Get with the program, supply chain CEOs
Good morning! It's Wednesday morning, and we're excited to bring you the latest updates and insights on the supply chain industry. As the world continues to navigate the ongoing impact of the pandemic, supply chains have faced unprecedented challenges. Let’s take a closer look at some of the key issues facing the industry, such as logistics bottlenecks, supply chain disruptions, and new technologies that are helping to improve efficiency and resilience.
Whether you're a supply chain professional, a logistics expert, or just someone interested in the industry, we hope you'll find this newsletter informative and valuable. So, let's dive in!
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When supply chain CEOs are ignorant of potential issues for their business, it can lead to a number of problems. One of the main issues is that they may not be able to anticipate or respond effectively to disruptions in the supply chain. This can result in significant delays, increased costs, and lost revenue for the company. If a supply chain CEO is not aware of potential issues, they may not be able to take proactive measures to mitigate risks, such as diversifying suppliers or increasing inventory levels.
Check out today’s featured article from Logistics Viewpoints to read about the necessity of supply chain C-Level executives to get educated and inspired about ways to pivot in the midst of unprecedented supply chain issues. Should supply chain company leadership begin challenging the status quo? ☕️
Featured Article:
Note to CEOs: Ignorance isn’t bliss—in fact It can be costly! | Logistics Management
“The Covid pandemic exposed a grim reality: Most shippers have supply chains that are completely unprepared to deal with catastrophic issues.”
Safety & Regulations ⚖️
OSHA issues citations on three more Amazon fulfillment centers
Many Amazon DC workers have cited dangerous working conditions as a reason for unionizing and one DC in Staten Island, New York was successful. But now, the US Department of Labor’s Occupational Safety and Health Administration (OSHA) is joining the fray. Amazon fulfillment centers in Florida, Illinois, and New York have been issued citations due to hazardous working conditions. The citations referenced employee exposure to ergonomic hazards and equipment risks along with performing tasks that risk lower-back injuries.
OSHA has been watching the massive retailer and warehouse company closely as Amazon faced increased scrutiny from lawmakers, labor groups, and the public, who are concerned about the safety and well-being of workers in these facilities. Amazon has been criticized for not providing paid leave to employees who are infected with COVID-19 or who have been exposed to the virus.
Safety & Regulations ⚖️
Robotics need a proper human labor management system to operate effectively
Robots and humans - we need to work together. Robotics need a proper human labor management system to operate effectively in the supply chain logistics industry for a number of reasons:
Collaboration: Robotics and human labor often work together in supply chain logistics. Robots are typically used to handle repetitive, dangerous, or physically demanding tasks, while humans handle tasks that require greater dexterity, judgment, and decision-making. A proper human labor management system is needed to ensure that robots and humans can collaborate effectively and efficiently.
Training: Robotics is a complex and ever-evolving technology, it's important to have a human labor management system in place to ensure that employees are properly trained and able to operate and maintain the equipment.
Safety: Robotics can increase the risk of accidents and injuries if not properly managed. A proper human labor management system is needed to ensure the safety of employees working with robots and to prevent accidents.
Flexibility: Robotics can increase the efficiency and productivity of supply chain logistics, but it is important to have a human labor management system in place to ensure that operations can be adjusted and scaled as needed.
Maintenance: Robotics require regular maintenance and repairs, a proper human labor management system is necessary to ensure that the robotics is maintained and repaired efficiently so that the operation can continue with minimal interruption.
Let’s Get Global 🌎
Ship Shipping GIF By The Guardian via GIPHY
🚢 China’s Huawei is looking to fuel sales growth. Huawei is a Chinese multinational technology company that specializes in telecommunications equipment and consumer electronics and is one of the largest telecommunications equipment and smartphone manufacturers in the world. It provides a range of products and services in the areas of enterprise networking, data center, cloud computing, and other technology solutions, but has faced controversy and restrictions in some countries due to concerns about potential national security risks associated with its products and services. Now, the company is refocusing its efforts on the busiest ports and factories to advance the logistics systems in the country.
🐰 Lunar New Year hints at renewed port congestion after covid policies have been lifted. China’s “zero-covid” policies created massive lockdowns that softened the container delays and port congestion issues over the past few years. Now that those policies have been lifted, it may mean those supply chain problems are being renewed. The Lunar New Year is a peak season for consumer spending and retailers stock up on goods before the holiday, which leads to an increase in imports. Another reason for port congestion during the Lunar New Year is that many people travel to be with their families during the holiday, and this can lead to increased demand for air and sea freight services.
