Amazon slashes another 9,000 jobs
Good morning! Today we're celebrating National Puppy Day! Just like a well-run supply chain, puppies are all about efficiency: they can sniff out trouble, move quickly and gracefully, and are always eager to learn new tricks. Plus, they're just downright adorable. So, whether you're a seasoned supply chain veteran or just getting your paws wet, join us in celebrating our furry friends and all the hard work that goes into keeping things running smoothly. Let's fetch some news! 🐶
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This major layoff is the second round of the year for Amazon. In 2023 alone, over 19,000 workers have been affected by layoffs levied by the online retailer giant.
Despite the growing rage from former-employees, it’s important to note that Amazon, like any other company, may need to reduce costs to maintain its profitability. For example... If a department or team is not meeting its targets or is deemed unnecessary, the company may decide to lay off employees to reduce expenses. But… that doesn’t make it sting any less.
Check out today's featured article from SupplyChainBrain to read about the layoff by the tech giant. Are more employees at risk of being fired? And why would Amazon choose this route rather than maintaining its workforce?
Featured Article:
Amazon to Cut Another 9,000 Jobs in New Round of Layoffs | Supply Chain Brain
“Amazon is to cut 9,000 jobs across its global business, as the second big cull of staff at the online retailer this year, reports The Guardian".”
Company Culture & Diversity 🎉
Inclusion in the workplace can cut company attrition risk by 50%
Attrition risk refers to the possibility or likelihood of employees leaving a company or organization, either voluntarily or involuntarily, and the potential negative impact this could have on the organization's operations, productivity, and financial performance. Attrition risk is often associated with high turnover rates and can be influenced by various factors such as job satisfaction, work-life balance, compensation and benefits, company culture, and opportunities for career growth and advancement. Organizations often take measures to mitigate attrition risk, such as offering employee retention programs, conducting regular employee engagement surveys, and fostering a positive work environment that encourages employee loyalty and commitment.
By including every employee and celebrating diversity in the workplace, companies regularly reap the benefit of increased worker retention. Those in leadership positions need to understand that feeling valued and respected in the workplace is critical for improved motivation and the mental wellbeing of employees.
Fuel & Inflation ⛽️
Diesel price declines for the 7th consecutive week
Just this week, diesel prices have declined 6.2 cents. This dip has lowered the national average to less than $4.2 per gallon, and the per-barrel oil price dropping alongside it. In better news, federal data reports that the dollar per gallon will soon sink below $4. Just last week, the prices decreased by 3.5 cents. This drop means that diesel prices are an entire dollar less than it was last year at this time.
Context:
When diesel prices are lower, it generally means that the cost of transporting goods and people is lower as well. This is because diesel is a major expense for many transportation companies. Lower diesel prices can also lead to lower costs for industries that rely heavily on transportation, such as manufacturing and agriculture, as they often need to transport goods over long distances.
In recent years, there has been a lot of debate about the environmental impact of diesel fuel. Diesel engines emit more pollutants than gasoline engines, including nitrogen oxides and particulate matter, which can have harmful effects on human health and the environment. As a result, there have been calls for stricter emissions regulations and a shift towards cleaner energy sources, such as electric or hydrogen-powered vehicles. Additionally, the price of diesel is often subject to fluctuation due to global oil prices and geopolitical tensions. This volatility can make it difficult for businesses to plan and budget for fuel costs, which can have a significant impact on their bottom line.
Let’s Get Global 🌎
🇫🇷 French CMA CGM joins the car-carrying oceanic market. The France-based maritime carrier CMA CGM has already penetrated the air cargo and logistics market with profit, and now they are looking to expand again. The carrier is beginning to charter vessels to carry cars across the sea; a trade that is currently experiencing its "boom". However, CMA CGM is not the only carrier that has joined the fray. As rates have begun to soar, profits have become record-breaking and carriers are looking to invest in the latest industry money-maker.
