Weekly Roundup - Lufthansa Strikes Aftermath, Shein Supply Chain Technology and Gartner Tech Trends

Lufthansa has incurred significant financial losses amounting to 250 million euros this year as a result of strikes, according to Remco Steenbergen, the airline's finance chief. The uncertainty surrounding the strikes has resulted in reduced bookings for passenger flights and air freight orders, further amplifying the financial impact. Ground staff strikes at major airports affected 100,000 passengers, while strikes involving cabin crews and aviation security staff at several airports further exacerbated the situation. Lufthansa and the Verdi union are set to engage in arbitration to address the wage dispute regarding increased compensation for ground staff.

According to The Wall Street Journal, the Chinese fast fashion giant Shein is set to market its supply chain technology to global brands and designers. Shein's Executive Chairman, Donald Tang, described this initiative as "supply chain as a service." Shein's manufacturing model involves contracting with thousands of factories in China to produce tens of thousands of new styles daily. By leveraging real-time data to quickly analyze demand and replenish orders as needed, Shein has significantly reduced storage costs and limited inventory waste, resulting in ultra-low prices for its products.

Gartner has identified eight strategic supply chain technology trends in 2024 that are set to benefit supply chain tech leaders and CSCOs by providing opportunities to support new business models, automate decision making, and foster ecosystem collaboration. The trends are driven by two broad themes: the need to leverage emerging technologies to control and protect businesses, and new opportunities for competitive differentiation through the integration of humans and machines.

China’s state-owned Cosco Shipping is building a state-of-the-art, automated port in Chancay north of Lima, which is expected to redefine how shipping lines will service the west coast of South America. The new port's capabilities, crane setup, and water depth are anticipated to redirect trade through neighboring countries, affecting ports in Chile, Peru, and Ecuador. This development is expected to generate hundreds of thousands of containers in trans-shipment, benefiting importers and exporters in Peru. The construction and operation of this port are likely to transform container shipping on the west coast of South America, impacting not only Cosco's rivals but also the geo-economics of maritime trade and the realignment of global supply chains.

Read more on recent highlights

• Unilever takes tougher stance on supply-chain emissions
• Technology still doesn’t supply the insights needed for supply chains
• EU approves watered-down human rights and supply chain law
• U.S. grocery giants profited from pandemic-era supply chain problems
• Nestlé launches new projects to reduce emissions in cocoa supply chain
• Tim Cook praises China’s ‘critical’ role in Apple’s business
• Accenture acquires Flo Group to expand supply chain logistics capabilities in Europe

Dive deep into research

"Designing a changeable multi-level supply chain network with additive manufacturing capability and costs uncertainty: a Monte Carlo approach" by Pardis Roozkhosh, Alireza Pooya, Omid Fard and Rouholla Bagheri (2024)

"Production disruption in supply chain systems: impacts on consumers, supply chain agents and the society" by Na Liu, Shuyun Ren (2024)

Events

Smart Manufacturing World Summit

When: 3. - 5. April 2024

Where: Stuttgart, Germany

What: The current phase of industrial development continues to advance into the integration of digital technologies, automation, and data exchange. The innovative, new capabilities of AI in R&D and manufacturing are leading to a vision of the future that opens a new era in the collaboration between humans and machines. Join the Smart Manufacturing World Summit to hear from the industry’s top practitioners and suppliers on how they adapt to an ever-changing environment.

IOT Solutions World Congress

When: 21. - 23. May 2024

Where: Barcelona, Spain

What: Looking to stay ahead of the curve in the rapidly-evolving world of industry? Look no further than IOTSWC 2024 – the premier event for digital transformation trends and disruptive technologies. At IOTSWC 2024, you’ll have access to the latest insights and best practices from thought leaders across the industry, as well as exclusive previews of cutting-edge technologies and game-changing innovations.

Viva Technology 2024

When: 22. - 25. May 2024

Where: Paris, France

What: VivaTech organizes Europe’s biggest technology and startup event each year, over four exciting days in Paris. We unite the most disruptive topics in tech, rule-breaking entrepreneurs, and the world’s largest technology breakthroughs, building an ecosystem where business gets done.