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Supply
Chain by the Numbers |
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- Jan. 11, 2024
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Ocean Container Rates Soaring; Walmart Covering Dallas with Drones; Supply Chain Control Towers; Supply Chain Spending on AI Less than Other Functions |
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63% |
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That is how much the cost to ship a 40-foot container from Asia to the US West Coast has increased since November, to about $2700. That according the Reuters newswire earlier this week. That is largely due to the current chaos in ocean shipping through the Red Sea to or from the Suez Canal, with commercial ships under frequent attack from so-call Houthi militants in Yemen. That even though ships sailing to the US West coast are in no danger of such attacks. SCDigest think some carriers are just looking for anyway to claw back some profits after seeing rock bottom rates in 2022. Rates from Asia to North America's East coast also climbed 55% to $3,900 per 40-foot container. |
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| That is how much companies globally will spend on so-called Supply Chain Control Towers (SCCT) in 2025. That according to a new report from ABI Research. That actually doesn’t seem like all that much to SCDigest. ABI also found that manufacturers, logistics service providers (LSPs), and retailers are among the highest adopters currently, with a 17%, 18%, and 15% share of revenues, respectively. ABI says that the SCCT market is a convergence of three types of providers: established supply chain system providers bringing their point solutions into a single platform, big data analytics firms crafting their solutions into SCCTs, and emerging supply chain software vendors focused entirely on end-to-end network solutions |
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5.8% |
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| That is the share on average of 2024 supply chain budgets that will be going to generative AI (GenAI) development. That according to a survey by Gartner of chief supply chain officers, the results of which were released this week. The report also found that half of supply chain leaders plan to implement generative AI-based tools in the next 12 months, with an additional 14% already in the implementation stage. “CSCOs see GenAI as supportive of their broader digital transformation objectives,” said Noha Tohamy, Distinguished VP analyst in Gartner’s Supply Chain Practice. She added that The challenge for many of these organizations over the next 12 months will be in scaling their pilot projects to broader adoption.” Gartner also says that the survey shows that supply chain lags other enterprise functions, like marketing and sales, in adoption of AI. |
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That is the share of the Dallas-Ft. Worth metroplex that Walmart will have the ability to make drone deliveries to by the end of the year, Walmart CEO Doug McMillon said this week at the CES conference in Las Vegas. Walmart is partnering with Google’s Wing unit and Zipline on the drone delivery systems. Walmart says its service area will cover 1.8 million households with deliveries made within a 30-minute window. Of the 120,000 items in a Supercenter, 75% meet the size and weight requirements for drone delivery if - SCDigest notes – they are ordered alone. This will mark the first time a US retailer has offered drone delivery to this many households. Wing and Zipline are both approved by the Federal Aviation Administration and have already been operating in Texas. Wing was the first drone delivery company in the US to receive air carrier certifications and now is the first to receive FAA approval for an entire metro area. Maybe drone delivery is now a reality. 