Supply Chain Now Radio Episode 224

Supply Chain Now Radio, Episode 224
The Supply Chain Buzz Series
Sponsored by The Effective Syndicate:

In this episode of the Supply Chain Buzz, Scott Luton discusses the latest topics and top stories in supply chain, in 15 minutes or less!

[00:00:06] A good morning and Scott Luton here with you. Live on Supply Chain Now Radio, welcome back to the show. In today’s show, we’re continuing our Supply chain Bus series, a brief weekly look at some of the top news and trends across the global End to end Supply chain community. All in 50 minutes or less. Today’s episode of the Supply chain Buzz on Supply Chain Now Radio is brought to you by the Effective syndicate, a leading coaching and consulting firm that helps companies win by optimizing process and developing winning cultures.


[00:00:37] In fact, we were able to catch up with Beau Groover in the company in recent weeks, really enjoyed hearing about some of the impactful work that they’ve been doing recent months, especially in the manufacturing and warehousing sectors. And unlike many consulting firms, the been there done at Pros. Over at the Effective syndicate work side by side with all levels of the organization to help make things happen. You can learn more at the effective syndicate dot com. It’s Monday, December 2nd. Now let’s get to the buzz first. Today, worry. We are reviewing Bold 20:20 Supply chain predictions that are being made by Framingham, Massachusetts based market research and consulting firm IDC. In a story featured by our friends over at Supply chain Management Review, IDC recently released its top 10 predictions in Supply chain for 2020 and beyond. We’re going to cover the first five predictions here. Number one at a Sikh predicts that by the end of 2020, one half of all manufacturing supply chains will have invested in supply chain resiliency and artificial intel intelligence, resulting in productivity improvements of 15 percent. Prediction number 2 by 2022. Firms will dedicate 35 percent of their Logistics business process outsourcing services budget to process automation, focusing on order, inventory and shipment tracking ITCZ prediction number three by the end of 2020, half of all large manufacturers will have automated supplier and spin data analysis, resulting in a 15 percent procurement productivity gain.


[00:02:23] IDC Prediction No.4 by 2020 3 SUPPLY CHAIN micro application extensions will account for one third of all new technology investments in manufacturing and retail. And number five, by 2023, 65 percent of warehousing activities will use robots and situational data analytics to enable storage optimization increasing capacity by over 20 percent and cutting work order processing time in half. Simon Ellis Program Vise President, Global Supply chain Strategies at IDC was quoted by Supply chain Management Review in the article as stating, quote, As I think about the Supply chain in 2020 and beyond, it is about how do I use technology to advance my efforts and better solve business problems and to take advantage of new opportunities, whether it is Asia allowing to make faster decisions or a hour, or otey providing me with different kinds of data. I did not have before or potentially things like blockchain giving me a more reliable data set, not necessarily a more accurate one, but certainly a more reliable one endquote. Quote to our listeners, we ask you, what are your predictions? Send them to us at Amanda at Supply Chain Now Radio dot com. In our second story here today on The Buzz, we’re talking about a shipping disaster in the Black Sea. According to an article by Mike King over at the American shipper and freight waves, almost fourteen thousand sheep have died after a transit ship capsized off the coast of Romania in the Black Sea.


[00:04:04] The queen hand overturned Sunday, November 24th at the Port Amadei after loading all the sheep and shoving off for its journey, reportedly to the Saudi Arabian port of Jeddah. No causes of the disaster have been identified as of yet. Biblical media reports were claiming that the vessel was overloaded. Numerous local authorities attempted to save both the ship’s crew and the livestock. Thankfully, all 21 crew members survived, but unfortunately, it’s been reported that only 33 sheep were rescued out of the 14000 that the vessel was carrying. Animal welfare activists have gotten involved filing complaints about both the treatment of the animals during loading and at sea, as well as urging the European Union to take legal action against Romania. The Eurogroup for Animals is claiming that the Romanian government entities approved the queen hand to travel and ship. Animals, even though the ship was outdated, not built with animal transport in mind. And even having a variety of engine problems in recent years, a separate group, Animals International, is pushing for the replacement of live export transport with that of meat and carcasses. In case you didn’t know, Romania is the EU’s third largest sheep breeder after Britain and Spain tipped the cap to our friend of the show, Tim Doona, for sharing this story with us.


