The Friday Report Blog: October 5th, 2023

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

Revving Up Resilience | BMW’s Strategic Shift to Insourcing

BMW Spartanburg is boosting flexibility by adopting insourcing and localization, reveals Oliver Bilstein, VP of Logistics and Production Control at BMW Manufacturing. Part of a $1.7 billion investment, BMW’s strategic move includes insourcing a new press shop set to begin next year and a recently insourced crossdock.

Transitioning to electric vehicles (EVs), the Spartanburg facility is prioritizing local supply chains. Their cell supplier is conveniently located just three hours away in South Carolina, with battery assembly just 15 minutes from the plant. This close proximity ensures efficient, just-in-sequence delivery.

Bilstein emphasized the need for adaptability in these dynamic times, urging logistics providers and suppliers to embrace lean, green, and digital solutions, aligning with BMW’s forward-thinking vision.

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Amazon Elevates Holiday Hiring Day

Companies are gearing up for the holiday season with fresh hiring sprees, ensuring a smooth shopping experience for consumers. Amazon takes the lead by planning to employ 250,000 holiday helpers, an impressive jump from last year’s 150,000.

They’re also investing a whopping $1.3 billion in pay hikes, aiming for an average hourly rate of around $20.50. UPS remains consistent, targeting over 100,000 seasonal roles, with a track record of offering permanent spots to a good portion of them. U.S. Postal Service is welcoming 10,000 seasonal staff, focusing more on long-term retention.

Target aims to on-board nearly 100,000 team members, while DHL eCommerce and Radial have ambitious targets too. All in all, despite some fluctuations, it’s evident companies are enthusiastically prepping to meet holiday demands!

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AI’s Rising Role in Packaging Explored at Pack Expo

The packaging industry is set for an exciting revolution with the integration of artificial intelligence (AI), as discussed at Pack Expo 2023. While AI is still in its early stages, its potential in enhancing operations, from predictive maintenance to quality control, is vast.

Amazon’s ambition to hire a quarter-million individuals for the holidays demonstrates its commitment to meeting demands. AI can even aid in customizing product designs and optimizing smart packaging. As this technology evolves, industry experts stress the importance of robust security measures and thorough training.

By starting small and expanding over time, businesses can harness AI’s full potential. As Matthew Wright, CEO at Specright, put it, “I’ve never been more excited about the future.”

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