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October 2024
Supply Chain News to Know

 
 
OCTOBER 2024

News To Know

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It’s budget-planning season — and with supply chain inefficiency causing $95 billion in waste annually, CFOs and CSCOs will likely have some uncomfortable conversations. The culprit? Blind hand-offs… Let’s dive in.
 
 
 

  The Lead: Elephant in the Room
 
 
 
 
 

While the ILA’s strike came to a temporary end after three days, the union and the US Maritime Alliance (USMX) still don’t see eye-to-eye on one key issue: automation.

As Miranda Nazzaro of The Hill reports, the union argues that technological advances could threaten the existence and value of union jobs, a concern that has persisted to varying degrees since the Industrial Revolution first introduced machines into the manufacturing space.

While those concerns are valid, not everyone sees the issue the same way.

“What most Americans don’t realize is that American exceptionalism does not exist in our port system. Our infrastructure is antiquated. Our use of automation and technology is antiquated,” said Margaret Kidd, program director and associate professor of supply chain logistics at the University of Houston.

“The ILA needs to be looking at a long-term vision. There’s no industry — journalism, academia, manufacturing — that hasn’t been changed by technology,” she added.

 
 

  In View
 
 
 
 
 
water_wave.png Leading up to the strike, US East and Gulf Coast ports got busier as shippers began pulling forward imports. As Bloomberg reported, the East and Gulf Coast ports saw a 27% year-over-year increase in port calls from vessels from July through September 22, according to FourKites data.

articulated-lorry_1f69b.png Meanwhile, despite the pressure that hurricanes Helene and Milton exerted on US supply chains, the trucking market remains soft. According to the most recent TD Cowen/AFS Freight Index, truckload freight markets continue to be characterized by low demand and excess capacity. In Q3 2024, linehaul cost per shipment recorded its seventh consecutive quarter with a YoY decline, though the past four quarters indicate it has found a floor, hovering 12-14% above pre-pandemic levels.
 
 

  Numbers to Know
 
 
 
 
 
shipments_bound_for_US_impacted_by_Hurricane_Helene.png
 
 
While the initial shock was severe — with the volume of shipments declining as much as 34% in Florida and Georgia on a week-over-week basis when Helene struck — by Sunday, shipment volumes to Florida actually jumped 20% compared to the previous week. Overall, the region still saw a 7% decline in shipments from September 24 to 30, according to FourKites data.
 
 

Words of Wisdom
 
 
The largest operating expense for a retailer is labor. And the largest capital expense is inventory. If you think about the way labor executes and the way labor is planned, they're super siloed systems — you have task management for execution and workforce planning systems. To reduce the manual orchestration of workflows, it stands to reason that these systems need to merge.

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TOM BIANCULLI
CHIEF TECHNOLOGY OFFICER, ZEBRA

 
 

  ICYMI
 
 
 
 
 
  • FourKites announced it has been chosen by chemical manufacturer Organik Kimya to provide supply chain visibility for its global shipments. The company aims to boost operational efficiency, reduce costs, and better manage delays, which will ultimately enhance customer service.
  • We recently brought together 45 participants from 31 companies for FourKites’ annual Innovation Workshop. This event gives our customers a chance to shape the future of supply chain technology directly. It’s like a big brainstorming session, but with real results — get a sneak peek at what’s coming next in our latest blog post.
  • FourKites was named to the seventh annual FreightTech 100 list, spotlighting the most innovative companies in the freight technology sector.
 
 
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