The Friday Report Blog: July 14th, 2023

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

Unlocking Supply Chain Resilience with AI

Artificial Intelligence (AI) and machine learning are proving to be game-changers in the world of global supply chains, especially in the face of challenges brought on by COVID-19 and stricter carbon emission standards. These innovative technologies are enabling companies to forecast demand accurately, streamline inventory management, and lower emissions and waste.

McKinsey reports that early AI adopters have seen a 35% decrease in inventory expense and a 15% drop in logistics costs. AI-powered sensors can also prevent waste from damaged goods by alerting managers when conditions are unsafe. The capacity of AI and machine learning to improve supply chain visibility, flexibility, and cost-efficiency in real-time is becoming critical in managing risks, staying compliant, and focusing on resilience and sustainability in this ever-changing business landscape.

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Tesla Supplier Chooses New Mexico for Factory Expansion

Taiwan’s Hota Industrial Manufacturing, a leading producer of automotive gears for electric vehicle (EV) companies like Tesla, is investing $72 million to set up a facility in Santa Teresa, New Mexico. The new plant, set to begin construction next year, is expected to generate 350 jobs and offers the potential for expansion over the next decade.

The location was chosen for its advantageous position near a key transport hub and its robust workforce. Hota’s aggressive expansion plan is driven by growing EV demand. With the establishment of this plant, New Mexico’s manufacturing industry, which has mainly focused on computer, electronic, petroleum, and food and beverage sectors, will gain a new and exciting automotive dimension.

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Puma’s Transparency Initiative for the Leather Supply Chain

Sportswear powerhouse Puma has committed to sourcing all its leather from confirmed deforestation-free supply chains by 2030 or sooner. This commitment follows Puma’s recent inclusion in the Deforestation-Free Call to Action for Leather Initiative, spearheaded by the Textile Exchange and the Leather Working Group.

Other renowned brands, such as Adidas and Kering, have also pledged their commitment. As part of its dedication to environmental responsibility, Puma has implemented measures to minimize biodiversity loss and environmental pollution associated with its production processes.

Moreover, the company doesn’t use any materials derived from ancient or endangered forests. Earlier this year, Puma phased out kangaroo leather, switching to a new proprietary “K-Better” material in its soccer cleats.

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