Technology could augment labor shortages in poultry retail

Emerging technologies for retail could help counter some of the labor shortages that are causing extreme stress to the poultry supply chain.

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happy middle aged butcher working in butchery
happy middle aged butcher working in butchery
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Emerging technologies for retail could help counter some of the labor shortages that are causing extreme stress to the poultry supply chain. 

Several factors, including extra unemployment benefits, closed childcare and schools as a result of COVID-19 and pandemic burnout, are resulting in labor shortages in retail. Open positions and a lack of applicants have spurred discussions about increasing the minimum wage and led to offers of other incentives, like tuition, in exchange for employment.

“Due to supply and demand, a shortage of labor of frontline workers is resulting in higher wages, benefits and bonus expenses which means the price of everything. including poultry prices, at the store is rising due to retailers’ economics,” said Stan Byun, VP of strategy at Local Express.

“In addition to price increases, shelves may not be restocked quickly due to labor shortage which will result in loss of sales.”

Many attribute labor issues throughout the poultry supply chain – from production to processing to retail and foodservice – as one of the biggest contributors to the nationwide chicken shortage. 

In addition to labor issues, retail also must keep up with evolving consumer trends, many of which accelerated during COVID-19. E-commerce was available to shoppers before the pandemic, but few used it until social distancing became a major concern. This shift is expected to be a permanent one.

Retail evolves

New technologies could help streamline some of these challenges and, in many cases, augment human labor.

“Technologies for self-checkout via in-store kiosks, online or mobile apps can help stores to use their labor resources more efficiently, thus keeping the labor expenses in check which will keep prices lower (against competition). Additionally, the use of technologies to proactively monitor inventory will also help to ensure that products are sufficiently stock throughout the supply chain,” Byun explained.

In the future, some retail chains may also adapt to meet the demand for e-commerce with micro-fulfillment centers. These small fulfillment centers typically rely on automation to assemble online orders as well as in-store pickups.

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