🔥 Autonomous atrocity
Good morning! Today, on this special occasion of National Simplicity Day, we pause to reflect on the profound impact simplicity can have on our supply chains. National Simplicity Day, celebrated annually on July 12th, honors the birthday of Henry David Thoreau, a prominent philosopher, writer, and advocate for simple living. Thoreau's timeless words continue to inspire us to examine our lives, both personally and professionally, and seek ways to simplify and streamline our processes. In the realm of supply chain and logistics, simplicity holds immense value. With the ever-increasing complexities of global trade networks, digital advancements, and customer demands, it is crucial for businesses to embrace simplicity as a guiding principle. By doing so, we can enhance efficiency, reduce waste, and improve the overall sustainability of our supply chains.
As we embark on this journey of simplicity, let us remember that small changes can make a significant difference. By embracing simplicity and transparency in our supply chains, we have the power to drive positive change, promote ethical practices, and build a more sustainable future. ☺️
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Protesters in San Francisco have taken a simple yet effective approach to disrupting driverless cars in the city. Members of the group called Safe Streets Rebels have been placing traffic cones on the hoods of autonomous vehicles, disabling them temporarily. The protest comes in response to recent incidents involving driverless cars, including the death of a dog and collisions with other vehicles. The campaign, known as "The Week of Cone," coincides with the California public utilities commission's vote on expanding driverless car services. While Waymo and Cruise, the primary companies operating robo-taxis, have criticized the protesters' actions as vandalism, the activists argue that they are raising concerns about the safety issues surrounding autonomous vehicles. San Francisco city officials and police have also expressed concerns about the protest, citing potential traffic congestion and the need for tech experts to reset disabled vehicles.
Safe Streets Rebels aims to promote pedestrian and cyclist safety and advocate for increased funding for mass transit. The group's focus on driverless cars marks a departure from their previous targeting of human drivers. The cone protest is scheduled to conclude on July 9th, but it has gained popularity and may continue beyond that date.
Check out today’s featured article from The Daily Mail to read more about what San Fransisco natives are doing to stop driverless cars in their tracks. Will autonomous cars not be as successful as people once thought? What will the large autonomous car companies do in order to combat this new trend?
Retail & Distribution
Walmart Unveils Largest Fulfilment Center to Strengthen E-Commerce Expansion
Walmart has opened its largest distribution center, 2.2 million square feet, in McCordsville, near Indianapolis, as part of its ambitious e-commerce strategy. The facility is strategically located to enable Walmart to deliver to 95% of the US population within two days of placing an order. With this distribution center and three others, Walmart estimates it can serve 75% of the US population. The McCordsville Center will primarily handle online purchases, including inventory from Walmart and third-party sellers on the Marketplace platform.
The company aims to incorporate more automation and technology in these fulfillment centers, reducing labor requirements. Walmart's e-commerce growth has been strong, with a 27% increase in US e-commerce sales in Q1 2023, surpassing its overall sales growth of 8.2%. The opening of the McCordsville distribution center marks a significant milestone in Walmart's supply chain modernization journey and underscores its determination to challenge Amazon in the US e-commerce market.
Retail & Distribution
PepsiCo Releases First ESG Report, Highlighting Sustainability and Diversity Goals
PepsiCo's latest ESG report reveals the company's struggle to advance its plastic sustainability goals outlined in its pep+ (PepsiCo Positive) initiative. While the report shows progress in some areas, such as an increase in recyclable packaging and recycled content, PepsiCo faces challenges in reducing the use of virgin plastic and achieving its 2030 targets. The company aims to make all packaging recyclable, compostable, biodegradable, or reusable by 2025, but the limited and costly recycled plastic material supply has impacted their progress.
