The Friday Report Blog: July 21st, 2023

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

Mercedes-Benz Boosts Factory Efficiency with ChatGPT

Mercedes-Benz is enthusiastically integrating ChatGPT into its operations and vehicle features, aiming to revolutionize its manufacturing processes and user experience. The auto giant has collaborated with Microsoft to embed the technology in its MBUX entertainment system, already rolled out in 900,000 US vehicles, allowing intuitive voice control.

Additionally, Mercedes-Benz’s factories will use ChatGPT’s voice interface to provide non-programming staff access to critical data analysis tools and production data. By presenting data queries in an easy-to-understand chat format, the technology will enhance decision-making speed and accuracy in production processes. As a testament to the usefulness of ChatGPT, General Motors is also considering expanding its Microsoft partnership to offer the technology as an in-car voice assistant.

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Unveiling Kraft Heinz’s Mega Project: A $400M Auto-Distribution Hub in Illinois

Amid rising industry-wide interest in automation for improving supply chain efficiency, Kraft Heinz has announced plans to launch a state-of-the-art, fully automated distribution center.

Developed in collaboration with Daifuku Wynright, a global leader in integrated material handling systems, the center will operate round-the-clock and feature robotics for seamless product selection. This move is part of the company’s broader technology-focused approach under CEO Miguel Patricio to address supply chain issues.

Notably, a previous investment in artificial intelligence to enhance supply chain visibility added $30 million to Kraft Heinz’s sales. The company also has a multi-year agreement with Microsoft to move much of its data center assets to the Azure cloud service, reinforcing its supply chain resilience.

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Starbucks’ Latest Blend: Former Target Exec Brews Up Supply Chain Success

In a move to enhance operational efficiency, Starbucks has enlisted the expertise of former Target EVP and Chief Supply Chain and Logistics Officer, Arthur Valdez. Drawing on his experience from global retail companies including Walmart and Amazon, Valdez will help Starbucks optimize its global supply chain, inventory management, distribution, and transportation.

This aligns with Starbucks’ commitment to address supply chain challenges, as highlighted by CEO Narasimhan during the company’s Q2 2023 earnings call. To secure the future of coffee against ecological threats, Starbucks has established a lab in Costa Rica. There, the team develops new coffee varieties, tests disease-resistant trees, and refines agricultural practices to ensure high yields and coffee’s long-term sustainability.

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