🚦 Slow Lane Audit
Good morning! Happy World Environment Day! Welcome to The Workday Dash, where we're all about exploring the intersection of sustainability and the supply chain world. Grab your favorite cup of coffee, get comfy, and let's embark on a journey to discover how we can build a greener and more efficient supply chain together. Let's dive in! ☕️
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An audit by the Department of Transportation Inspector General reveals that the National Highway Traffic Safety Administration's Office of Defects Investigation (ODI) faces limitations in responding to rapidly evolving auto safety risks due to delays in investigating safety defects. The audit highlights issues such as the lack of an integrated computer system for probes, inconsistent prioritization of safety problems, and inadequate documentation practices. These weaknesses increase the potential for delays in addressing critical safety concerns and hinder effective communication with the public and stakeholders.
Check out today’s featured article from AP News to read about the delays and what they mean for vehicles on the road, today and in the future. Can the NHTSA improve its investigative process?
Featured Article:
Audit finds National Highway Traffic Safety Administration auto safety defect probes take too long | AP News
“The U.S. government agency charged with keeping the roads safe is slow to investigate automobile safety defects, limiting its ability to handle rapidly changing or severe risks, an audit made public Thursday found.”
Artificial Intelligence & Logistics 🤖
The Changing Landscape of Transportation: AI's Impact on the Future of Logistics
Artificial intelligence (AI) is revolutionizing the transportation industry, particularly in the areas of autonomous vehicles, intelligent traffic management, and predictive maintenance. Companies like Waymo, Tesla, and Baidu have already made significant advancements in autonomous vehicle technology, reshaping transportation systems and paving the way for new investment opportunities. Intelligent traffic management, enabled by AI, can optimize traffic flow and reduce congestion, benefiting both individuals and logistics companies.
Predictive maintenance, driven by AI algorithms, improves efficiency by analyzing sensor data and predicting maintenance needs, ensuring minimal vehicle downtime and increased profitability. While the full impact of AI on transportation may take time, it presents significant potential for economic value and transformative changes in the way we transport goods and people.
Weather & Climate Change 🌧️
Navigating Global Water Logistics Constraints
Supply chain disruptions caused by water logistics constraints have recently made headlines, from the Suez Canal blockage to the weight and draft restrictions in the Panama Canal. The decrease in water levels due to severe drought has forced vessels to reduce their loads and shippers to face higher rates, leading to increased costs and variability in lead times. As the drought worsens, approximately 6% of global maritime trade passing through the Panama Canal is at risk.
To mitigate the impact of these constraints, supply chain leaders must invest in network optimization technologies that continuously assess transportation lead times, costs, and plan feasibility. Close collaboration between finance, procurement, manufacturing, and planning is crucial, with monthly evaluations preceding the Sales and Operations (S&OP) meetings. Aligning these functions and improving reliability amidst variability requires modeling and shared review, moving beyond spreadsheet analysis to consider feasibility, lead times, and logistics constraints. Utilizing network design technologies becomes essential to effectively navigate these challenges.
Let’s Get Global 🌎
🇲🇽 FourKites: Nearshoring Shifts Trade Lanes from China to Mexico. Nearshoring, driven by trade and political tensions with China, is gaining momentum as U.S. companies invest in minimizing supply chain disruption. Shipment volumes from Mexico to the U.S. have increased by 20% while dwell times have decreased by 25% compared to two years ago, particularly in the food & beverage and automotive sectors. While the move towards nearshoring is a long-term investment approach, it offers advantages in terms of infrastructure, talent, freight costs, and raw material supplier locations. The trend could also benefit railroads connecting Canada, the U.S., and Mexico, such as Canadian Pacific Kansas City (CPKC), although the full impact may take time due to necessary investments and infrastructure improvements.
