Supply chain news wrap: Shanghai on the rebound, teenage truckers & more
By FarEye | October 13, 2022
Hello there! Here's your dose of all the top news doing the rounds in the world of supply chain and logistics in 1 minute and 426 words.
Shanghai Slowly Returning to Normalcy
The port of Shanghai is slowly recovering from a series of lockdowns that severely hampered the global supply chain. The daily container throughput - a measure of container activity - in Shanghai is close to 90% of the normal level. Experts though are expecting the supply chain situation to get worse before improving. China's COVID issues have put the global supply chain under pressure recently. The Global Supply Chain Pressure Index (GSCPI) shows the supply chain pressure worsened in April.
To successfully navigate supply chain issues enterprises must embrace modern technologies. In a McKinsey survey of supply-chain executives, 90% said they expect to overhaul planning IT within the next five years. Four out of five expect to or already use AI and machine learning in planning, a key driver for supply-chain IT implementations.
Will Teenagers Solve Driver Shortage in the U.S.?
The Federal Motor Carrier Safety Administration (FMCSA) has joined forces with the U.S. Department of Labor and the American Trucking Associations (ATA) to start a commercial vehicle driver apprentice program for teenagers. Upon successful completion of the program, 18 to 20-year-olds will be able to drive commercial trucks across state lines.
The driver shortage has added to supply chain woes in America. The ATA American Trucking Associations (ATA) estimates that there's a shortfall of close to 80,000 truckers in the U.S. The key to solving driver shortages does not just lie in increasing driver supply but also in taking measures to increase driver utilization to build greater logistics efficiency.
Davos 2022: Supply Chain Under the Spotlight
Top business leaders gathered in Davos and one of the main talking points was how to tackle supply chain disruptions. Jens Bjørn Andersen, Group CEO, DSV is banking on diversification of supplier networks and investments in warehouses and technology to tackle the challenging market conditions. Frank Appel, CEO Deutsche Post DHL Group, said that digitization and automation must be embraced to bring in more agility into supply chains. And visibility is the bedrock of all agile supply chains. With full visibility, enterprises have more control over their supply chain and logistics.
Industry experts are rallying for digital transformation of supply chain so that large amounts of data can be used to better predict supply chain disruptions. And it's not just about risk mitigation, digitization can help enterprises gain a competitive advantage and make data-driven decisions.