New US Supply Chain Risk Cyber Chief appointed
Good morning! Happy Groundhog Day! As we celebrate this annual tradition, it's a good time to reflect on the predictability of our supply chains and the measures we can take to ensure their stability. Just like Punxsutawney Phil's shadow, the reliability of our supply chains can have a significant impact on the success of our businesses.
So let's not let our supply chains be shrouded in mystery like Phil's shadow, let's make them a source of comfort and stability for our businesses. ☕️
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The US Government's Cybersecurity and Infrastructure Security Agency (CISA) is a federal agency of the United States government that is responsible for securing the nation's critical infrastructure and federal networks. CISA was established in November 2018 and operates within the Department of Homeland Security (DHS). CISA plays a crucial role in protecting the nation's critical infrastructure and federal networks against cyber and physical threats and works to ensure the resilience and stability of these systems in the face of potential disruptions.
Check out today’s featured article from Supply Chain Digital to read about the latest addition to the Biden Administration - a new supply chain risk cyber chief. Does this move signal further wariness of the federal government to protect supply chains from cyberattacks?
Featured Article:
Biden appoints new supply chain risk cyber chief | Supply Chain Digital
“The US Government's Cybersecurity and Infrastructure Security Agency (CISA) is building out a new supply chain risk management office to help agencies, industry, and other partners to act on the raft of new cybersecurity regulations, guidance, and policies. “
Labor Issues & Trucking 🚛
Trucking owner-operators facing new challenges in 2023
Trucking fleets will likely be facing a litany of issues over the course of the year, as an aging workforce begins to take their leave and the owner-operator model faces sweeping federal regulations. The owner-operator model in the trucking industry has been fighting against the California AB5 law for several years, which redefined the independent contractor definition. Additionally, there is a growing problem of filling slots in a fleet with younger recruits as the driver shortage persists.
Why are these trucking labor issues disruptive?
Labor issues in the trucking industry can be disruptive to the supply chain because trucking is the primary mode of transportation for the vast majority of goods in the United States and many other countries. When trucking companies face labor issues, such as strikes, slowdowns, or labor disputes, it can create significant disruptions in the movement of goods, leading to delays and increased costs for businesses across the supply chain.
Some common labor issues in the trucking industry include disputes over pay and benefits, working conditions, and job security. These disputes can result in work slowdowns, strikes, or even complete shutdowns of trucking operations, which can have a major impact on the supply chain. For example, a strike by truck drivers could lead to a shortage of trucks and drivers, resulting in delays in the delivery of goods and causing backups at shipping ports and warehouses.
Additionally, labor issues in the trucking industry can also create uncertainty for businesses across the supply chain, as they may struggle to accurately forecast delivery times and plan for the movement of goods. This can have a negative impact on their bottom line, as they may be forced to spend more on expedited shipping or incur additional costs due to supply chain disruptions.
Driver Issues & Regulations 🚛
Sound off: FMCSA tackles the topic of automated driving systems
The Federal Motor Carrier Safety Administration (FMCSA) is asking for more detailed information to analyze before it lays down any specific regulatory rules in regard to automated driving systems. The question of implementing remote assistants and what will be required of the fleet for inspection and maintenance services for these vehicles are currently sitting in a grey compliance area. The agency is inviting comments on the proposed rulemaking and specific questions for 45 days on the Federal Register.
There have been diverse opinions about integrating automated driving systems into the trucking industry.
Pros of Automated Driving Systems:
Increased safety: Automated driving systems have the potential to greatly reduce the number of accidents caused by human error.
Improved efficiency: Automated systems can optimize traffic flow and reduce congestion, leading to faster and more efficient travel times.
Enhanced mobility: Automated driving systems can provide greater mobility for those who cannot drive, such as the elderly, disabled, and children.
Lower fuel consumption: Automated systems can improve fuel efficiency by reducing idling, speeding, and other wasteful driving habits.
Cons of Automated Driving Systems:
Technical issues: Automated driving systems rely on complex technology, which can malfunction or fail.
Cybersecurity concerns: Automated systems can be vulnerable to hacking and cyberattacks, which could pose serious safety risks.
Cost: Automated driving systems can be expensive to develop and implement, and may require significant investments in infrastructure and technology.
Job loss: Automated driving systems could lead to job losses for drivers and other transportation workers.
Public trust: There may be a lack of public trust in automated driving systems, and some people may be hesitant to adopt them.
Let’s Get Global 🌎
America Obama GIF via GIPHY
🇨🇳 China’s population is shrinking, and fast. Dubbed “the great people shortage” by some, China’s population is still home to 1.4 billion people but shrank by 850,000 people over the course of 2022. India, the world’s second-most populated country, is set to surpass China in 2023 and will also gain in the working-class population (ages 20-69) within a few short years. China’s fertility rate has been declining since the 1970s, now falling to around 0.7 children per woman. The Chinese government has noticed the decline, relaxing its restrictive one-child policy years ago in 2016.