🇮🇹 Italy Launches €1 Billion Sovereign Fund to Strengthen Critical Supply Chains. Italy has unveiled plans to establish a €1 billion sovereign fund to support strategic companies and enhance domestic production, aiming to strengthen key supply chains. The fund aims to stimulate the growth and consolidation of national strategic supply chains, including critical raw materials procurement. The government's draft law also includes measures to combat counterfeit products and protect intellectual property, as Italy and the European Union ramp up efforts to address China's increasing economic influence. Additionally, Italy is exploring options to redirect unused pandemic reconstruction funds toward bolstering its energy sector for improved energy security and self-sufficiency.
🚛 FMCSA Introduces Truckers-Focused Program to Raise Awareness on Human Trafficking. FMCSA has launched the "Your Roads, Their Freedom" campaign to raise awareness about human trafficking among commercial motor vehicle (CMV) drivers in the United States. The campaign aims to provide drivers with information on identifying and reporting suspected human trafficking incidents. With over 1,400 calls made by truckers to the U.S. National Human Trafficking Hotline, the campaign seeks to leverage the transportation industry's extensive workforce to combat this heinous crime.
iLevel With You 🏡
More topics for the average American household to consider…
💰Examining the Debt Ceiling Deal: 5 Victors and 5 Vanquished. The debt ceiling battle of 2023 ended with a relatively normal budget deal reached between President Joe Biden and House Speaker Kevin McCarthy, despite the heated rhetoric and talk of default. The deal passed both the House and the Senate with bipartisan support, although neither party got everything they wanted. The outcome revealed the continued popularity of the budget status quo in Washington, while also highlighting winners such as Joe Biden and Kevin McCarthy, and losers such as liberal commentators and serious deficit hawks. The debt ceiling itself remains in place, as the prospects for its abolition appear unlikely without a more severe crisis.
🇺🇸 Surprising Surge in US Job Growth as Economy Adds 339,000 New Positions in May. US job growth defied expectations in May, with employers adding 339,000 jobs, surpassing the forecasted 190,000 jobs. The labor market demonstrated resilience despite rising interest rates, declining economic growth, and persistent inflation. However, a separate report indicated a slight increase in the unemployment rate to 3.7% and a slowdown in wage growth, highlighting the mixed nature of the job market's performance.
👔 Addressing the labor challenge in logistics is a significant undertaking. The return to office work amid the pandemic has led to increased job turnover in the logistics industry, including supply chain roles that already face high-stress levels and labor shortages. Factors contributing to employee churn include increased workload, limited career opportunities, and a lack of recognition. To address this, companies can focus on employee retention through strategies such as offering competitive salaries, providing training and development opportunities, and leveraging technology to improve work processes and enhance staff satisfaction. In-demand skills in the supply chain marketplace include supply planning, supply chain analytics, and supply chain strategy.
🚛 California Bill Requires Human Operators for Self-Driving Trucks. California lawmakers have voted in favor of Assembly Bill 316, which would require trained individuals to be present in autonomous semi trucks and big rigs. Industry representatives argue that the legislation interferes with ongoing rule-making processes and fails to address the potential benefits of autonomous technology in improving road safety and reducing human errors.
🇺🇸 Supreme Court Decision Favors Employers in Case Involving Truck Drivers Who Struck Work. The Supreme Court handed a victory to employers in a labor dispute case on June 1, ruling against unionized truck drivers who walked off the job with their trucks filled with wet concrete. The decision, supported by both liberal and conservative justices, unitedly opposed the drivers' actions and found that the union failed to take reasonable precautions to protect the company's property during the strike. The ruling has raised concerns among labor advocates about the erosion of the right to strike and the impact on future labor law development.
🧠 Big Companies Taking Stands on Political and Social Issues. The rise of big companies taking stances on political and social issues is highlighted by recent examples of Target, Bud Light, Disney, Amazon, Microsoft, Starbucks, Nike, and Levi Strauss facing both support and backlash for their positions. This shift is driven by investor pressure, employee influence, and customer expectations for companies to address social and environmental challenges. However, taking a stand can also be risky, as companies may face opposition from customers with differing beliefs. Despite the potential backlash, many companies continue to embrace their values and prioritize social impact.