PepsiCo also acknowledges the need to scale new business models, including reuse and refill, to eliminate single-use packaging materials. In terms of emissions, the company reduced its direct emissions but experienced an increase in value chain emissions due to business growth. PepsiCo aims to achieve a 40% reduction in Scope 3 emissions by 2030. The report also highlights PepsiCo's diversity goals, including the representation of Black and Hispanic employees in managerial positions and gender equality in pay and leadership roles.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚢 US Container Import Volumes Show Marginal Decline in June, but Remain Higher Than Pre-Pandemic Levels. Descartes Systems Group's Global Shipping Report reveals that container import volumes in the United States slightly decreased in June compared to May 2023 but were significantly higher than pre-pandemic levels in June 2019. The report indicates improving global supply chain performance, with key challenges such as labor relations and port transit time delays showing signs of improvement. The National Retail Federation predicts that US container imports will reach their peak in August before gradually decreasing through September.
🌊 Sailing Through Decreasing Freight Rates. Freight rates have been declining more rapidly than anticipated, with some trade lanes already below 2019 levels. The global economy is experiencing a slowdown, except for a few countries like India. Predictions indicate slow trade and shipping for the US and globally, with limited opportunities for ocean carriers to reposition vessels for maximum revenue. If the drop in freight rates continues, there is a risk of carriers reducing or eliminating services, leading to potential availability issues and potential rate increases. This could disrupt the stability of the global supply chain, which has been recovering from the pandemic.
🛣 Import Cargo Volume at US Ports Set to Peak in August, but Labor Disputes Pose Concerns for Retailers. The Global Port Tracker report indicates that import cargo volume at major container ports in the United States is expected to increase towards a peak in August. While a tentative contract agreement has been reached at West Coast ports, potential labor disputes at ports in western Canada and a potential Teamsters strike against UPS pose concerns for retailers. The report also highlights a decline in import volumes compared to the previous year and urges parties involved in labor negotiations to avoid disruptive activities that could impact supply chains during the upcoming peak shipping season.
iLevel With You 🏡
More topics for the average American household to consider…
🚗 EV Auto Industry Struggles as Supply Outpaces Consumer Demand. The auto industry is facing a significant challenge as the supply of electric vehicles (EVs) outpaces consumer demand. Although interest in EVs is growing, potential buyers remain hesitant due to concerns about pricing and charging infrastructure. While automakers have produced a wide range of EV models, sales are not keeping up with the increased inventory, indicating a mismatch between supply and demand. However, with more charging infrastructure development and the projected price parity between EVs and gasoline vehicles by 2025, the industry remains hopeful for increased EV adoption in the future.
🚪 Expert Warns Back Door Supply Chain Cyberattacks Could Lead to Business Closure. Following the MOVEit ransomware cyberattack, a cybersecurity expert highlights the significant threat posed by supply chain cyberattacks, which have the potential to force organizations out of business. The attack targeted multiple companies, including PwC, Aon, BBC, British Airways, and more, impacting millions of people's data. The expert emphasizes the need for businesses to prioritize protection against supply chain attacks and suggests leveraging AI solutions to identify vulnerabilities within partner networks. Failure to address these vulnerabilities can result in financial losses, reputational damage, legal consequences, and potential business closure.
📉 Wholesale Used Vehicle Prices Experience Significant Decline, Set to Stabilize in Second Half of the Year. Wholesale used vehicle prices recorded their largest monthly decline since the start of the pandemic, signaling a potential stabilization in the market during the second half of the year. The decline in wholesale prices is expected to have a downward effect on retail prices in the coming months, as the market returns to a more balanced state. Despite the decline, retail used vehicle sales remain strong, although they were estimated to be 6% lower compared to last year due to the increased availability of new vehicles and higher interest rates. Cox Automotive predicts a slow and gradual recovery in wholesale prices to pre-pandemic levels by 2028.
👩⚖️ The Future of Diversity Initiatives in the Wake of the Supreme Court's Affirmative Action Decision. Corporations, which have already scaled back their diversity, equity, and inclusion (DEI) efforts launched in 2020, now face the question of whether the Supreme Court's ban on race-conscious admissions will lead them to further curtail these programs to avoid potential legal challenges. While the legal implications of the court's decision on higher education affirmative action do not directly apply to employment, the general hostility expressed towards race-conscious efforts may cause concerns among employers. However, the Equal Employment Opportunity Commission has clarified that employers can still implement DEI programs to ensure equal opportunity in the workplace.
