E-commerce companies rush to deploy larger fleets of autonomous delivery drones


Good morning! It’s International Youth Day! 🎉

What better way to connect with the younger generation than chatting about new tech…?

While FAA regulations and public perception have held the tech back from being fully implemented, the world’s largest e-commerce-focused companies are rushing to launch larger fleets of autonomous last mile drones.

Check out today’s featured article from Logistics Viewpoints to read about the narrow race to deploy autonomous drones for last-mile deliveries and what it could mean for the supply chain’s future. ☕️


Featured Article:

The Race for Last Mile Drones | Logistics Viewpoints

“One of the most difficult and expensive aspects of the supply chain is last mile and home delivery.”

READ THE ENTIRE LOGISTICS VIEWPOINTS ARTICLE HERE

Safety & Artificial Intelligence 🦺

Tests show Tesla’s Self-Driving AI does not recognize child hazards

The Dawn Project, a safe-technology advocacy group, has released results from a series of tests performed on Tesla’s Full Self-Driving (FSD) Beta software - and the results are troubling.

Tests performed in June 2022 show that when a stationary child-sized mannequin is put in the vehicle’s path, the software repeatedly failed to recognize the obstacle in its path. The Dawn Project plans to utilize this data to lobby Congress to ban the technology.

Read more from SupplyChainBrain ▶


Company Culture 🎉

Millennials & Gen Z need mentorship, not lectures

Millennials are stressed, and not without good reason to be. Growing concern about work-life balance has left many choosing to put their personal lives over work after the Covid-19 pandemic derailed the lives of so many - particularly the newer generations of workers. In a survey conducted by Microsoft’s 2022 Work Trend report, 55% of millennials reported they were more likely to put their health and well-being over working for someone else.

The bosses of the world need to start taking these feelings into account. Flexible work scheduling seems to be a priority for the younger generation and can be implemented as long as productivity doesn’t take a nosedive. Many managers cite this as the reason they are hesitant to let up the reins. But in order to keep staterooms bull, there needs to be some compromise.

Read more from Fleet Owner ▶


Let’s Get Global 🌎

Globe spinning on its axis.

Outer Space Animation GIF By Cat Chmaj via GIPHY

✈️ Annnnnd… down we go. According to data from Clive Data Services, constant issues plaguing world trade have caused air freight rates to droop from their recent historic highs. Niall van de Wouw, founder of Clive and now Chief Airfreight Officer at Xeneta, referenced the recent drop as a result of supply chain disruptions that are out of industry leaders’ control. Freight demand volume in the international air cargo industry fell 9% over July - still resting quite high. Persisting war in Ukraine, inflationary issues, and staff shortages may continue to keep rates elevated.

🚢 Ukraine grain exports are finally on the up and up. The United Nations’ deal with Russia, Ukraine, and Turkey is expected to increase the metric tonnes of grain imported from Ukraine by two to five million. Since Russia’s Feb. 24 invasion of the country, Ukraine has had a dozen ships frozen in ports. The UN deal is meant to avoid further global food crises.

☣️ Russia’s invasion of Ukraine is beginning to stumble over the semiconductor shortage. Chip manufacturing has been slow-going as the world faces constant problems within the supply chain. The White House had previously “cut off” Russia’s access to the technology needed for weaponry. Russian soldiers are now reportedly clambering through war-torn buildings in Ukraine to source more chips for weapons while chip-manufacturing companies struggle to supply the rest of the world with the products needed to meet demand.


Electric Vehicles 🔋

Ford price hike indicates EV’s will remain expensive

Ford Motor CEO Jim Farley has made it clear to reporters that the company does not expect the cost of raw materials needed to develop electric batteries will drop anytime soon. Precious materials such as lithium, cobalt, and nickel have forced the car manufacturers to raise the prices of their new EV models, including the Ford F-150 Lightning pick-up truck, angering many prospective customers.

Price hikes attributed to “significant material cost increases” have included increases from $6,000 to $8,500 on select models. Tesla, Ford’s competitor, also raised prices this summer for similar reasons.

Electric vehicles do not look like they will be seen as “affordable” any time soon.

Read more from CNBC ▶


Network Association 🤝

Weathering the Storm Through Supply Chain Partnerships - SupplyChainBrain

“Supply chains never catch a break. When economic times are tough, they struggle to keep costs down, while maintaining the flow of product to depressed markets.”

Quiet Platforms launches delivery network with 40-plus carriers on tap - Supply Chain Dive

“Quiet Platforms, American Eagle’s logistics arm, formally launched its delivery network that executives hope will become a fulfillment powerhouse competitive with Amazon.”