🇦🇺 Austrailia-based 3PL Lexington Logistics is making waves. Deanne Luke, the founder of Lexington Logistics, spoke with DC Velocity about their beginnings in the fashion industry and how they’ve transformed their professional life into fulfillment services in Brisbane, Australia. Lexington Logistics focuses on fulfillment services for boutique brands that are working on expanding their business.
🇺🇸 North American automaker giant GM warns EV production hindered until late 2023. General Motors executives are stating that the company will be unable significantly increase its EV production until its US battery cell production plants are finished construction. Competitors Hyundai and Ford have been closing in on industry leader Tesla, and General Motors doesn’t want to figuratively “miss the boat”. The automaker’s launch of the GMC Hummer EV in 2021 only sold 854 vehicles in 2022.
iLevel With You 🏡
More topics for the average American household to consider…
🚚 Americans are moving to the South and the West in droves. While California and New York lost hundreds of thousands of residents, Florida, North Carolina, South Carolina, and Texas were mass gainers. Some speculate that the migration is due to lower taxes and also reference the strong job market and “bounce-back” post-pandemic. In a notable statistic, those leaving New York to save approximately 15 times more from lower housing costs when relocating. The trend to uproot and transition in American life is likely to continue as more and more families search for a lower cost of living.
🥬 More shortages… incoming! The “supply chain challenges” may not be the excuse to use in 2023, but the availability of some key household items may be in short supply regardless. Geopolitical issues, demand shifts, and the ongoing threat of climate change can impact several items such as vegetables, lithium, pharmaceuticals, and semiconductors. Many of your favorite things may be more expensive… and less available.
⛏️ Nevada to become home to $650M GM-sponsored lithium mine. General Motors is investing a whopping $650M into Canada-based Lithium Americas and creating a partnership to develop the Thacker Pass mine in Nevada. The Thacker Pass mine would become the third-largest lithium mine source on a global scale and assist GM to meet its EV goals. Local Native American tribes and other environmental groups have made several attempts to block the project development.
⛽️ The national diesel average is creeping upward. For the second week in a row, the Department of Energy’s Energy Information Administration (EIA) has reported there was an increase in the national average price per gallon of diesel gasoline. Inclining 1.8 cents, the national average came to $4.622 per gallon. This 1.8-cent increase follows last week’s 8-cent increase. Compared to this time last year, the price of diesel is up 77.6 cents.
😔 Consumer confidence dropped in January. According to The Conference Board Consumer Confidence Index, the drop accounted for two points - standing at 107.1, as opposed to 109.0 in December. The Conference Board Consumer Confidence Index is a widely recognized measure of consumer sentiment and confidence in the economy. The index is based on a monthly survey of U.S. consumers, who are asked about their current and future expectations for the economy, employment, and personal finances.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
📉 Hapag Lloyd CEO shares that freight rates will continue to plummet. Due to the adjusting shipping demand and supply after three years of incredible profits, the container freight rates are normalizing. Germany's liner Hapag Lloyd CEO Rolf Habben Jansen states that the company’s riveting profits were abnormal and a result of incredible circumstances.
📏 Measuring comprehensive supplier performance management is critical. Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs) are important metrics to measure for comprehensive supplier performance management as they provide valuable insights into the supplier's performance and potential risks. Measuring KPIs and KRIs allows organizations to have a comprehensive view of supplier performance and to make informed decisions about managing supplier relationships. It helps to ensure that the supplier is meeting expectations and that the organization is able to effectively manage any potential risks associated with the supplier.
♻️ Last-mile delivery services can become more sustainable. The last-mile delivery space has the potential to reinvent itself to operate more sustainably by implementing several key strategies, including adopting electric vehicles, implementing green logistics practices, and encouraging active delivery modes. Utilizing technology such as predictive algorithms, route optimization software, and real-time tracking can help to improve delivery efficiency, reduce emissions, and minimize waste.
⚖️ US House Transportation & Infrastructure (T&I) Committee is refocusing on the supply chain. This is a standing committee within the House of Representatives and is responsible for legislative oversight and jurisdiction over a broad range of transportation and infrastructure-related issues. This includes the development of policies related to highways, bridges, public transit, aviation, ports and harbors, water resources, and environmental protection. The T&I Committee plays a key role in shaping national transportation and infrastructure policy and in authoring and advancing transportation-related legislation.
🔋 Nikola announces the transition of hydrogen infrastructure building to its new HYLA brand. Nikola specializes in the design, development, and production of zero-emission vehicles and energy storage systems. The company's primary focus is on the development of heavy-duty electric trucks, including semi-trucks for commercial use, as well as all-terrain vehicles and recreational watercraft. Nikola aims to provide sustainable and environmentally friendly transportation solutions to the market.
🛍️ Retail media and supply chain collaboration enhance operations. Retail media and supply chain collaboration can bring several demand-shaping benefits, including improved visibility, better forecasting, and increased agility. By working together, retailers and suppliers can create more personalized and seamless customer experiences, increasing customer satisfaction and loyalty. Collaboration between retail media and the supply chain can also lead to more informed pricing decisions, allowing retailers to better balance demand and supply, and reduce overstocking and markdowns.
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.