👩🦳 Women in Trucking and Transportation: Making Progress in Key Roles, but Challenges Remain for Driver and Technician Positions. The Women In Trucking Association 2023 Index reveals that while women continue to make inroads in trucking and transportation, they still represent a low percentage of professional truck drivers and technicians. However, women hold higher percentages in other key departments such as dispatch, safety, HR, and executive positions. The index highlights the need for continued efforts to recruit and retain talented women in critical roles and emphasizes the importance of diversity and inclusion policies in the industry.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🎆 Independence Day Holiday Week Sees Decline in Spot Market Freight Rates and Volumes, with Flatbed Rates Showing Resilience. Spot market freight rates and volumes experienced a decline during the Independence Day holiday week, according to the Truckstop system. Broker-posted refrigerated and dry van rates fell, and load activity decreased significantly. However, flatbed rates saw a rare increase after five consecutive weeks of decline. Overall, load activity and rates were below previous years' levels, with flatbed being the only segment showing strength.
🤝The Impact of Technology on the Transformation of the Logistics Industry. The logistics industry has experienced significant changes due to advancements in technology. Technology has revolutionized operations, data analysis, collaboration, and customer service from manual processes to sophisticated software systems. However, challenges such as cybersecurity and the need for continuous adaptation remain, highlighting the importance of embracing innovation for long-term success in a rapidly evolving industry.
🚛 Near-Zero-Emissions Diesel Trucks on the Rise, Outpacing Electric Trucks. According to the Diesel Technology Forum, the number of near-zero-emissions diesel trucks on the road increased by 10.2% between 2021 and 2022. Diesel trucks equipped with advanced technology, such as particulate filters and selective catalytic reduction systems, now make up 57% of all commercial diesel trucks, while internal combustion engines power nearly 99.9% of the trucking fleet in the United States. Despite the growing interest in electric trucks, the dominance of diesel engines in the industry is expected to continue for years to come due to their continuous improvement and low-cost operation.
📈 Daimler Truck Sets Ambitious Revenue Growth Targets as it Shifts to Zero-Emissions Powertrains. Daimler Truck, the truck division of Daimler AG, has outlined its plans for a transition to zero-emissions powertrains and projected revenue growth of 40%-60% in the second half of the decade. The company aims to achieve an adjusted return on sales of above 12% by 2030 while raising its financial goals for 2023 and increasing its guidance for adjusted return on sales across all business units. Daimler Truck is also considering the inclusion of hydrogen internal combustion engines alongside diesel and battery-electric powertrains in specific customer use cases.
🧢 OOIDA President Debunks Driver Shortage Myth, Highlights Challenges Faced by Truckers in Overcapacity Market. OOIDA President Todd Spencer provides insight into the alleged driver shortage in the trucking industry, attributing it to the inability of large fleets to retain drivers rather than a true shortage. The influx of new drivers during the pandemic led to overcapacity, resulting in low shipping rates and financial struggles for many truckers. OOIDA is advocating for solutions to address issues such as detention pay, lack of parking spaces, and access to basic facilities for truck drivers.
🛠️ Upgrading Maintenance Skills Crucial for Widespread Electric Vehicle Adoption in Trucking Industry. As the trucking industry explores electric vehicles (EVs), maintenance shops face the challenge of upskilling workers to handle the complexities of EV powertrains. Understanding battery behavior, managing battery health, ensuring interoperability with chargers, and training technicians in high-voltage cable maintenance are crucial for successful EV adoption and maximizing the lifespan of EV batteries. Standardization, advanced battery management software, and bidirectional charging technology are emerging solutions to address these challenges and optimize EV usage in fleets.