[00:05:32] In our final three stories here today, we’re gonna be focusing on the aerospace industry. So in story number three, let’s talk about air cargo. Did you know that in the U.S., different standards are in place for pilots that fly passenger aircraft and pilots that fly cargo? According to federal law, passenger pilots are required to have a minimum 10 hours of rest between flights as a result of new requirements that took effect in 2014. Yet cargo pilots are only required to have eight hours of rest between flights. As a recent article by Leslie Josef’s over at CNBC points out, new concerns are being raised, especially as e commerce. Consumer demands are putting new pressures on transportation across the End to end supply chain. Not only are some U.S. politicians taking a second look at the disparity, but several unions are also getting involved and asking for more consistency, including unions that represent pilots at U.P.S. and FedEx. The article quoted the famous pilot, Chesley Sully Sullenberger, as supporting the change. You may recall that Sully was the former U.S. Airways captain that received worldwide acclaim for his miracle on the Hudson aircraft landing that saved hundreds of lives of his passengers. Sullenberger said, quote, It’s ridiculous that we don’t have the same rest rules for cargo pilots. And the only reason we don’t is for economic reasons in quote. However, there is some support for the current status quo.


[00:07:04] The article included a quote from FedEx that read, quote, In cooperation with our pilots. FedEx has developed the best, most scientifically advanced fatigue mitigation program in the airline industry. Cargo and passenger pilots have very different schedules and forcing cargo pilots to fly. According to a set of rules developed for distinct conditions in a different industry will make them less safe. One size does not fit all when it comes to air travel safety end. Stay tuned as we monitor and monitor this story to see what, if anything, changes for cargo pilots. Big thanks to Kathy Miura Roberson of Logistics Trends and Insights for sharing the story with us. Continuing with aerospace industry and story number four on The Buzz, let’s talk about spare parts and new technologies. For starters, did you know how regulated the aircraft parts market is? In fact, sales require certification from the Federal Aviation Administration and others. And as you might imagine, the red tape can slow the whole process down. However, as reported by a Gonchar over at The Wall Street Journal, one aircraft parts maker is utilizing new technologies to improve delivery times to possibly hours from the current status quo of at least days, if not weeks. Moog Incorporated has been manufacturing parts for over sixty five years, based in East Aurora, New York. Moog is using blockchain and 3D printing to create a new type of digital marketplace for aircraft parts.


[00:08:40] George Small Moves Chief Technology Officer says, quote, The idea is that I’m going to stock these parts digitally and turn them into physical goods when I need them. It is, in the end, just trying to identify what all the inefficiencies are in the existing supply chains and then offer opportunities for improvement in, quote, move tested the combination of blockchain and 3D printing earlier in twenty nineteen, allowing Air New Zealand to order apart for a plane while it was in the air and have the part installed when it landed. The airline used Mookie’s blockchain system to order or a replacement predict the protective part for an in seat screen for an aircraft as it was in route from Auckland to Los Angeles using the blockchain process. A maintenance team in New Zealand ordered a digital file containing the park design from Singapore Technologies Engineering Ltd.. The order was then validated on MOOCs Blockchains system, which is hosted on Microsoft corporations. A Zork cloud and then Depart was printed on a Moog 3D printer in Los Angeles, sent to the airport and installed in the plane once it landed. The spare part acquisition and implementation process can take weeks. But the new approach essentially provided a just in time delivery. Michael Channeler with Gartner points out that airspace has been utilizing 3D printing for spare parts for years, but pairing 3D printing with blockchain is rather new.


