Slice n’ dice: Amazon CEO confirms 18k job cut
Good morning! Happy Friday, supply chain superheroes! It's time to kick off another amazing day of optimizing logistics and streamlining operations. Let's make it a productive and successful day! 🔥
Two months ago, rumors were swirling that approximately 10,000 Amazon employees were on the brink of being laid off. Amazon CEO Andy Jassy is looking to quell those rumors… the real number of employees being laid off is going to be around 18,000.
Amazon isn’t the first tech company to be trimming up its workforce. The layoffs are likely due to the annual planning process in place at Amazon - a company that has “hired rapidly over the last few years”, according to Jassy.
Check out today’s featured article from Freight Waves to read about the internal memo that was publicly released by Amazon and how one of the largest rounds of layoffs in history could affect the future of Amazon… and the economy itself. ☕️
Featured Article:
Amazon CEO confirms company is cutting over 18,000 jobs | Freight Waves
“In November, a report alleged that Amazon (NASDAQ: AMZN) would lay off around 10,000 employees in a round of peak-season job cuts. Now, the figure is confirmed to be significantly higher.”
Artificial Intelligence & Logistics 🤖
Is 2023 ready for breakthrough Artificial Intelligence advancements?
In 2022, Artificial Intelligence made some serious progress. The prospects of artificial intelligence in 2023 was grown to massive proportions and industry leaders such as Greg Brockton and Elon Musk are going head-to-head over whether that can be classified as a “good thing” or not.
It is difficult to predict exactly how artificial intelligence (AI) will benefit industries in 2023, as the pace of technological change can be unpredictable. However, it is likely that AI will continue to be a transformative technology that impacts a wide range of industries in the coming years. Artificial Intelligence can create better automation of tasks, improved decision-making, personalization, and predictive maintenance.
Overall, AI has the potential to bring significant benefits to industries in the coming years, and it is likely to continue to be a driving force in technological innovation.
Retail & Business Strategy 🛍️
Craft retailer Joann’s is counting on declining ocean rates for savings
Joann’s, the popular craft retailer that’s located in strip malls across the country, is looking to accumulate $15 to $20 million in savings within the next fiscal quarter. President and CEO Wade Miquelon is highlighting the company’s expectation of lower ocean expenses playing a big role in those financial goals. CFO Scott Sekella joined Miquelon on a Q3 earnings call, explaining that the company was hoping to amass a $200 annual cost reduction goal by the end of the fiscal year in 2025.
Falling ocean rates can help retailers save money by reducing the cost of transporting goods from overseas. When ocean shipping rates are low, retailers can import goods from other countries at a lower cost, which can help them reduce their overall expenses. For example, if a retailer imports a large volume of goods from China and the cost of shipping those goods by ocean freight decreases, the retailer will pay less for transportation. This can help the retailer increase its profit margin or pass on some of the savings to customers by offering lower prices.
Let’s Get Global 🌎
Las Vegas Raiders Football GIF By NFL via GIPHY
🔥 Southeast Asia’s e-commerce market is growing rapidly. As e-commerce has grown in Southeast Asia, there has been an increased demand for logistics services such as package delivery, warehousing, and fulfillment. Logistics companies can capitalize on this demand by expanding their operations and offering a wide range of services to e-commerce companies. While the region’s e-commerce is still relatively young, there are many opportunities for logistics companies to innovate and find new ways to improve their operations. There is also a significant opportunity to diversify revenue streams and reduce their reliance on traditional brick-and-mortar retail. This can help logistics companies weather economic downturns and other disruptions to the market.
🌎 Gartner reports 88% of small/medium businesses have already begun nearshoring. Nearshoring refers to the practice of moving business operations or manufacturing facilities to a location that is closer to the company's primary market - typically, to a different region within the same country or to a neighboring country. Nearshoring is often seen as an alternative to offshoring, which refers to the practice of moving business operations or manufacturing facilities to a location that is farther away and typically involves outsourcing to a different country. Gartner-owned Capterra, a platform that connects businesses to technology that serves their needs, publishes the study that surveyed 300 U.S. supply chain professionals.
