Hottest sector of supply chain is the last-mile deliveries
Good morning! Sunday Funday. 🤠
PitchBook Data’s Private Equity’s Opportunity in Supply Chain Technology report was released and hinted at one major trend: last-mile logistics. With supply chains innovating while they pivot around constant constraints due to war, pandemics, and regulatory changes, private investors are showing their cards by pouring money into services that quicken the final-mile delivery process. Venture capital investments are currently geared towards technology, and the swift fulfillment of deliveries is a priority for many consumers.
Check out today’s featured article from Supply Chain Digital to read about the possibilities on the table for supply chain investment trends with last-mile logistics. ☕️
Invest19 GIF By Messe Stuttgart via GIPHY
Featured Article:
Last mile logistics 'hot area of supply chain investment' | Supply Chain Digital
“An in-depth report into investment opportunities in supply chain suggests the fragmented tech services market is ripe for private equity investment, to drive scale and value in established companies.”
Water Cooler Topics
🚛 Is the implementation of California’s AB5 law in the trucking sector a landmine for independent truckers in the Golden State? California is currently home to 70k+ independent truckers who follow the owner-operator model. AB5 will redefine the category these truckers will be classified as to work in the state and enforce them to inhabit an employee role instead of an independent contractor.
🇺🇸 Companies were forced to rethink their supply chains in 2020, and more than ever… CEOs are bringing their operations home to U.S. soil. “Reshoring” was expected to be a short-lived trend, but even after the Covid lockdowns have come and gone, the move to bring manufacturing and sourcing back to America is rapidly accelerating. Companies have also been considering “near shoring” and moving their operations to nearby countries, such as Mexico.
🛫 Air cargo rates are calming down as the record-high volume continues to drop. Labor shortages have concerned the air freighters as they struggle to manage the workload, even as capacity has dropped. Regardless of worsening conditions, the rates are still up 13% in comparison to the same time in 2021.
Maersk’s International Chamber of Shipping representation steps down, citing lack of green initiative by the board
One of the International Chamber of Shipping’s (ICS) largest members, Denmark-based shipping company Maersk, has stepped down from the board. In the move, the company has cited the board’s lack of ambition in environmental goals and its plans to instead shift its focus to the shipping liner group, the World Shipping Council (WSC).
By shifting its focus, Maersk will be dedicating internal resources to the WSC and strengthening its relationship.
Quote of the Day:
“Embrace what you don’t know, especially in the beginning, because what you don’t know can become your greatest asset. It ensures that you will absolutely be doing things different from everybody else.”
— Sara Blakely, founder of SPANX
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