changes could lead to big improvements but he said it will take time. In an announcement Wednesday, Biden says the Port of Los Angles will begin operating 24 hours a day seven days a week. The port saw more than 9 million containers come thru in 2020. "The port of Los Angeles will open over 60 extra hours a week, will be open. In total, that will almost double the number of hours that the port is open for business from earlier this year. That means an increase in the hours for workers to be moving cargo off ships, onto trucks and rail cars to get to their destination, " Biden said.The president said Walmart is going to be moving its products 24/7 from ports to stores nationwide and shipping companies like FedEx and UPS have committed to significantly increasing the amount of goods they will move at night. Haresh Gurnani, professor of operations and supply chain management at Wake Forest University, said small changes can make a difference. “Small changes are able to bring about a substantial improvement which means even if you are able to increase capacity by a small percentage you would see a meaningful difference in the performance, the transit times the unloading times,” he said. But he said while some companies are working to replenish items faster it may come at a higher cost to them which could translate to higher prices in stores for you the consumer. “They have to adopt strategies which are not necessarily preferred by them but in order to replenish inventory faster they are forced to adopt those changes which come at a cost and consequently we see higher prices at the grocery stores at the departmental stores,” he said.Gurnani said as we approach the holidays, it is an incentive for retailers to try their best to make sure stores have items. But he says the two categories where there will be a foreseeable shortage at least thru the spring will be with electronics and automobiles. But he says teamwork between the private sector and the federal government could spell out big changes sometime down the road. “There is concerted effort not just by the government but also by the private sector second the congestion that we are currently experiencing as I mentioned earlier small changes are going to being about substantial improvements so we can look for things to get better and once they start to get better the speed at which things will improve is really going to surprise us,” he said.Gurnani said not to panic but if you find an item and the price is not excessively high, he recommends buying it now instead of waiting until the holidays. “The issue is that we may not necessarily see price competition that we normally see at this time of the year where retailers are competing vigorously with each other so that might be a bit tempered in the current time frame. Having said that I think it would make sense for most consumers to make their purchases as quickly as possible and not necessarily have the temptation to wait for a better deal,” he said.

You've probably noticed while shopping. Some items are had to find. President Joe Biden said he has a plan he hopes will get the supply chain moving faster by the end of the year. Biden announced changes in an effort to combat supply chain issues in the United States.

WXII 12 News asked an expert if he thinks it'll help. And how long it'll take for us to see an impact. Professor Haresh Gurnani said small changes could lead to big improvements but he said it will take time.

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In an announcement Wednesday, Biden says the Port of Los Angles will begin operating 24 hours a day seven days a week. The port saw more than 9 million containers come thru in 2020.

"The port of Los Angeles will open over 60 extra hours a week, will be open. In total, that will almost double the number of hours that the port is open for business from earlier this year. That means an increase in the hours for workers to be moving cargo off ships, onto trucks and rail cars to get to their destination, " Biden said.

The president said Walmart is going to be moving its products 24/7 from ports to stores nationwide and shipping companies like FedEx and UPS have committed to significantly increasing the amount of goods they will move at night. Haresh Gurnani, professor of operations and supply chain management at Wake Forest University, said small changes can make a difference.

“Small changes are able to bring about a substantial improvement which means even if you are able to increase capacity by a small percentage you would see a meaningful difference in the performance, the transit times the unloading times,” he said.

But he said while some companies are working to replenish items faster it may come at a higher cost to them which could translate to higher prices in stores for you the consumer.

“They have to adopt strategies which are not necessarily preferred by them but in order to replenish inventory faster they are forced to adopt those changes which come at a cost and consequently we see higher prices at the grocery stores at the departmental stores,” he said.

Gurnani said as we approach the holidays, it is an incentive for retailers to try their best to make sure stores have items. But he says the two categories where there will be a foreseeable shortage at least thru the spring will be with electronics and automobiles. But he says teamwork between the private sector and the federal government could spell out big changes sometime down the road.

“There is concerted effort not just by the government but also by the private sector second the congestion that we are currently experiencing as I mentioned earlier small changes are going to being about substantial improvements so we can look for things to get better and once they start to get better the speed at which things will improve is really going to surprise us,” he said.

Gurnani said not to panic but if you find an item and the price is not excessively high, he recommends buying it now instead of waiting until the holidays.

“The issue is that we may not necessarily see price competition that we normally see at this time of the year where retailers are competing vigorously with each other so that might be a bit tempered in the current time frame. Having said that I think it would make sense for most consumers to make their purchases as quickly as possible and not necessarily have the temptation to wait for a better deal,” he said.