[00:10:17] Big names and iconic brands are already leaning on blockchain to offer new services, as Article points out. Honeywell has introduced an online marketplace based on blockchain to allow international buyers and sellers to trade. Used aerospace parts in real time, General General Electric is also utilizing Microsoft’s Azor Blockchain Technologies platform to offer updated info on part to its customers. As you might imagine, to roll out this streamlined marketplace globally, a variety of governmental agencies, regulators and companies would have to all be aligned. But the possibilities are exciting and endless. Speaking of regulatory authorities and the aerospace industry, in our fifth and final story on today’s Supply chain Buzz, let’s check in on Boeing’s 737 Max Jets. According to a report by Alexa Larudee, aerie at U.S. News and World Report and a separate report by m.c News, the Federal Aviation Administration has recently announced its intentions to individually inspect hundreds of Boeing 737 aircraft as the company looks to get the aircraft back up off the ground. The entire 737 fleet has been grounded since March. The FAA has informed Boeing that it is no longer authorized to inspect its own aircraft prior to delivery to airlines. Leadership at Boeing has stated in separate reports that the FAA will be inspecting and approving the planes by the end of 2019.


[00:11:54] However, the FAA has stated that there is no timeline. The agency communicated in a letter to Boeing that, quote, The FAA will retain such authority until the agency is confident that at a minimum, Boeing has fully functional quality control and verification processes in place. Delivery processes are similarly functional and stable. And Boeing 737 MAX compliance design and production processes meet all regulatory standards and conditions for delegation and ensure the safety of the public and quote. And that’s a wrap for today’s episode, several of the leading Supply chain news stories and trends right here on the Supply chain Buzz on Supply Chain Now Radio. One quick programing note I’m really excited to be joining Karen Smith of Contour Brands, Sean Willams with the University of Tennessee and Karen Bursa with Liegghio City on a Supply chain Brain webcast entitled Supply chain Talent in the Digital Age. Join us at 11:00 a.m. Eastern Time on December 4th with what promises to be a very informational and entertaining session. You’ll find links to each of the stories that we featured here today on the show, notes for your convenience, including a few additional resources such as the Web Cast Registration Link. Big thanks to today’s sponsor of the Supply chain Buzz. They have the effective syndicate. And be sure to check them out at the effective syndicate dot com.


[00:13:23] To our listeners, on behalf of the entire Supply Chain Now Radio team, this is Scott Luton thanking you for joining us here today. We wish you a very successful week. Thanks everybody.

Scott W. Luton is the founder & CEO of Supply Chain Now Radio. He has worked extensively in the end-to-end Supply Chain industry for more than 15 years, appearing in publications such as The Wall Street Journal, Dice and Quality Progress Magazine. Scott was named a 2019 Pro to Know in Supply Chain by Supply & Demand Executive and was named a “2019 Supply Chain & Logistics Expert to Follow” by RateLinx. He founded the 2019 Atlanta Supply Chain Awards and also served on the 2018 Georgia Logistics Summit Executive Committee. He is a certified Lean Six Sigma Green Belt and holds the APICS Certified Supply Chain Professional (CSCP) credential. A Veteran of the United States Air Force, Scott volunteers on the Business Pillar for VETLANTA and has served on the boards for APICS Atlanta and the Georgia Manufacturing Alliance. He also serves as an advisor with TalentStream, a leading recruiting & staffing firm based in the Southeast. Follow Scott Luton on Twitter at @ScottWLuton and learn more about SCNR here:

Upcoming Events & Resources Mentioned in this Episode

Top Ten SC Predictions:
Black Sea Disaster:
Air Cargo Pilots Mandatory Rest Uproar:
Moog Using Blockchain & 3D Printing:
FAA to Inspect All 737s:
Supply Chain Talent Webinar on December 4th:
Connect with Scott on LinkedIn:
SCNR to Broadcast Live at CSCMP Atlanta Roundtable Event:
Reverse Logistics Association Conference & Expo:
SCNR to Broadcast Live at MODEX 2020:
SCNR to Broadcast Live at AME Atlanta 2020 Lean Summit:
2020 Atlanta Supply Chain Awards:
SCNR on YouTube:
The Latest Issue of the Supply Chain Pulse:

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