Published on

The Supply Chain Buzz for May 8th: Shopify’s Tough Call, AI-enabled Safety, Legalization of Cannabis

Introduction

Good afternoon and good evening to all our listeners and viewers. Welcome to today's live stream of Supply Chain Now; Scott Luton and Greg White are here with you once again. Greetings, Greg.

Greg White: Doing quite well, Scott. It was a lovely weekend.

Scott Luton: Always nice to hear. In my neighborhood, we had a good weekend too. My son Ben won the game ball in his baseball game. Pretty proud of him!

Greg White: That’s fantastic! Those small successes definitely keep kids motivated and affirm their abilities. But today’s topic revolves around the latest in Global Business and Global Supply Chain news.

We encourage our listeners and viewers to join us live on LinkedIn, YouTube, Twitter, or Twitch every Monday at 12 noon Eastern. Let’s dive in with a couple of key resources and updates.

U.S. Bank Freight Payment Index Analysis

Last week, we discussed the U.S. Bank Freight Payment Index for Q1 2023 with Bobby Holland and Michelle Moore. The data revealed a continued soft Trucking market, with quarter-over-quarter and year-over-year drops in both shipment volume and spend for the first time in three years. This analysis will be available this Wednesday, and we encourage everyone to follow the link provided.

Community Engagement

A big hello to our listeners from all over – Seattle, Ecuador, Savannah, San Diego, Minnesota, and more. We welcome feedback and insights from everyone. Today, we delve into a few compelling stories starting with Shopify's recent strategic moves.

Shopify’s Recent Strategic Moves

Shopify announced laying off 20% of its workforce despite a successful first quarter. It decided to offload most of its physical fulfillment Network and its shipping Service Company, Deliver, to Flexport. Additionally, they plan to sell their warehouse automation firm, Six River Systems, to UK-based grocery tech company Ocado Group.

Greg’s Take:

  • The job cuts reflect the over-hiring done in 2022 amidst unexpected market predictions.
  • Divesting these assets back to specialized entities makes sense since companies like Flexport and Ocado can manage and optimize these services more effectively.
  • The consolidation and refocus allow Shopify to concentrate on its core competencies.

This move denotes a consolidation in the tech and logistics sectors, emphasizing efficient resource utilization and specialization.

Addressing Workplace Safety through Technology in Manufacturing

An article from Manufacturing Dive highlights how technology is being leveraged to enhance workforce safety. Key areas include:

  • Drones and bots performing hazardous tasks.
  • Predictive AI optimizing maintenance schedules to prevent heavy maintenance activities.
  • AI ensuring proper use of PPE.
  • Digital lockout/tagout procedures improving safety during equipment repairs and maintenance.

Greg’s Take:

  • AI acts as a consistent force in safety procedures, ensuring no corner-cutting during critical tasks.
  • The technology addresses not just accident prevention but also repetitive use injuries.
  • Automation of dangerous tasks warrants itself as humans shy away from perilous jobs.

Safety advancements in manufacturing are essential, ensuring a reliable and injury-free work environment.

The Growing Cannabis Industry

Delaware recently became the 22nd state to legalize recreational marijuana. States like Florida, Minnesota, Ohio, and Pennsylvania may follow suit. Projections indicate marijuana sales could hit $ 34 billion by the end of 2023.

Greg’s Insightful Take:

  • The Cannabis industry faces many challenges, including unenlightened, undisciplined, and unprofitable business strategies, and unscrupulous business practices.
  • High taxes and the illicit trade damage legitimate businesses.
  • Federal laws still criminalize marijuana, making interstate commerce risky and complicated.
  • Despite these challenges, the push for federal legalization could unlock significant financial opportunities.

The Cannabis industry holds potential but is rife with obstacles that need to be navigated carefully for sustained success.

Engagement and Learning Opportunities

For those interested in Procurement and Supply Chain Better Practices, a webinar by Verusen featuring Eric Wilk from Wurth Industry will be held this Thursday. Topics cover Tail Spend Management, Vendor Managed Inventory, and more.

Closing Remarks

We must continue pushing for innovation in our industry. Resisting the temptation to revert to pre-pandemic practices is crucial for real progress. Supply Chain leaders must lead the charge in transformative change.

In conclusion, thank you for joining us on another episode. Remember, the future of supply chain management relies on continuous innovation and adaptation to new technologies and practices.

Until next time, do good, give forward, and be the change needed in the world.

Keywords

  • Shopify
  • Flexport
  • Automation
  • AI
  • Manufacturing Safety
  • Predictive Maintenance
  • Lockout/Tagout
  • Cannabis Industry
  • Legalization
  • Webinar
  • Procurement
  • Vendor Managed Inventory

FAQs

1. What prompted Shopify’s recent strategic changes?

  • Shopify's recent layoffs and divestitures were driven by an over-hiring spree in 2022 and the need to refocus on core competencies, with automation and fulfillment services better managed by Flexport and Ocado.

2. How is AI improving safety in manufacturing?

  • AI ensures proper use of PPE, optimizes maintenance schedules to prevent dangerous tasks, and automates hazardous jobs through the use of drones and robots, thus preventing accidents and repetitive strain injuries.

3. What are the current challenges faced by the Cannabis industry?

  • The Cannabis industry struggles with issues like unenlightened business practices, undisciplined operations, profitability problems, high taxes, illicit trade, and ongoing federal legal restrictions that complicate interstate commerce.

4. How can one benefit from the upcoming webinar on procurement practices?

  • The webinar by Verusen will cover essential topics like Tail Spend Management and Vendor Managed Inventory, providing valuable insights into improving procurement processes and collaboration with vendors.

5. Why is it crucial to resist reverting to pre-pandemic supply chain practices?

  • Post-pandemic, the supply chain environment has changed, and continuous innovation is necessary. Reverting to old practices can jeopardize progress and adaptability in the current competitive landscape.

Read More