🏭 Industrial near-shoring trend is only growing. Strained supply chains are being forced to take their industrial efforts south of the border in Mexico, creating pressure on cross-border spot rates. Rising labor costs in Asia - particularly China - are perpetuating the issue. China was once a traditionally low-cost manufacturing option for many companies, but as wages and other labor-related costs have risen and companies are forced to look elsewhere to reduce costs. Shipping goods from Asia to other parts of the world can be very expensive and time-consuming, especially when factoring in transit times, customs clearance, and tariffs. Near-shoring to Mexico allows companies to reduce these costs and increase speed to market.
iLevel With You 🏡
More topics for the average American household to consider…
💊 Amazon unveils a prescription drug discount program, RxPass. RxPass is the company’s latest launch that will provide a subscription service to customers who already pay for Prime memberships. Those customers will have access to approximately 50 generic medications for a flat fee of $5/month. This program will not utilize insurance, Medicaid, or Medicare, but will be available to customers in 42 states and Washington D.C. RxPass will be competing with Mark Cuban CostPlus Drug Co., another subscription service that may be offering a more diverse option of drugs for less cost to the customer.
💸 The Conference Board’s Leading Economic Index (LEI) is warning of incoming recession. The LEI is a composite economic indicator that is designed to predict future economic activity. It is composed of several individual indicators that are considered to be leading indicators of economic growth, such as stock prices, building permits, and the money supply. The index is intended to provide a comprehensive picture of the current state of the economy and to signal turning points in the business cycle. Unfortunately, the LEI dropped for the tenth month in a row, declining in December by another percent. The expected decline was 0.7%.
🥾 Dr. Martens facing significant operational issues at jammed LA DC. Dr. Martens is temporarily opening three warehouses in Los Angeles to assist with the flux of inbound shipments clogging its distribution center in Los Angeles, California. The LA-based distribution center was opened last year to support the company as it moves toward a more efficient e-commerce fulfillment process. The company announced that its most experienced executives and global supply chain teams are triangulating in Los Angeles to ensure that the company’s plans are successfully implanted going forward.
🥊 Walmart makes another move on Amazon’s market share: small businesses. Walmart is targeting customers who “shop small” by creating Walmart Business, a website that caters to small and midsize companies. This website will focus on selling office supplies, furniture, food, and electronics from smaller companies - tackling Amazon’s niche. Other competitors who are being encroached upon with the launch are Staples Inc. and Costco Wholesale Corp. The company will also be offering Walmart Business+, a corporate option attached to its current Walmart+ membership program, meant to rival Amazon Prime membership.
🗣️ Chatbot Technology is on the rise, even in the supply chain industry. Chatbots can automate routine tasks such as order tracking, inventory management, and customer service, freeing up human resources for more complex and strategic tasks. Chatbots can interact with customers 24/7, providing them with real-time information on their orders, delivery status, and other relevant details. This improves customer service and increases customer satisfaction and loyalty. They also process large amounts of data quickly and accurately, making it easier to manage and analyze data in real time, which can improve the overall efficiency of the supply chain.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚂 Shippers are wary, but JB Hunt predicts a 2023 rail boom. JB Hunt primarily operates in the trucking and intermodal freight transportation industries, providing transportation and logistics services to a wide range of customers, including retail and consumer goods companies, manufacturers, and distributors. The company also provides dedicated contract services, flatbed, and specialized transportation, as well as brokerage services. This carrier is expecting the intermodal segment of the transportation industry to have its rebound in 2023, regardless of the unpredictable nature of the railroads.
🚛 Freight trucking rates are still declining. A decline in freight trucking rates generally means that the demand for trucking services is weaker than the supply of available trucking capacity. This can happen for a variety of reasons, such as a slowdown in economic activity, increased competition among trucking companies, or a surplus of new trucking equipment coming into the market. When freight trucking rates decline, it can be a sign of a weaker economy and it can put pressure on trucking companies to cut costs and reduce prices in order to compete for business. This can lead to a decline in profitability for trucking companies and can cause some to go out of business.
😷 Companies can pivot to avoid future supply chain issues due to Covid-19. Diversifying supplier and production bases can help to reduce the risk of disruptions caused by the pandemic in a single location. By having multiple suppliers and production facilities in different locations, companies can reduce their dependence on a single point of failure. Companies can also increase their inventory levels to have a buffer against supply chain disruptions. This can help to ensure that they have enough stock to meet customer demand even if there are delays in the supply chain.
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.