The Friday Report Blog: Sept 15th, 2023Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry
RH Triumphs Over Supplier Setbacks
Luxury furniture retailer RH remains confident and resilient despite supplier Mitchell Gold Co.’s recent bankruptcy filing. CEO Gary Friedman assures that RH can swiftly source the $30-$40 million demand, expecting no significant interruptions.
While acknowledging potential challenges in the industry, Friedman emphasizes no major risks to RH. Mitchell Gold Co., established in 1989 and known for its brand Mitchell Gold + Bob Williams, faced challenges during the pandemic, such as supply chain delays. Yet, it represents only a minor portion of RH’s operations.
On the company’s earnings call, Friedman highlighted specific circumstances at Mitchell Gold, rather than broader supplier network issues. As the home goods sector navigates supplier challenges in 2023, companies like Big Lots are finding creative solutions and successfully moving past disruptions, ensuring continued growth and customer satisfaction.
Understanding the Extended Enforcement of Drug Supply Chain Act
The Food and Drug Administration (FDA) has extended the compliance deadline for the Drug Supply Chain Security Act from Nov. 27, 2023, to Nov. 27, 2024. This move grants drug manufacturers and distributors an additional year to bolster systems for electronic drug traceability, ensuring efficient end-to-end drug monitoring. The FDA will oversee the industry’s readiness throughout this period.
The extension is a response to industry concerns over supply chain communication and technological challenges. Michael Hogue, CEO of the American Pharmacists Association, labeled this move a “huge win” for pharmacists. Leigh Verbois, from the Office of Drug Security, emphasized the new date as a stabilization period, urging full implementation by 2024.
The Act aims to safeguard patients from harmful drugs and ensure robust drug distribution. Chip Davis, HDA President, appreciated the FDA’s decision, emphasizing its focus on American health and safety.
IBM’s AI-driven Vision for Supply Chain Sustainability
IBM’s Jonathan Wright highlights the immense potential of AI in advancing sustainability and profitability for businesses. EY emphasizes the role of a robust AI model in today’s competitive digital landscape, a sentiment echoed by big consultancy firms.
However, the incorporation of generative AI into the central supply chain isn’t without its challenges, such as responsible adoption and building trust. Training remains a concern, with many executives feeling underprepared.
Yet, sustainability is pivotal when implementing AI in supply chains. Wright underscores that profitability and sustainability are interconnected. By modernizing IT and using AI, companies can automate data processing, reduce their carbon footprint, cut costs, and manage sustainability data more transparently, ensuring a brighter, greener future for businesses.
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