The Friday Report Blog: August 18th, 2023

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

US Postal Service’s Big Cut in Aircraft Volume

The Postal Service is making commendable strides in its 10-year transformation plan, aiming for financial stability and enhanced competition with major carriers. They’ve successfully reduced transportation expenses by 6.2% YoY for the quarter ending June 30. This savings was majorly due to a shift from air to highway transportation.

In 2023, 98% of the U.S. population received their mail and packages in less than three days, highlighting the agency’s efficient service. Additionally, there are plans to open and renovate various processing and distribution centers, enhancing service performance and market reach.

Despite facing challenges like inflation, the Postal Service is actively managing costs and has introduced the USPS Ground Advantage, which consolidates three delivery options, simplifying operations and expanding their market in the package industry.

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The Biden Administration’s Sustainability Plans

The Biden administration has introduced an exciting initiative aimed at enhancing sustainability within federal procurement. The new Sustainable Products and Services procurement rule is set to emphasize the importance of purchasing eco-friendly products and services wherever feasible.

This rule will apply to major entities like the Department of Defense, NASA, and the General Services Administration. It intends to simplify existing regulations by consolidating sustainable purchasing requirements and emphasizing environmental considerations.

Notably, the proposal promotes the acquisition of EPA-endorsed green products across 34 categories, encompassing standards like Energy Star, Safer Choice, and WaterSense. Alongside, the EPA is broadening its list of suggested products for government buying, encouraging choices that prioritize both the environment and public health.

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Kraft Heinz Welcomes Next CEO

Kraft Heinz welcomes Abrams-Rivera as its new leader, with current CEO Patricio praising him for his innovative drive, particularly in emerging sectors. Since joining in 2020, Abrams-Rivera has showcased impressive results, making him a suitable choice to propel the company’s growth aspirations.

Jack Pope, the lead director, applauds Abrams-Rivera’s talent and forward-thinking approaches. Despite supply chain challenges since 2020, Kraft Heinz recently reported a 2.6% sales boost. They’re implementing a robust strategy to fuel growth, with product innovation at its core.

Recent launches include the U.S. expansion of the European brand ‘Just Spice’, spicy Heinz ketchup variants, and fresh frozen offerings. Furthermore, with a $400 million investment in a new Illinois distribution center, Kraft Heinz aims to enhance its efficiency.

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