✈️ Boeing CEO Expresses Frustration with Slow Progress in Resolving Supply Chain Constraints. Boeing CEO, Dave Calhoun, expressed frustration with the slow progress in resolving supply chain issues, despite a rebound in airlines' demand for planes. While certain aspects of the supply chain, such as engine forgings and castings, have shown improvement, Calhoun believes that meeting customer demand for new planes will still be constrained in the next five years. Boeing is actively monitoring key parts from suppliers but unexpected problems can still arise, impacting delivery schedules. The company is currently dealing with a bracket installation defect, but Calhoun believes it is manageable and won't prevent production ramp-up. Both Boeing and Airbus anticipate supply chain constraints persisting until at least the end of 2024.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚛 Congress Evaluates New Regulations on Parking, Weight Limits, and Training. Trucking stakeholders are supportive of proposed regulatory changes approved by the House Transportation and Infrastructure Committee, including the Truck Parking Improvement Act, driver training enhancements, and weight tolerance adjustments. The bills aim to strengthen the supply chain and freight industry. However, industry groups have expressed concerns about potential safety risks and the impact on supply chain challenges. The Federal Transit Administration is also seeking public comment on updates to the National Public Transportation Safety Plan, while Congress is considering a bill to amend hydrogen vehicle weight limits.
🗼 The Search for an AI-Based Supply Chain Control Tower Platform. The COVID-19 pandemic exposed vulnerabilities in supply chains, prompting businesses to seek solutions such as AI-based control tower platforms to enhance visibility, address disruptions, and optimize costs. Companies are recognizing the need to diversify supply bases, invest in AI solutions, and strengthen their supply chains to stay competitive. Control towers, equipped with real-time tracking and problem-solving capabilities, are crucial for effectively managing components, work-in-progress, and finished goods. However, successful implementation requires a comprehensive operating model that incorporates the right people, processes, data governance, and decision-making frameworks.
🧤 Enhancing Customer Loyalty through White Glove Service. White glove service plays a crucial role in reducing delivery anxiety for customers, particularly when it comes to shipping high-value items. By providing a stress-free delivery experience, white glove services can enhance customer satisfaction and loyalty. To achieve this, businesses need to focus on making drivers happy, serving customers in their preferred time slots, and providing a branded tracking experience. This can be achieved through route optimization, realistic estimated time of arrivals (ETAs), multiple time slot options, transparent communication, and last-mile logistics solutions. Investing in these areas can lead to improved customer loyalty and satisfaction in the white glove service industry.
🧊 Temperature-Controlled Freight is King in the Supply Chain. The complexity of coordinating the transportation of temperature-sensitive goods through the cold chain is a daunting task for startups and established suppliers alike. Temperature-controlled freight plays a crucial role in ensuring the quality and safety of perishable items such as food, beverages, and pharmaceuticals. Challenges such as seasonal demand spikes, strict retailer requirements, compliance with safety regulations, and the need for reliable logistics partners all contribute to the importance of temperature control in the supply chain. Collaboration, innovation, and sustainability efforts are key factors in successfully navigating the complexities of temperature-controlled freight and maintaining the integrity of perishable products throughout their journey.
🚚 FMCSA Calls for Increased Regulation of Tests for New Truck Drivers. FMCSA has released a report to Congress explaining why it is not making permanent a waiver that allowed certified third-party instructors to administer CDL knowledge tests for truck drivers. The agency cites concerns about fairness and fraud, emphasizing the need for regulatory oversight and additional safeguards to ensure the integrity of the CDL knowledge testing program. Instead of making the waiver permanent, FMCSA plans to propose minimum regulatory standards and safeguards for states that choose to allow knowledge testing by third parties.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.