Microsoft executive visits African mine with efforts to ethically source cobalt
Good morning! Welcome to the latest edition of our supply chain newsletter. Grab a cup of coffee and get ready to catch up on the latest industry news and insights to start your weekend off right! ☕️
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Deep in the Democratic Republic of Congo, a small group of representatives - including Microsoft’s chief of staff for its technology and corporate responsibility team - visited a cobalt mine. With the world becoming increasingly dependent on rechargeable batteries as it transitions to green energy practices, Microsoft is becoming more focused on an ethical supply chain.
Check out today’s featured article from Supply Chain Dive to read about cobalt mining in the Democratic Republic of Congo and Microsoft’s efforts to take responsible and ethical sourcing of material seriously. Will more companies follow suit?
Featured Article:
Responsible cobalt sourcing ‘will take a coalition to solve,’ Microsoft says | Supply Chain Dive
“A representative from the computing giant joined a visit to an artisanal mine in the Democratic Republic of Congo that saw the benefits of a formalization pilot.”
Inflation & Money Matters 💰
High inflation is the gift that keeps on giving
Despite the United States’ annual inflation taking a breather at 6.4% in January, the inflation rates are likely to remain high for quite some time. Overall, the causes of high inflation rates are complex and multifaceted and may differ between countries and regions. It's important for policymakers to carefully monitor economic indicators and adjust policies as needed to maintain price stability and support sustainable economic growth.
Some reasons for the high inflation rates may be due to the COVID-19 pandemic that caused massive disruptions to global supply chains, leading to shortages of goods and raw materials. This can drive up prices as demand outstrips supply for long periods of time. As economies recover from the pandemic, there are labor shortages in some industries, which can lead to higher wages and increased costs for businesses. These increased costs may be passed on to consumers in the form of higher prices. Additionally, the US and European governments have implemented significant fiscal stimulus packages to support their economies during the pandemic. While this can help to boost economic growth, it can also lead to higher inflation as demand increases.
Shipping & Network Association 🚢
Maersk & MSC say they will split in 2025 💔
Since 2015, the two largest container lines in the world have been in a vessel-sharing agreement (2M Alliance) - set to expire in 2025. Last month, the companies announced that they would not be continuing the partnership past that point. Their cooperative relationship through their participation in a number of strategic alliances currently enables them to share vessel capacity, reduce costs, and improve services for their customers. This 2M Alliance involves the sharing of vessel space on a number of trade routes, primarily between Asia and Europe, and is designed to improve schedule reliability, reduce transit times, and provide customers with a wider range of services.
The termination of the 2M Alliance could result in a reduction of vessel capacity and service offerings on some of the trade routes covered by the alliance. This could lead to increased competition between the two companies, as they would be competing for market share instead of collaborating. The reduction in vessel capacity could also lead to increased shipping rates and longer transit times for customers.
However, this could provide an opportunity for other shipping lines to gain market share by forming their own strategic alliances or by expanding their operations. This could result in more intense competition in the industry, which could benefit customers by providing them with more options and lower prices.
iLevel With You 🏡
More topics for the average American household to consider…
💸 US consumers see light at the end of the economic tunnel. Despite high-interest rates and staggering inflation, Americans are continuing to spend the money in their pocketbooks. Overall, it's important to keep in mind that every individual's spending habits are unique, and there are many factors that can influence consumer behavior in the face of high inflation and interest rates. Some purchases are necessities, and Americans may not have the option to cut back on these expenses, regardless of inflation or interest rates. For example, people still need to pay for housing, transportation, and food.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
⏰ British insurance company Chubb reports just-in-time supply chain models are risky. While just-in-time supply chain models are a popular approach in manufacturing and logistics, it also comes with a certain risk. JIT models depend on reliable and efficient transportation and logistics networks to deliver materials and products in a timely and predictable manner. Any disruptions in these networks, such as natural disasters, labor strikes, or transportation breakdowns, can lead to delays and production stoppages, resulting in lost sales and revenue. JIT models rely on suppliers to deliver high-quality materials and components in a timely manner. Any quality issues with these inputs can lead to production delays or disruptions, causing additional costs and damaging the reputation of the company.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.