🕵🏻♂️ 📦 Prime Probe: Sanders Safeguards
Good morning! We are delighted to bring you the latest edition of the workday dash, where we explore the intricacies of supply chain management and celebrate an exciting holiday. National Kissing Day reminds us of the power of meaningful interactions, not only within our personal lives but also within the intricate network of supply chains that drive our global economy.
Pucker up, and let’s journey through the workday dash on this lovely Thursday morning. 💋
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Senator Bernie Sanders has announced a probe into Amazon's safety practices, deeming the company one of the country's "most dangerous" employers. This investigation comes in the wake of mounting pressure on Amazon regarding its treatment of workers. A recent report highlighted higher injury rates in Amazon warehouses compared to similar facilities. Amazon, however, disputes these claims, stating it has invested heavily in safety improvements and reduced injuries by 23% in the US since 2019.
The report, published by the Strategic Organizing Center with government data, revealed a 70% higher injury rate at Amazon warehouses in 2022 compared to non-Amazon warehouses. In addition to this report, the US Labor Department has issued citations against the company, citing concerns about ergonomic hazards. Amazon has appealed these citations.
Check out today’s featured article from BBC to read more about the investigation into the e-commerce giant, and what Bernie Sanders has planned in the upcoming weeks. Will they find something that will ruin Amazon? Why are the injury rate is much higher at amazon warehouses?
Featured Article:
Bernie Sanders announces Amazon safety investigation | BBC
“Amazon is facing an investigation by the US Congress over its warehouse safety practices, adding to pressure it faces over its treatment of workers.”
Current News & Bankruptcy
Woke = Broke?
Bud Light, produced by Anheuser-Busch, is the latest company caught in America's ongoing culture wars. Other brands, including Disney, the National Football League, Nike, Target, and Chick-fil-A, have faced similar controversies. Consumers' Research, a firm that has spearheaded campaigns against American Airlines and Levi's, highlighted a growing dissatisfaction among consumers with corporations imposing their values.
Boycotts in response to corporate stances are seen on both sides of the political spectrum. Under Armour and Goya faced backlash after their CEOs expressed support for former President Donald Trump. The effectiveness of these boycotts is a subject of debate. Bud Light has already experienced a significant decline in sales, losing its position as the top-selling beer in the US, with a nearly 25% drop in sales leading up to June 3. An analysis by JP Morgan projected a 26% decline in Anheuser-Busch's earnings for the year, with a full recovery not expected until the 2024 fiscal year. The term "woke," originally used to describe awareness of social injustice, has become a pejorative term among right-wing Republicans, encompassing various issues like climate change and support for minorities. Boycotts can have immediate financial impacts on companies, but the long-term damage to reputation and loss of loyal consumers can be even more detrimental. Surveys suggest that many Americans consider a brand's stance on issues when making purchasing decisions. Nike, for example, faced backlash and product destruction due to its support of Colin Kaepernick's racial justice protests, but ultimately sales increased, and the company's stock prices rose.
EV & Car Industry
Tesla Charging Network Nears Industry Standard Status
Rivian, an electric vehicle manufacturer, has announced that it will follow in the footsteps of General Motors and Ford by joining Tesla's charging network in the coming year. As part of this integration, Rivian will also adopt Tesla's charging connector, marking a significant step towards establishing it as the industry standard.
While existing Rivian vehicles will require an adapter to connect to Tesla chargers, the company plans to equip its vehicles manufactured from 2025 onwards with a standard Tesla charging port. This move aligns with the auto industry's growing consideration of Tesla's connector, known as the North American Charging Standard. Currently, most automakers, excluding Tesla, employ the CCS connector developed in collaboration with the Society of Automotive Engineers. Tesla's Superchargers hold appeal for other automakers due to their extensive direct current fast-charging infrastructure in the US, strategically located along major travel routes. Consequently, several automakers are exploring the transition to Tesla's connector. Stellantis CEO Carlos Tavares stated that his company's US teams are evaluating the switch and will make a decision in the coming weeks. However, concerns exist regarding dependency on Tesla as a potential drawback.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚗 TuSimple Achieves Landmark Milestone with First Successful Autonomous Road Test in China. TuSimple, an autonomous technology developer, has achieved a significant milestone by completing China's first fully autonomous semi-truck runs on open public roads without a human driver or intervention. The successful "driver-out" test took place on designated public roads approved by the Shanghai government, covering approximately 62 kilometers within the port area, including complex road and weather conditions.
