Supply chain has a case of post-pandemic blues
Good morning! Happy National Pizza Day - a day always worth celebrating. 🍕 Why did the supply chain manager order a pizza with everything on it? Because they wanted to have a well-rounded meal with all the ingredients. You’re welcome for that one.
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Covid. Russia-Ukraine. Regulatory Capture. Labor disruptions. Supply chain professionals: do mentioning any of these things give you a headache? The global supply chain has been on a wild ride since 2020. With consumer behaviors changing like a pendulum swing, every part of the supply chain - from brokers to truckers to shippers - has been feeling the strain of abnormality.
Check out today’s featured article from AmericanMind.org to read about the post-pandemic issues that have plagued the transportation and logistics industry. Will the rollercoaster ride begin to even out, eventually? Or is turmoil really the “new normal” of the industry? ☕️
Featured Article:
The world’s largest transportation providers are suffering from a nasty case of COVID whiplash. | AmericanMind.org
“The world’s largest transportation providers are suffering from a nasty case of COVID whiplash.”
Packaging & Artificial Intelligence 🤖
Artificial Intelligence may be the answer to a more cohesive packing industry
The packaging industry plays a critical role in the supply chain as it is responsible for protecting and delivering products safely from the manufacturer to the end customer. Packaging plays a crucial role in product protection, brand representation, cost savings, sustainability, and compliance. Packaging designs and materials must keep pace with changing consumer preferences and buying habits. For example, consumers are increasingly seeking environmentally friendly packaging options, and companies must adapt to meet these demands.
Machine learning and AI can assist the packaging industry in several ways:
Predictive maintenance: AI models can predict when a packaging machine is likely to fail and schedule maintenance before it actually fails, reducing downtime and maintenance costs.
Quality control: AI algorithms can be trained to detect defects in packaging, such as cracks or leaks, and sort them out before they reach the end customer.
Optimization: Machine learning can optimize packaging processes, such as material utilization and production speed, reducing waste and improving efficiency.
Personalization: AI can be used to develop personalized packaging solutions, such as custom-fit packaging for individual products.
Supply chain optimization: AI algorithms can analyze data from the entire supply chain, such as delivery times and inventory levels, to optimize the flow of goods and reduce waste.
Repair & Maintenance 🧰
Transitioning a fleet to electric work trucks for long-term success is a tedious process
A long-term success strategy for a company switching from gas-powered vehicles to electric work trucks should include conducting a feasibility study to determine the costs, benefits, and potential challenges of transitioning. This could include an analysis of the total cost of ownership, the availability of charging infrastructure, and the operational requirements of the trucks. Companies should consider investing in the necessary charging infrastructure to support the electric work trucks, such as installing charging stations at company facilities and on the road. Not to mention, there should be extra training for employees on the use and maintenance of electric work trucks, including charging and battery management.
Some companies transitioning are implementing a fleet management system to monitor and manage the performance of the electric work trucks, including tracking charging, battery performance, and maintenance needs. Establishing partnerships with electric vehicle manufacturers and charging infrastructure providers to ensure access to the latest technologies and services could also be a helpful tactic.
Companies should continuously monitor and assess the performance of the electric work trucks and the supply chain, and make improvements as necessary to ensure the long-term success of the transition. Additionally, the ability to develop and implement a sustainability plan that includes goals for reducing emissions and improving energy efficiency, as well as a plan for monitoring and reporting progress, is a plus for consumers.
Let’s Get Global 🌎
🚢 Denmark-based shipping giant A.P. Moeller-Maersk reports record profits in 2022. With full-year revenue skyrocketing to $81.5 billion - a 32% increase from 2021’s $61.8 billion mark - the company is celebrating… cautiously. Maersk CEO Vincent Clerc has stated that the company is recognizing that 2022 was remarkable, but that those profits are unlikely to continue as container volumes and freight rates continue to plummet. Before taxes, profits for the company landed at $30.2 billion in 2022. Not bad, eh?
