Weekly Roundup - Apple Production Shift and Logistics Innovations from DB Schenker and Otto

Retailers face significant challenges in creating value due to unpredictable consumer behavior, reliance on suppliers, labor market fluctuations, and thin margins. While retail giants have dominated value creation, many smaller retailers are struggling, with one in four now destroying value. However, scale isn’t the sole determinant of success.

An analysis of over 280 retailers shows that bold actions and disciplined execution can enable retailers of any size to create significant value. Some smaller retailers, termed “movers,” have outperformed by improving in areas such as operating margins, growth, and capital efficiency. These companies succeeded through well-defined growth strategies, investment in technology and AI, customer focus, cost management, and effective capital allocation.

To succeed, retailers must adopt a clear strategy for growth, leverage technology, enhance customer loyalty, manage costs efficiently, and align capital planning with long-term goals. Ultimately, value creation is achievable for all retailers, regardless of size, through courageous decisions and timely execution.

Apple’s decision to produce its latest iPhone 16 series in India highlights the company’s strategy to diversify its supply chain amid geopolitical tensions, particularly between the U.S. and China. Traditionally, Apple relied on China for its high-end models, while India handled low-end versions. However, now Apple is mass-producing its premium Pro series in India, showcasing the country's growing manufacturing capabilities. India’s Production Linked Incentive scheme has helped attract major tech companies like Apple to expand manufacturing. By 2025, India is projected to account for 23% of Apple’s global production. Although China remains a critical hub due to its expertise in complex manufacturing and skilled labor, India and Vietnam are gaining traction as alternative production sites. However, challenges like the slow upskilling of labor and India's strained relationship with China could impact future growth in India’s manufacturing capacity.

DB Schenker has partnered with Trailer Dynamics and CATL to develop battery-swapping technology for electric trailers in Europe. This initiative aims to enhance efficiency and reduce emissions in heavy goods transportation. DB Schenker, a leading logistics provider, is focused on sustainability and innovative transport solutions, as shown by its involvement in projects like transporting wind turbine blades for Envision Energy. The collaboration with Trailer Dynamics and CATL will explore the feasibility of battery-swapping stations to extend the range and uptime of electric vehicles. This technology, which can reduce charging times to five minutes, will address infrastructure challenges and support the transition to zero-emission transport. Each company brings expertise: DB Schenker in logistics, Trailer Dynamics in eTrailer systems, and CATL in battery technology. More organizations are expected to join the initiative in the future.

The Otto Group has become the first company in Europe to deploy the "Stretch" robot from Boston Dynamics, designed to improve operational efficiency in response to labor shortages in the warehouse sector. Introduced on September 11, 2024, Stretch is operational at the Hermes fulfillment center in Haldensleben, Germany, primarily handling clothing and shoes. Equipped with autonomous navigation, cameras, sensors, and a conveyor system, the robot can unload up to 500 packages per hour, handling boxes weighing up to 23 kilograms. This move is part of a broader strategic partnership between Otto Group and Boston Dynamics, aiming to enhance logistics processes and customer service. By 2025, the Otto Group plans to integrate Stretch across its locations, as part of a long-term strategy focused on scalable technological investments in AI and robotics. These advancements, including other innovative logistics centers, reflect the company's commitment to shaping the future of logistics and improving the customer experience.

Read more on recent highlights

• Impact on supply chains: What changes with the new border controls
• INVERTO: Red sea crisis forces Christmas retail rethink
• How LEGO is building towards a more sustainable future
• China’s continuing export surge likely to invite more pushback
• Zara owner Inditex says autumn sales stronger after first-half growth slowdown
• DSV to buy DB Schenker from Deutsche Bahn in US$15.8bn deal
• Daimler Truck to start series production of fully-electric heavy truck
• Central Europe factories and retailers shut in flood-hit areas

Dive deep into research

"Shaping closed-loop supply chain dynamics: Mitigating the bullwhip effect and improving customer satisfaction in production systems with material reuse" by Fernández-Arribas, C.L., Ponte, B. and Fernández, I. (2024)

"Joint management strategy of carbon allowance in the supply chain under free carbon allowance" by Song, H., Ding, M. and Dai, Y. (2024)

Events

Logistics Summit

When: 9. - 10. October 2024

Where: Dusseldorf, Germany

What: Engage in discussions with top experts on the future of logistics, the transformation of global supply chains, and the impact of artificial intelligence on the industry. Get inspired by renowned speakers and discover the strategies, logistics trends for 2024, and best practices that can help you thrive in a rapidly changing market environment.

Mobile Robotics Summit

When: 9. - 10. October 2024

Where: Dusseldorf, Germany

What: The Mobile Robotics Summit is the conference and expo for digitization and innovation for the implementation of mobile robotics systems in enterprise operations. Two thrilling days including top-class speakers, panel discussions among leading experts, workshops with applicable expertise such as innovative providers in the exhibition area.

tcworld 2024

When: 5. - 7. November 2024

Where: Stuttgart, Germany

What: The full range and depth of technical communication topics will be on offer at the world's largest industry event with the parallel tcworld conference and trade fair. This includes: Content Creation and Delivery,  Content Strategie and Information Architecture, Language and Translation Technologies, Software Documentation, Terminology, Translation, User Involvement and Feedback, UX and Accessibility and Visual Communication. A particular focus is on the topic of law and standards with valuable insights into the latest developments and best practices on current legal developments, ecodesign, instructional videos and product safety.