Impact of Proposed Relief Package Yet to be Measured on e-Commerce and Big Box Supply Chains

When and if President Biden’s proposed $1.9 trillion coronavirus relief package is enacted, supply chain managers are asking one big question:

Will this be the light at the end of the light at the end of the COVID-19 tunnel for large eCommerce players and big-box retailers?

Scott Webb, CEO Avionos, which designs and implements digital commerce and marketing solutions for clients like Kellogg’s, JLL and CSA Group recently shared this observation with SCMR:

“Typically any change in administration, particularly between parties, has a bit of a chilling effect on capital investments like new technologies as firms look to see how the new economic policies will play out.” He says.

In this case, however, President Biden is not walking into a typical economy, adds Webb.

“We actually expect to see investments in eCommerce continue to grow significantly this year and potentially even outpace 2020 levels as those firms that paused last year during pandemic uncertainty race to catch up with competitors who leaned into the macro changes in consumer and business purchasing and already have mature digital offerings.”

According to Webb, consumer spending habits have changed, in many ways permanently.

“We expect certain trends that were accelerated out of sheer necessity during the pandemic will not be changing back now that consumers have experienced their benefits. Curbside grocery pickup and home delivery, for instance, are here to stay,” he says.

Webb says that what will be even more amazing to witness this year will be the whiplash effect upon B2B commerce.

“2020 was a transformational year in how businesses operate, from remote workforces to brand new global supply chains.”

He concludes that those firms that took a “wait and see” approach to these changes will be in a scramble to catch up to their competitors who got the jump start and already have made permanent shifts in their eCommerce strategies.

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