🚢 February's U.S. Container import shows the largest monthly decline on record. Last month, the container volumes received by the U.S. dropped 28% in merely thirty days. This data is staggering, considering January's numbers showed a surprising 17% of imports had declined. February marks the 5th consecutive month of a double-digit drop. Industry veterans are sounding the alarm that this decline will very likely continue for several more months. A dip in container imports in the US can pose a challenge for the economy because it is often an indicator of a slowdown in consumer spending and economic activity. Container imports are a key measure of international trade and reflect the demand for goods and services from other countries.
iLevel With You 🏡
More topics for the average American household to consider…
🚂 Ohio derailment does not help railroads make a good name for themselves. Before the Norfolk derailment, the rail industry was attempting to transform its public image. The fiasco in East Palestine, Ohio has brought massive attention to the railroads that they were not expecting, suspending their plans to rebrand. Despite being an essential part of the US transportation system, railroads have long struggled with a negative public perception, often being associated with outdated technology, inefficiency, and environmental harm. By attempting to rebrand their image, railroads aim to change these perceptions and communicate their value to a wider audience.
🍗 Chick-fil-A is heading to Kansas City. The fast food favorite for fried-chicken lovers across the United States has announced its plans to construct its fifth U.S. distribution center. This planned facility will be home to 148,000-square feet and is expected to create more than 60 jobs in the nearby town of Olathe, Kansas. Chick-fil-A Supply is the subsidiary of the restaurant chain that will be responsible for putting together this $31 million investment. Chick-fil-A has a strong and collaborative relationship with its distribution centers, which play a critical role in ensuring that the company's restaurants have the necessary ingredients and supplies to operate smoothly and efficiently. The company's distribution centers are responsible for sourcing, warehousing, and delivering a wide range of products, including food ingredients, packaging materials, and cleaning supplies, to Chick-fil-A restaurants across the country.
📫 Home delivery: a blessing or a curse? A recent study by Descartes was conducted, and the study's data shows that 2/3 of those who responded have said that they "had a problem" with home delivery over the past 3 months. This study showed that there will need to be improvements to delivery performances, or there will be a rough road ahead for convienience. Offering reliable and efficient home delivery options can improve customer satisfaction and loyalty. Customers are much more likely to return to a retailer that provides a positive delivery experience, which can ultimately increase sales and revenue. In a highly competitive e-commerce market, retailers that offer superior home delivery options can gain a competitive advantage over their rivals. By providing faster and more reliable delivery, retailers can differentiate themselves and attract more customers.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔋 More EV batteries, less lithium. Electric vehicles are typically powered by lithium batteries, but there is a lingering fear regarding their safety and risks. Some believe that sodium-ion-powered batteries are the future of electric vehicles, citing that they are non-flammable and would be an answer to lithium supply and shortage issues. Alternatively, lithium batteries contain highly reactive chemicals that can generate significant amounts of heat and energy when exposed to certain conditions, such as overheating or physical damage. If the temperature of a lithium battery increases too much, the battery can experience a runaway reaction, where heat causes further chemical reactions that generate even more heat, leading to a rapid increase in temperature and pressure within the battery.
🏢 A warehouse management system can be pricey, but worth it. WMS has been around for almost 50 years, but with age comes beauty. The interest companies have in incorporating warehouse management systems remains high, and there are many options - from capabilities and prices - that companies should consider when choosing which one they want. WMS can significantly improve the efficiency of warehouse operations by automating processes such as inventory management, order picking, and shipping. By streamlining these tasks, WMS can reduce labor costs, minimize errors, and increase productivity. As e-commerce and omnichannel retail continue to grow, WMS will become increasingly important for businesses that want to optimize their warehouse operations and meet customer demands.
🚂 CSX CEO says that railroads must carry more freight to improve the industry. Jon Hinrichs, the new Chief Executive Officer of the third-largest U.S. railroad (according to revenue statistics) declared that he wants to increase rail carloads. Hinrichs also expressed that he intends to repair relationships with unionized railroad workers after a contentious few years, seeking to attract more business and manpower. Rail transport is one of the most efficient modes of transportation for moving large volumes of freight over long distances. By carrying more freight, railroads can further leverage this efficiency and reduce transportation costs for shippers. Additionally, by carrying more freight, railroads can better utilize their existing infrastructure, increase their revenue, and improve their profitability.
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.