🇹🇷 Turkish cargo port of Iskenderun devastated after deadly earthquake. Thousands of residents were killed after the disaster in Turkey and Syria on Tuesday and the port suffered losses as stacks of shipping containers collapsed. The logistics and transport infrastructure of the region has been majorly disrupted after port damage and trucks could not access the area. Some shipments are being diverted to a neighbor port in Mersin.
iLevel With You 🏡
More topics for the average American household to consider…
💸 The Fed warns that inflation is a battle Americans will face for quite some time. Federal Reserve Chair Jerome Powell claims that the strong job market has made The Federal Reserve’s efforts to stifle inflation difficult, even after many rounds of interest rate hikes. The economy will begin to cool…. eventually. But the interest rate benchmark rate will remain at its elevated point until inflation reached 2%, a target posed by the central bank. Americans borrowing money to purchase cars and houses will continue to feel the pain for quite some time.
🇺🇸 President Biden’s State of the Union Address drew praise and criticism, as expected. February 7, 2023, Biden delivered his second State of the Union address to the country. Highlighted were an extremely divided Congress and the reminder that Biden’s approval rating has plummeted during his time in office. Republicans and Democrats seem just as divided as ever, as some GOP congress members heckled the President at certain points in his address.
🥚 While avian flu runs rampant through the chicken population, egg prices will remain high. The highly pathogenic avian influenza (HPAI) outbreak that has resulted in the death of over 58 million birds will force egg prices to remain elevated, according to Wells Fargo’s Agri-Food Institute sector manager, Kevin Bergquist. Sen. Jack Reed (RI-D) reached out to the Federal Trade Commission to ask the agency to address possible price gouging of egg producers in the United States, but it isn’t clear if those efforts will change price tags anytime soon. Egg prices have increased by 60% since this time, last year.
🥤 Coca-Cola is a global staple - but how is it made? Coca-Cola is a global brand with a presence in more than 200 countries. This requires a robust and efficient supply chain to ensure that products are delivered to customers on time and in good condition. The high demand for Coca-Cola products requires a flexible and responsive supply chain that can quickly respond to changing customer needs and market conditions.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🏅 NRF Big Show in NYC highlighted new returns technology. Returns policies are becoming increasingly important to e-commerce customers as the retail method continues to grow. Approximately 57% of retailers are evaluating returns management processes as part of their forecasting process, according to omnichannel research. FarEye, Happy Returns, and Zebra Technologies were the standouts at the show - all of which highlighted customer empowerment and positive customer experiences.
🇺🇸 Biden touts middle-class resurgence by “buying American”. In the recent State of the Union Address, President Biden highly his administration’s goal to make the American supply chain strong by focusing on green energy initiatives originating at domestic factories and manufacturing facilities. The focus is being transferred to exporting American products and creating more American jobs.
🚢 Import cargo volumes are at their lowest point in three years. After breaking records in 2022, the outlook for 2023 is looking bleak comparatively. The National Retail Federation (NRF) released the data - the largest retail trade association in the United States, representing retailers of all types and sizes, including chain restaurants and industry suppliers. The NRF's mission is to advance the interests of the retail industry through advocacy, communication, research, and education.
❗️ Warehouse demand reached new heights in 2022. According to Dallas-based industrial real estate firm CBRE, the industrial and logistics warehousing space demand is continuing to increase. Southern California’s Inland Empire led the pack with Chicago, Atlanta, and Savannah, Georgia following closely behind. Despite looming recession fears, companies are hoping to find new homes for their e-commerce operations.
♻️ Good supplier engagement relies on accurate data. Good supplier engagement involves clear and effective communication, which is essential for obtaining accurate and up-to-date information from suppliers. When suppliers feel valued and engaged, they are more likely to share relevant information and collaborate with their customers. This can help to build a strong relationship based on trust and mutual understanding.
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.