Each week we look for the best blog posts, articles, and commentary on supply chain orchestration, logistics innovation, and industry news to share.
This week we're reading about e-commerce's effect on the logistics and inventory trends for CPG companies, its growth in Europe, a look at the supply chain and logistics use cases for machine learning, and an insider's look at VW's global components reorganization and Schneider Electric's foray into the cloud.
E-commerce Gains Lead General Mills to Expand Logistics Network - By Kate Patrick (@katepatrick_), Supply Chain Dive (@SupplyChainDive) - On their Q4 2018 earning call, General Mills shared that global e-commerce sales were up 50% from last year and up more than 70% in North America. To better meet demand they are investing in making their supply chain nimble and flexible by expanding their distribution network and improving their cold chain.
Ecommerce in Europe Grew 11% in 2017 to $624 Billion - By Mike O'Brien (@MikeobMCM), MultiChannel Merchant(@mcmerchant) - A new industry study and repot by Accenture and other industry players shows that European e-commerce grew 11% in 2017 and on track to be 13% in 2018. Also interesting to note that 38% of shoppers opting for e-commerce in Europe ordered from abroad, with half of them buying from other EU countries.
10 Ways Machine Learning Is Revolutionizing Supply Chain Management - By Louis Columbus (@LouisColumbus), Forbes (@Forbes) - From reducing freight costs, to improving supplier delivery performance and improving production and factory scheduling, this article references a number of studies and their results related to supervised and unsupervised machine learning use cases for logistics and the supply chain.
VW Realigns Global Components Business - By Marcus Williams, Automotive Logistics (@Auto-Logistics) - Volkswagen is reorganizing its global components business. With 56 plants in the new Group Components network and a global workforce of around 80,000, they produce components from engines, transmissions, and electric motors to steering systems and lightweight parts. While electric cars need fewer moving parts, parts manufacturing is likely to be defined by a greater range of products as new vehicle technology runs parallel to the production of parts for traditional vehicles.
A Journey to the Cloud Enables the Push to a Digital Supply Chain - Robert J. Bowman, SupplyChainBrain (@SCBrain) - Good read on Schneider Electric and their efforts to digitize and transition their supply chain systems to the cloud. At the start of their initiative, five years ago, they were operating a mind-boggling 125 ERP systems, 30 warehouse management systems and for the transportation function alone, some 1,450 suppliers.