Weekly Roundup - Coca-Cola’s Site Closures, Uber Freight’s Logistics Advancements, and Unilever’s Energy-Efficient Storage

The World Economic Forum, in collaboration with Kearney, has released a white paper, From Disruption to Opportunity: Strategies for Rewiring Global Value Chains. It explores how global manufacturers are responding to persistent disruptions such as geopolitical tensions, climate change, and emerging technologies. The report outlines five key trends reshaping global value chains: shifting from global to multi-local networks, embracing digitalization, moving from economies of scale to economies of skill, prioritizing sustainability, and transitioning from cost-driven to customer-value-driven strategies.

The report mentions the core technologies used in demand forecasting, which vary by company size. Smaller companies (revenues of $1-$10 billion) are more flexible, rapidly adopting AI for forecasting, while larger companies ($75 billion+) struggle with legacy systems and still rely heavily on Excel and APS. AI is seen as a critical tool for improving forecasting accuracy and resilience, yet many organizations face hurdles in fully automating these processes.

The shift from global to multi-local value chains ****is another major theme. Leading manufacturers are moving towards regionally-connected networks, focusing on sourcing and manufacturing "in the region, for the region." This approach helps reduce risks associated with clustering and global disruptions. Strategies like pre-qualifying suppliers across regions and enhancing collaboration throughout the value chain are crucial for building resilience and flexibility in supply chains. These efforts are essential to fortify value chains against future turbulence while maintaining performance, sustainability, and cost-efficiency.

Coca-Cola plans to close five production and logistics sites in Germany by 2025, impacting 505 jobs, with 207 positions relocated and 78 new jobs created. The closures affect Cologne, Neumünster, Berlin-Hohenschönhausen, Bielefeld, and Memmingen, as the company seeks to improve efficiency in a competitive market. The move is driven by changes in beverage logistics, as large retailers shift to central warehousing and smaller customers use wholesalers, leading to reduced direct orders. The union NGG criticized the closures, citing concerns over job losses and environmental impacts due to increased transport distances. Talks with employee representatives are set to begin to mitigate job cuts. The closure of Cologne's plant is particularly significant for the city, and Coca-Cola continues to face criticism despite record sales in 2023.

Uber Freight has introduced significant advancements to its logistics platform at its annual conference, "Deliver," in Texas. Key updates include integration with Uber Direct for improved delivery options, modular Transportation Management System functionality, and flexible procurement software. These developments aim to enhance transparency, control, and efficiency across the supply chain. Uber Freight has also unveiled its Design Partner Program, allowing customers to collaborate on product innovation. In the past year, Uber Freight managed nearly 24 million loads and saved over $1.5 billion for shippers through AI-optimized networks and procurement strategies. The platform's enhancements are designed to streamline operations, improve visibility, and offer more intelligent data handling.

Unilever and Energeering are collaborating to transform Unilever's Heppenheim frozen storage facility into an energy-efficient storage solution. Since ice cream can withstand temperature fluctuations of up to 4°C without quality loss, the energy supply to the cold store can be reduced during peak demand times. This flexibility, managed with artificial intelligence, allows the facility to act as an energy storage system by cooling down more when renewable energy is abundant and reducing cooling during high electricity prices. This approach not only lowers energy consumption and costs but also supports renewable energy integration. In a test run, Unilever's Heppenheim site reduced electricity use by 9.5%, with potential savings in the millions across its global cold storage network.

Read more on recent highlights

• How hurricane Helene jolted the global chip industry
• Apple may need to turn to China after Indian Tata plant fire, sources say
• Extreme weather around the world risks boosting food bills
• European automakers most at risk from US dockworkers strike, analysts say
• Germany adopted a new mobility data law to help navigation systems in better route suggestions
• EU moves to delay deforestation rule after huge pushback
• Spare parts logistics: GLP builds new logistics center for Renault near Cologne

Dive deep into research

"A comprehensive inventory management model with weibull distribution deterioration, ramp-type demand, carbon emission reduction, and shortages" by Palanivel, M., Venkadesh, M. and Vetriselvi, S. (2024)

"Artificial intelligence and machine learning in purchasing and supply management: A mixed-methods review of the state-of-the-art in literature and practice" by Spreitzenbarth, J.M., Bode, C. and Stuckenschmidt, H. (2024)

Events

Big Data Conference Europe 2024

When: 19. - 22. November 2024

Where: Vilnius, Lithuania

What: Conference focuses on technical discussions in the areas of Big Data, High Load, Data Science, Machine Learning and AI. The conference comprises a series of workshops and sessions, aimed at bringing together developers, IT professionals, and users, to share their experience, discuss best practices, describe use cases and business applications related to their successes. The event is designed to educate, inform and inspire – organized by people who are passionate about Big Data and Data Exploration.

Global Supply Chain & Logistics Summit

When: 20. - 22. November 2024

Where: Frankfurt, Germany

What: This event will bring together industry leaders, innovators, and experts to discuss the latest trends and challenges in global supply chain management and logistics. Attendees can expect insightful panel discussions, networking opportunities, and workshops focused on topics such as supply chain resilience, sustainability, and digital transformation. With Frankfurt’s central role in European trade, the summit promises to be an invaluable platform for fostering collaborations and sharing cutting-edge solutions for a rapidly evolving industry. 

SCF 2024

When: 03. - 04. December 2024

Where: Berlin, Germany

What: Supply Chain Forum Europe by PI Apparel is the event for senior supply chain leaders in fashion. It provides a forum for executives to exchange insights, learn from each other, and adapt to the evolving demands of the profession.