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

Yulia Fedorova

22 Mar 2024

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
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)

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