FedEx Freight expands its presence in Phoenix - Logistics Management

“Company officials said that this facility, its West Phoenix Service Center, is “perfectly positioned” to serve the growing Phoenix market while bringing FedEx Freight’s total door count to almost 26,000. “


Trade & Border Issues 🗺

Rhine River Withers to Crisis Level as Europe Craves Energy - SupplyChainBrain

“The Rhine River is set to become virtually impassable at a key waypoint in Germany, as shallow water chokes off shipments of energy products and other industrial commodities along one of Europe’s most important waterways.”

Agents of Change Assemble to Solve Supply Chains & Global Commerce Challenges - Logistics Matter

“As the leading minds from the worlds of retail, technology & supply chain converged on Miami (for the first time in-person since 2019), we were once again reminded of the power of innovation in the face of challenge & the true value of global community.”


Driver Issues 🚛

Truck Driver Wages Accelerating; Electronics Supply Chain Alarms | The Wall Street Journal

“Truck driver compensation is getting an overhaul under the pandemic-driven strains in supply chains.”


Sales 🧾

Preliminary July Class 8 truck net orders see declines - Logistics Management

“FTR reported that preliminary July North American Class 8 net orders—at 10,600—dropped to their lowest level going back to November 2021, adding it marked the lowest July tally since July 2019, while falling 33% compared to June and down 60% annually.”

U.S. Postal Service to temporarily hike prices for holiday season - CNBC

“The U.S. Postal Service filed a notice of a temporary price hike for the holiday season.”


Electric Vehicles 🔋

Musk Says Tesla Will Begin Shipping Semis Later This Year - TT News

“Tesla Inc. CEO Elon Musk tweeted that Tesla will start shipping its Semi truck later this year, followed by the Cybertruck in 2023.”

How the EV tax credits in Democrats’ climate bill could hurt electric vehicle sales - CNBC

“Proposed tax credits of up to $7,500 for EVs under the Inflation Reduction Act could be counterintuitive for sales of EVs, according to several companies.”


Regulations ⚖️

Buttigieg promises action on airline delays - Politico

“Transportation Secretary Pete Buttigieg said Wednesday that his agency is ready to take enforcement actions against airlines that don’t perform, as flight delays and cancellations continue to roil the busy summer travel season.”

Innovation 🧐

Patent Pending: Ford floats drone-vehicle fleet, Walmart mulls mixing produce and dry goods shipments - Supply Chain Dive

“Supply chain innovators apply to patent what they see as important tools for the future.”


Business Strategy 💡

Strategic planning pays off - DC Velocity

“Beauty products company Monat Global deftly managed explosive pandemic-driven growth thanks to a state-of-the-art DC that has maximized storage space and automated its picking process.”

The importance of managing risk in the supply chain - Supply Chain Digital

“Avetta urges companies to prioritize eliminating cybersecurity risks, which could otherwise have devastating effects on their supply chain.”


News Bag 📰

Supply Chain Weekly Wrap-Up 08/05/2022-08/11/2022 | All Things Supply Chain

“Last week provided some relief for global food supply chains as the first ship loaded with grain left a Ukrainian port since the conflict began.”


Supply Chain by the Numbers for Aug.11, 2022 - Supply Chain Digest

“$91 - That about the price per barrel of West Texas crude oil this week.”


Industry Forecast 📊

Massive disruptions to the supply chain predicted by experts - CBS News

“Just as retailers are starting to gear up for the holiday season, there are warnings of a possible nationwide shipping log jam.”

ATRI: Trucking endures 'costliest year ever' - FleetOwner

“The total marginal cost of trucking grew by 12.7% in 2021 to $1.855 per mile, the highest on record, according to the American Transportation Research Institute’s (ATRI) 2022 Operational Costs of Trucking analysis.”

Ready or not, the supply chain transformation is underway - The Hill

“We need to talk about globalization: It’s simply not what it was.”


Sustainability ♻️

Supply Chain Graphic of the Week: The Cummins 2022 Sustainability Report - Supply Chain Digest

“Engine giant Cummins is recently out with its 2022 Sustainability Report, based mostly on 2021 data.”


Trucker’s Lounge 🧢

North American truckload carrier CFI honors women drivers with custom truck outfitted with unique, large-format graphics - AJOT.COM

“Penny Thomas, a professional driver for Joplin, Mo.-based CFI, stands next to specially outfitted CFI big-rig long-haul truck with custom-designed, large-format ‘truck wrap’ graphics recognizing the ‘She Drives CFI’ program.”


Inflation 💸

This key inflation measure fell, but remains painfully high - CNN Business

“A benchmark measure of inflation slowed in July after surging in the previous month, offering a glimmer of hope that the painful inflation Americans are facing could moderate in the coming months.”



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