🛻 General Motors Co. steals the crown from Toyota Motor Corp. While both automakers had double-digit increases in Q4 American sales, GM’s grew by 3% and rounded out at a solid 2.3 million units sold. Toyota had narrowly beaten out the competition in 2021 but instead posted a total of 2.1 million in Q4. These amounts are staggering as higher financing costs continue to result from the Federal Reserve’s continuous interest rate hikes. Financing these new or used vehicles is more expensive than ever for U.S. consumers.
iLevel With You 🏡
More topics for the average American household to consider…
🤖Automation is the future of the food supply chain. The current food supply chain is often cited as wasteful and unsustainable - and commonly is cited as the culprit for climate issues by environmentalists. Automation can help make the food supply chain more sustainable by reducing energy use, waste, and water consumption and improving food safety. For example, automated warehouses can reduce energy use by using sensors and algorithms to optimize lighting and heating/cooling systems. Automated irrigation systems can help optimize water use in agriculture, ensuring that crops receive the right amount of water at the right time, which can help conserve water resources.
💪 St. Louis, MO’s freight network has a strong infrastructure after 2022 growth. Lying in a strategic location at the crossroads of several major transportation corridors in the central United States, St. Louis is easily accessible by road, rail, and river. This easy accessibility makes the area a convenient place to transfer goods between different modes of transportation. St. Louis is also home to several major logistics companies and transportation hubs, including the Lambert-St. Louis International Airport and the Union Pacific Railroad's Gateway Yard. These facilities make it easy for businesses to ship goods in and out of the region, which has helped make St. Louis a key hub for global freight.
🧠 Looking for a webinar to brush up on your supply chain knowledge? Look no further: the Flexport Editorial Team compiled a list of ten webinars available to attend if you’re a supply chain professional looking for knowledge. Informational webinars can provide valuable insights into emerging trends and developments in the supply chain industry. By attending these webinars, professionals can stay up-to-date on the latest technologies, best practices, and regulatory changes that may impact their work. These webinars also provide an opportunity to enhance skills, network with peers, and access industry experts.
GET SMART 🧠
Ramp up that brain power for these advanced topics…
🥊 Logistics managers should prepare to combat inflation in creative ways in 2023. There are several strategies that logistics managers in the supply chain can use to combat inflation. Logistics managers can try to negotiate with suppliers to get lower prices for raw materials and other supplies. By using just-in-time inventory management, logistics managers can reduce the amount of money tied up in inventory, which can help offset the impact of rising prices and use multi-sourcing to spread their risk across multiple suppliers and take advantage of any price differences between them.
😁 Beneficial cargo owners are on the rise. A beneficial cargo owner (BCO) is a company that owns the cargo being shipped and is responsible for arranging transportation for that cargo. BCOs are important in the logistics industry because they are the companies that generate demand for logistics services. Without BCOs, logistics companies would not have any cargo to transport, and the logistics industry would not exist. They are responsible for ensuring that their cargo reaches its destination on time and in good condition.
🔨 Manufacturing took a tumble at the close of 2022. According to the Institute for Supply Management (ISM) Manufacturing Report on Business, the key metric read of PMI came in at 48.4 in December, falling 0.6% from November’s numbers. The report is based on a survey of purchasing and supply management professionals at more than 300 manufacturing companies in the United States. It provides information on economic indicators such as new orders, production, employment, supplier deliveries, and inventories.
👩🔧 The design of supplier diversity programs is being called into question. These programs are intended to increase the number of suppliers from underrepresented groups, such as minority-owned businesses, women-owned businesses, and small businesses. This aims to create a more inclusive and equitable business environment and tap into the innovation and creativity that diverse suppliers can bring to the table. Many companies believe that a diverse supplier base can also lead to a stronger and more resilient supply chain. However, simply dumping money into these programs will not make a company more profitable.
🚢 The Baltic Dry Index records its “worst day” since 1984. The Baltic Dry Index (BDI) is a measure of the price of shipping dry bulk cargo, such as coal, iron ore, and grain. It is based on a survey of shipping rates for more than 20 routes around the world, and it is published by the London-based Baltic Exchange. Widely regarded as a leading indicator of economic activity, this drop may indicate that demand for raw materials is slowing and that the global economy is slowing down. The BDI is often used by economists, investors, and policymakers to gauge the health of the global economy and to predict future economic trends.
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.