As elusive as time may be when one is searching for it, it continues to march along, unaffected by those chasing it. With a new month on the calendar and a new quarter on the horizon, supply chain professionals must raise their heads from their daily tasks to gain insight from the top stories going on in the supply chain around the world. Shippers and forwarders alike can make better-informed business logistics choices by prioritizing the reading of the following industry recap.
On Friday, May 27, 2022, the retired General Stephen R. Lyons was appointed Port and Supply Chain Envoy by the Biden administration. With his previous experience as a former commander of the U.S. Transportation Command, Envoy General Lyons will work across any government, labor and industry mean necessary to strengthen the country's supply chain. The U.S. Department of Transportation quotes Lyons as saying, "I look forward to rolling up my sleeves and continuing to engage industry, labor, and port stakeholders to improve the fluidity of our supply chains, cut down on shipping costs, and ultimately save money for the American people."
As more carriers continue to evaluate their last-mile delivery costs and customer experience for areas of improvement, UPS put "their money where their mouth was" by purchasing leading software-as-a-service technology Delivery Solutions. According to Freight Waves, UPS is delighted that their new acquisition "helps merchants offer their customers more flexibility and an engaging online purchasing experience as they increasingly look for an experience-driven omnichannel strategy." The Texas-based SaaS team will reportedly stay at their Plano headquarters while maintaining current operations and future collaborations.
While many wrapped up their workweek on Friday, May 27, 2022, the Truck and Engine Manufacturers Association (EMA) filed a lawsuit against the California Air Resources Board. FreightWaves reported that the new changes to emissions standards, testing, and requirements are not per the Clean Air Act, which provided manufacturers with four years to adapt to the sustainability-focused ordinances. EMA hopes that the California Air Resources Board will reconsider current standards in honor of Congress's intent with the Clean Air Act, which will provide carriers and manufacturers with more time to upgrade and optimize their operations.
To leverage automation in the face of freight charges and current supply chain difficulties, Dollar General will add over 3,000 stores to its 8,000 Dollar General Stores that currently utilize self-check-out functions. The discount store chain plans to accomplish this and pilot over 200 self-checkout-only stores by the end of the year. Retail Dive reported these changes amidst quarter one, proof that "the fast-growing company is having trouble generating sales organically and is instead depending on new locations to boost its top line."
While most people want to put 2020 behind them, McKinsey and Company have been busy analyzing the year's impact on aviation. While most would expect dismal numbers from the year that brought Earth a worldwide pandemic, the data uncovered was worse than expected. With most aviation subsectors losing singular billions in 2020, airlines felt the most dramatic loss of $168 billion, while freight forwarders were the only category to show an increase in profit at $4.5 billion. McKinsey and Company writers are quick to point out, "Although the temptation is to pin the blame solely on the pandemic-induced plunge in passenger traffic, that would be to ignore the airline industry's underlying and long-term health problems."
As warm weather encourages the beginning of the produce season, Globe Newswire has its eyes on the newly released fruit and vegetable processing analysis. The press release reported that "the demand analysis of Global Fruit & Vegetable Processing Market size & share revenue was valued at USD 310 billion in 2021 and is expected to reach USD 530 billion by 2028, growing at a CAGR of 7.5% between 2022 and 2028." This is no surprise as more U.S. homes find security in pantries full of packaged items in case of repeated pandemics, abnormal weather patterns, or continued diesel price hikes.
Although the fast-paced day in and out of work can be numbing to global market changes, supply chain professionals must prioritize staying in tune to make the best business decisions. Staying in tune with the market doesn't stop at international news but is imperative within the local market. Shipping companies and freight forwarders can remain proactive in both areas without giving up much of their time by rolling out machine learning business logistic software to do the work for them. Intelligent Audit provides top-of-the-line business logistics software to present actionable analytics and help detect problems to guide daily operations based on big picture perspectives. Get your business future-ready by starting a conversation with Intelligent Audit today.
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Key players are looking back on 2022 to see what lessons can be brought into the new year. In the industry that’s always moving, here’s what you need to know.