Supply Chain Management Updates to Note - January 2019

As we enter the final week of the first month of 2019, here are a few management updates to consider.

All in the family

Nearly 20% of the world’s entrepreneurs are working with family members, according to the 2019 Global Entrepreneurship Monitor Global Reports, sponsored by Babson College. Furthermore, 6% of individuals aged between 18-64 in 27 countries are part of the gig economy and the sharing economy. “The Global Entrepreneurship Monitor Global Report shows that the global economy nourishes entrepreneurs of all kinds. There is a lot of media attention for innovative startups, however entrepreneurial employees, family business entrepreneurs, and small-scale established entrepreneurs also play a key role in national and local economies,” said coauthor and Utrecht University Entrepreneurship Associate Professor Niels Bosma. This year, results also confirmed that entrepreneurial activity in the gig and sharing economy is substantial in all parts of the world.

Getting real with RILA

As the 116th Congress convenes in Washington, DC next month, The Retail Industry Leaders Association (RILA), announced the launching of an ambitious retail-focused policy agenda for 2019. As the trade association for domestic retailers, RILA will work with members of Congress and the Administration to advance the industry and consumers throughout the year ahead,” says Sandy Kennedy, president of RILA. “Throughout the year ahead, RILA will advocate for trade policies that promote efficient and reliable supply chains; privacy and data protection laws that protect consumers; payment reforms that enhance competition and transparency; and workplace policies at the state and federal level that promote both flexibility and the preferences of retail employees.”

BREXIT in the air

The International Air Transport Association (IATA) said that, although most cargo flights will go ahead despite the decision of UK Members of Parliament to reject the UK-EU Brexit agreement, there remains uncertainty for shippers and airlines about post-Brexit air connectivity. A “no deal” Brexit could lead to a cap on flights that will stunt important economic opportunities and may lead to higher prices for consumers. The proposed guidance from the EU Commission in the event of “no deal” calls for the current level of flights between the UK and the EU to be maintained, but does not allow for an increase in flight numbers in 2019. “That current flight levels will be protected even with a hard Brexit is an important assurance,” says Alexandre de Juniac, IATA's Director General and CEO. “But with so little time left until Britain leaves the EU, airlines still do not know exactly what kind of Brexit they should be planning for.”

Logistics real estate advances

San Francisco-based Prologis has a reputation for being forward-looking when it comes to Environmental, Social and Governance (ESG), says Jeannie Renne-Malone, Vice President, ESG Prologis. She says that 2018 was a year of important ESG milestones and Prologis “firsts” across the globe that are tied to its business strategy. Among the achievements, she cites the first green bonds to be issued globally by a logistics real estate company. Prologis affiliates issued green bonds in Europe last March and November, and in Japan in August. She also notes that Prologis was the first logistics real estate company to partner with local workforce training programs (the Prologis Community Workforce Initiative, or CWI) and address shippers' growing needs for skilled labor by putting community members in touch with career-building job opportunities in logistics in Miami and Southern California.

Great Lakes looking good

The St. Lawrence Seaway Management Corporation (SLSMC) announced that tonnage on the waterway during the 2018 navigation season totaled 40.9 million tons. The highest result since 2007, much of the credit for the increase in tonnage can be given to healthy movements of grain, the best on record since the turn of the century. Marketing efforts under the “Highway H2O” initiative served as a catalyst to spur increased movements of a broad range of cargoes including grain, road salt, stone, cement, gypsum and refined fuels. “We are very pleased with the results recorded over the past year” said the SLSMC's President and CEO, Terence Bowles. “After completing the first year with Hands Free Mooring installed at all of our high-lift locks, it is gratifying to see that our efforts to boost system efficiency and heighten our competitive position are bearing strong results.”

Street turns evolution

Avantida, an E2Open company, announced that Maersk has started to offer street turn services on their platform in the United States and Canada. This represents Avantida's first step into the U.S. and Canadian markets. Empty container triangulation, or the interchange of an intermodal container outside of a marine terminal or yard (street turns), is a well-known activity in the US. By offering this on Avantida's online platform, transporter and logistics companies are freed from the administrative hassle of having to request and process street turns manually. Through the automated request process offered by Maersk, dispatchers and planners requesting street turns may ideally, obtain an accurate, reliable response in a matter of minutes. So not only will they potentially enjoy the time and cost savings of carrying out street turns, they will also benefit from a fully digital process and aid in reducing CO2 emissions.

Striking it rich

In an industry first, the International Council on Mining and Metals (ICMM) announced new membership requirements to advance the sustainability performance of the mining sector, committing members to implement the United Nations Guiding Principles on Business and Human Rights. Speaking at the UN Annual Forum on Business and Human Rights, Tom Butler, ICMM's Chief Executive announced ICMM's new performance expectations that will define what mining with principles looks like in practice, by setting a benchmark for the industry's environmental and social performance. “ICMM's Council of 27 CEOs have shown real leadership in being the first industry body to commit to implementing the UN's Guiding Principles on Business and Human Rights,” he says. “Importantly, other companies will also be able to publicly commit to our performance expectations and I hope this will lead the broader industry to further improve its social and environmental performance.”

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