👛💰👾 Dior's Disclosure Drama, Tax Track Halted, & Tech Turbulence
Good morning! ☀️
Buckle up because today’s newsletter is packed with the latest twists and turns in the supply chain world.
👉 First up, Dior, part of the swanky LVMH family, got caught napping on UK legal disclosures about working conditions in its supply chain. Until July 19, their website was rocking outdated anti-slavery statements and an invalid sustainability certification. Yikes!
👉 Next, the Multistate Tax Commission (MTC) has decided not to change the game with the “pick up and deliver” rule for freight taxes. They’re sticking with the good old “mileage rule,” meaning taxes are based on the miles traveled. This is great news for states with lots of land… but fewer folks.
👉 And finally, in a saga that sounds straight out of a tech thriller, Microsoft and CrowdStrike are joining forces to push back against Delta Air Lines. Delta is pointing fingers at them for thousands of canceled flights after a tech outage last month. The plot thickens…
Stay tuned and stay sharp - let’s dash through the day with all the insights you need.
“Do one thing every day that scares you.”
Dior's Compliance Woes: Catching Up with Modern Slavery Laws
Dior, part of the LVMH family, recently got busted for falling behind on UK legal disclosures about working conditions in its supply chain. Up until July 19, their UK website had outdated anti-slavery statements and an invalid sustainability certification. The Modern Slavery Act of 2015 says companies with a UK turnover of £36 million or more need to publish yearly anti-slavery statements. Dior only updated their 2020 statement after Reuters poked them.
Things got even spicier when Italy's competition authority started investigating Dior and Armani for possibly misleading consumers about their social responsibility. This pushed big investors to tell LVMH to step up their game in monitoring worker treatment. Dior condemned the bad practices, ditched the shady suppliers, and promised to cooperate with the authorities.
In response, Dior put out a 2023 modern slavery statement and promised to boost employee awareness about modern slavery. But they still haven't published statements for 2021 and 2022. LVMH is now saying they'll tighten supply chain controls and ramp up audits to avoid these issues in the future.
WHY IS THIS IMPORTANT?
Why should we in transportation and logistics care about Dior’s supply chain drama? It’s a wake-up call about how crucial transparency and ethical practices are in our supply chains. With regulations tightening, our logistics operations need to stay compliant and maintain high standards. What happens in fashion can ripple through all industries.
🔥 OUR HOT TAKE?
Even fancy brands like Dior can't skip on supply chain ethics. In logistics, transparency and rigorous oversight aren't just buzzwords—they're key to staying ahead and building trust.
Dead-End for Tax Shift on Freight Valuation
The Multistate Tax Commission (MTC) decided not to go ahead with the “pick up and deliver” rule for freight taxes. Instead, they’re sticking with the current “mileage rule.” This means taxes are based on the miles traveled, which is a win for states with lots of land but fewer people.
Chelsea Marmor, an attorney for trucking companies, mentioned that the push for the new rule didn’t make it past the MTC’s Uniformity Committee. This committee aims for consistent taxation across states but can’t enforce changes. While Massachusetts already uses the pick-up and deliver method, California was pushing hard for the change due to its massive import volume.
The trucking industry, including the American Trucking Associations (ATA) and the California Trucking Association, largely opposed the change. They argued that the mileage rule works just fine and keeps things uniform.
So, the mileage rule stays, keeping things fair and predictable for now.
WHY IS THIS IMPORTANT?
For those of us in transportation and logistics, this affects how freight taxes are calculated and can impact your costs. Sticking with the mileage rule means avoiding new complexities and potential higher taxes in more populated states. It keeps things straightforward, especially if your routes cover a lot of miles across different states.
🔥 OUR HOT TAKE?
Sticking with the mileage rule keeps tax fair and simple. In logistics, consistency and predictability are key to managing costs and staying efficient. Why fix what isn't broken?
Tech Titans vs. Delta: The Blame Game Over Flight Cancellations
Microsoft and CrowdStrike are teaming up to fight back against Delta Air Lines, which is blaming them for thousands of canceled flights after a tech outage last month. Microsoft’s lawyer, Mark Cheffo, argues that Delta's key IT systems are likely managed by other tech companies, not Microsoft Windows.
Cheffo fired back in a letter, calling Delta’s claims “incomplete, false, misleading, and damaging.” He questioned why other airlines recovered faster and noted that Delta had refused help from both Microsoft and CrowdStrike.
Delta's CEO, Ed Bastian, said the outage, caused by a faulty CrowdStrike upgrade on Microsoft Windows, cost the airline $500 million and hinted at legal action. Despite Delta's hefty IT investments, Microsoft and CrowdStrike dispute these claims, adding more fuel to the fire.
WHY IS THIS IMPORTANT?
Tech outages can wreak havoc in logistics and transportation. If a giant like Delta can face such chaos, it’s a good reminder to double-check your own IT systems and backups. Strong cybersecurity and reliable tech are crucial to avoid costly downtimes.
🔥 OUR HOT TAKE?
Even big players like Delta aren't immune to tech failures. In logistics, having rock-solid IT and quick recovery plans is key to keeping things running smoothly and avoiding big losses.
Daily Riddle:
I'm a guard without a gate,
I protect what you create.
Invisible yet strong,
I keep data from going wrong.
What am I?
____________
Previous Riddle Answer: Ships
Hurricane Milton is expected to hit Florida’s Gulf Coast late Wednesday night or early Thursday morning.