Supply chains are constantly changing as new rules, technologies, resources and market trends transform operations. Here's a skim of the week's indexes, technology announcements, distribution centers and M&As from around the web.
In Case You Missed It
- Amazon revealed plans to take on FedEx and UPS.
- SAP's CEO said big dreams and good people led him to success.
- Data may be overwhelming some businesses, per a new report.
Market Snapshot
The World Trade Organization lowered its 2016 global trade forecast to 1.7%, down a full point from the April estimate, marking the slowest growth rate since the 2009 financial crisis.
A recent Fairplay analysis reveals global port productivity is sluggish, growing just 2% from 2014 despite investments. Although ports in North America and Europe saw decreased berth time, this was offset by increased time-to-departure in the Middle East and Asia.
Confidence in the logistics industry has been negative (below 50%) for a full year now, despite weak improvements, according to a Logistics Management overview of the Stifel Logistics Confidence Index.
Regardless, investment in cold chain logistics is expected to grow beyond 8% each year through 2020, according to a Technavio analysis. The growth is driven by more stringent regulation, trends towards connectivity and energy reduction, and a need for cold-chain management solutions.
Similarly, demand for material handling equipment is expected to grow to $176 billion by 2020, according to a study by The Freedonia Group.
Meanwhile, as investments in technology and equipment grows, so does the talent requirement.
The International Society of Automation and the Automation Federation projected the manufacturing sector will need to fill 3.5 million jobs in the next 10 years, 2 million of which may remain unfilled due to high skill requirements, Modern Materials Handling reports.
Technically Speaking
Blackberry is turning away from mobile devices and pivoting towards the enterprise mobility software market. In one example of the renewed focus, the company released a radar equipped tracking system this week.
Adidas produced a shoe made entirely by robots in Germany, using motion capture technology and 3D printing to manufacture 500 pairs.
Uber and Otto are making moves to enter the truckload market: Reuters reports they have begun talks with owner-operators and shippers, and are looking to enter the commercial market in a year.
SMC³ released a series of new direct-to-carrier APIs for its less-than-truckload platform. APIs, which include alert systems, are now commonly used by TMS providers.
On a related note, grocery retailer Giant Eagle will implement Manhattan Associates' TMS.
Breaking Ground
Michelin will break ground this year on a $270 million, 3.3 million square-foot distribution center near Spartanburg, SC. The location will facilitate access to the Port of Charleston, and help serve 20 major manufacturing plants in North America, American Shipper reports.
CHEP's container division will open a new container processing center in South Bend, IN, and feature an "advanced semi-automatic wash line," according to Modern Materials Handling.
Beoing signed an agreement with Morocco to build a "Boeing industrial zone" with the potential to create 8,700 jobs in the North African country. The deal is part of a national plan to bring 50,000 jobs to Morocco, Industry Week reports.
XPO Logistics and U.K. e-commerce firm Missguided opened a new warehouse in Grand Central, Manchester. XPO will handle the fulfillment of 150,000 orders and reverse logistics needs of the e-retailer, The LoadStar reports.
Mergers & Analysis
Whole Foods bought shares of long-term partner and grocery delivery startup Instacart, after the latter's shareholders authorized a $36 million equity sale, Bloomberg reports. The purchase consolidates the grocery retailer's partnership as it expands its food delivery services.
Singapore Exchange's $112.8 million purchase of freight rate information publisher The Baltic Exchange was approved by shareholders, American Shipper reports. The deal is pending approval in the U.K.
Pro Mach expanded its packaging capabilities through the acquisition of Pacific Packaging Machinery for an undisclosed amount. The acquisition should improve Pro Mach's food, beverage, personal care and pharmaceutical packing and filling solutions.
In other news: Kuwait-based Agility Logistics agreed to a Maersk emissions reduction plan; GEP and the Chartered Institute of Procurement & Supply partnered for new education offerings; and Jabil Global will produce RM2's sustainable BLOCKpal pallet in Mexico.