💧 Parched Pathways: Panama Canal Faces Century's Worst Drought. The Panama Canal, facing its driest period in over a century, has imposed transit restrictions since May, leading to reduced container loads for large vessels. As a result, global supply chains are likely to experience delays and increased costs, according to The Wall Street Journal. The restrictions are set to expand in the following weeks, with vessels' allowable draft being reduced from the peak level of 50 feet to 43 feet. While restrictions during the dry season are not uncommon, this year's drought is exceptionally severe, with water levels in the canal's Gatún Lake predicted to reach record lows next month.
iLevel With You 🏡
More topics for the average American household to consider…
🐟 Walmart Tightens Control on Tuna Supply Chain. Walmart has announced that it is implementing stricter standards for its tuna supply chain in an effort to combat issues that threaten the ocean ecosystem, including illegal fishing and abandoned fishing equipment. With over one-third of the world's fisheries operating at unsustainable levels, Walmart aims to improve transparency and data gathering by requiring tuna suppliers to source from vessels with 100% monitoring and fisheries that practice "zero high seas transshipment." High-seas transshipment, the transfer of fish or fish products between vessels at sea or in port, is a major contributor to the illegal fish market.
🛄 White House Launches Travel Blitz with Significant Infrastructure Announcement on Monday. The White House is set to launch a travel blitz next week, with officials visiting more than 20 states over a three-week period. The campaign aims to promote the administration's legislative accomplishments and will begin with a "major infrastructure funding announcement" from President Biden on Monday. During the tour, President Biden and other administration leaders will directly engage with communities that have benefited from his "Investing in America" agenda. The travel blitz will coincide with the Fourth of July recess when lawmakers are out of town. Officials will highlight key legislative achievements, including the Inflation Reduction Act, the CHIPS and Science Act, and the Bipartisan Infrastructure Law. The aim is to contrast these accomplishments and economic investments with the House GOP's efforts to repeal certain provisions of the Inflation Reduction Act, which was passed with only Democratic votes last August.
👟 Keen Footwear: Embracing Control in the Supply Chain for Success. Keen Footwear stands out by owning around 40% of its production, including factories in Portland, Oregon, Thailand, and the Dominican Republic. This ownership approach not only aligns with the company's values but also helps achieve supply chain visibility and supports its focus on product quality, durability, environmental goals, and sustainability. By controlling the controllable, Keen has navigated through supply chain disruptions and maintained operations during challenging times. During the pandemic, Keen's owned facilities remained operational, even producing masks for its workers. The company's tight control over its supply chain allowed for flexibility and agility, enabling it to weather the storm and quickly adapt production to changing circumstances. Keen's ownership provides a strong layer of resilience, as highlighted by John Evons, the brand's president.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔍 Exploring the Top 10 Largest Supply Chains. The top 10 largest automotive manufacturing supply chains include Volkswagen, Toyota, NRM Alliance (Nissan-Renault-Mitsubishi), General Motors (GM), Honda, Ford, Hyundai, Stellantis, BMW, and Mercedes-Benz. Historically, Henry Ford is credited as the founding father of mass manufacturing, reshaping industrial processes with the mass-produced Model-T. Yumi Otsuka, CEO of Toyota, introduced the just-in-time 'lean manufacturing' approach, leading to efficiency savings and elevating Toyota's position in the auto-makers league table. Both Ford and Toyota continue to be influential figures in the automotive manufacturing and supply chain industries.
⬆️ Fed Research Identifies Main Culprit Behind US Inflation Spike. The breakdown of global supply chains during the pandemic has been widely recognized as a major driver of inflation. According to a research paper from the Federal Reserve Bank of San Francisco, approximately 60% of the surge in prices in the United States since 2021 can be attributed to the logistics crunch. Bottlenecks in logistics networks, increased transport costs, and shortages of goods have fueled inflation, pushing the US inflation rate to a four-decade high in mid-2022. The study highlights the significant impact of supply chain disruptions on inflation and suggests that addressing these challenges is crucial to mitigating inflationary pressures.
🔋 Info that you should know before buying a used EV. The used electric vehicle (EV) market is gaining attention due to attractive tax breaks and incentives available to buyers. The Inflation Reduction Act in the United States offers up to $4,000 in federal tax rebates for the purchase of a used EV, and many states provide additional discounts. However, despite the benefits, dealerships often lack knowledge about these perks, creating challenges for buyers. Experts suggest that used EVs can be a great deal as they offer fuel savings, potentially lower maintenance costs, and reduced depreciation. To accelerate the adoption of EVs, it is crucial to make more used EVs available, improve awareness among dealerships, and simplify the process of accessing tax breaks.