Peeps are the most popular non-chocolate Easter candy. According to Just Born, their manufacturer, enough marshmallow chicks are produced each year to circle the globe two times over. [5] Due to the COVID-19 outbreak, Peeps production has been temporarily halted, but fortunately, all of this year’s supplies have already been shipped out to retailers. [6]
Transporting over one billion Peeps [7] each year is a substantial undertaking, but Just Born uses strategic inventory management and transportation management systems to get the job done. The company used to deliver Peeps to two shipping points located 75 miles away from their Bethlehem, PA facility. But, in 2010, the company shifted to using a third-party logistics (3PL) provider with a closer distribution center. This helped eliminate half a million shuttle miles each year, in addition to reducing other transportation-related expenses. [8]
By prioritizing small shipment sizes, Just Born and its 3PL partners can distribute Peeps to retailers across the country quickly and cost-effectively, sharing truck space with products from other candy manufacturers to reduce costs.
To meet the increasing demand, supply chain managers need to prioritize well-coordinated partnerships with vendors and service providers. The Easter supply chain is a complex one, and by optimizing operations to run smoothly and efficiently, candy manufacturers are helping to guarantee a sweeter future for us all.