Supply Chain Weekly Wrap-Up 07/28/2023-08/03/2023

Republished By Plato

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Amazon opens robotics FC in Detroit

Amazon has opened its first operations facility in Detroit, a robotics fulfilment center (FC) spanning 823,000 square feet. Over 1,200 employees will work at the facility, picking, packing, and shipping small items such as books and electronics. The center will support 10 fulfilment and sortation centers and 13 delivery stations servicing Michigan. Employees will utilize innovative technology, including warehouse robots, to improve the efficiency of fulfilling customer orders.

This development is part of Amazon’s ongoing investment in technology-driven facilities to optimize its supply chain and improve fulfilment efficiency. The company has recently opened other FCs using mobile robots and robotic handling systems, signalling its commitment to automation.

Despite an expected slowdown in capital investments this year, Amazon has 231 future distribution facilities planned in the U.S., demonstrating its continuous growth and expansion in the logistics industry. The company has also shifted its fulfilment model from a national one to a regional approach, aiming to reduce expenses while maintaining faster delivery speeds. The introduction of more technology-driven FCs is expected to have a positive impact on Amazon’s supply chain, enhancing operations and improving customer service.

Fisker unveils electric truck amid supply chain issues

Fisker Inc, an electric vehicle (EV) maker, unveiled its pickup truck named Alaska, which is scheduled for production in early 2025. Positioned as a lower-priced option with high-design sensibility, the Alaska will enter the competitive EV pickup market, competing with models like Ford’s F-150 Lightning, Tesla’s Cybertruck, and Rivian’s R1T. Priced at just over $45,000, the Alaska is set to be more affordable than most rivals.

The Alaska will be built on the same platform as Fisker’s Ocean SUV and is designed to have a range of about 230-340 miles. It features a 4.5 feet bed that can extend into the cabin, making it a sporty and versatile truck. The announcement comes amidst supply chain challenges faced by Fisker and other EV manufacturers. The company missed its production targets in the last quarter due to supply chain disruptions caused by the ongoing impact of COVID-19. While some bottlenecks have been resolved, Fisker anticipates that supply chain issues might persist for the rest of the year.

Fisker’s strategy of offering lower-priced EVs with appealing designs could attract consumers, especially if they can manage supply chain challenges effectively. However, addressing these disruptions will be crucial to meeting production goals and staying competitive in the rapidly growing EV market.

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California ports get $700M in federal grants

California has awarded millions of dollars in grants to several ports, including the Port of Oakland, Port of Long Beach, and Port of Los Angeles, to improve the movements of goods in supply chains. The grants, totalling $735 million, are part of the state’s efforts to modernize and expand its ports’ capacity to handle the surge in cargo volumes experienced during the pandemic. The investments aim to reduce pollution, eliminate bottlenecks, and create a more efficient distribution network.

The grants will support specific improvement projects at each port, addressing equipment constraints, container storage space, and congestion issues. By making these critical investments, California aims to keep up with the increasing demand for goods in an environmentally sustainable manner and bring its distribution process into the 21st century.

The impact of these grants on the supply chain will be significant, as they will enhance the efficiency and capacity of the state’s global trade gateways. Improved port infrastructure and operations will lead to faster and more reliable movement of goods, reducing logistics delays and enhancing the overall supply chain performance in the region.

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