September 2024
Supply Chain News to Know

SEPTEMBER 2024

News To Know

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From the devastating typhoon in Vietnam to flooding in Central Europe and wildfires and hurricanes in the U.S., it’s shaping up to be another year full of extreme weather events — and supply chain professionals could use all the help they can get to keep up… Let’s dive in.

The Lead: Actual AI Progress

AI has received a lot of hype during the past 12 months, with promises to “revolutionize” the way you work. In many cases, those claims were exaggerated.

But for some, AI is, in fact, having a meaningful impact on operations, including the supply chain.

Take Kraft Heinz, for example. "We're not completely autonomous yet," Helen Davis, a senior vice president and head of North America operations, told Business Insider. But the goal is for Kraft Heinz's logistics experts, manufacturing employees, and supply-chain and operations leaders to receive tech-enabled recommendations to meet demand and avoid service disruptions. The north star vision Kraft Heinz is working toward is to create a self-driving, fully autonomous supply chain, says Davis.

While these investments promise to improve efficiency, the company doesn’t view AI as a way to replace its workforce — instead, AI is considered a co-pilot.

"It's almost like you can take a person from day one and make them just as good as a person that's been there 10 years," Davis said. "Because the system is telling you exactly what you need to do."

In View

Speaking of AI, FourKites founder and CEO Matt Elenjickal writes for Forbes that too many execs are being driven by "AI FOMO" rather than a cogent strategy and disciplined approach. But following a few best practices can set you on a path toward real returns.

Negotiations between the International Longshoremen’s Association and the United States Maritime Alliance remain halted, with the September 30 deadline looming. The Port of Long Beach and others say they’re prepared for an influx of volume — but will it be enough?

As retailers continue to adapt to macroeconomic conditions, labor remains an important piece of the efficiency puzzle. In his latest for TotalRetail, Seth Frederickson examines how retailers can increase the productivity of the labor they already have, starting with their supply chains.

Numbers to Know

According to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “Slower than expected sales are causing warehouses to fill with unsold stock, and a dearth of new orders has prompted factories to cut production for the first time since January. Producers are also reducing payroll numbers for the first time this year and buying fewer inputs amid concerns about excess capacity… Although falling demand for raw materials has taken pressure off supply chains, rising wages and high shipping rates continue to be widely reported as factors pushing up input costs, which are now rising at the fastest pace since April of last year.”

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Words of Wisdom

Real-time supply chain visibility isn't just for tracking. But too many companies use it that way…

The secret to unlocking real value lies in operationalizing your supply chain data. For example, one Fortune 500 company integrated their e-commerce solution with real-time visibility. Now they can take orders even when they don't have products in stock by using ETAs to drive decision-making.

The result? Boosted sales without increased inventory costs.

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RON RICHARDSON
FOURKITES CHIEF REVENUE OFFICER

ICYMI

Managing a complex supply chain with thousands of SKUs can be a major challenge, often leading to issues like expedited orders, duplicate orders and unexpected inventory levels. In the latest FourKites blog post, learn how to break free from the tactical management of inbound orders.
FourKites announced the recipients of its annual customer awards, celebrating outstanding customer and partner accomplishments, ingenuity and collaborative initiatives that bring unparalleled value to complex supply chains.