Impact of Pulling out of the Paris Climate Agreement on Manufacturing & Transportation

Impact of Pulling out of the Paris Climate Agreement on Manufacturing & Transportation

This post comes to us from Kevin Jessop of Cerasis, a top freight logistics company and truckload freight broker.

The Paris Climate Agreement. Let those words hang for a moment.

Throughout the course of the 2016 election and now the Trump Administration, many Americans have expressed dissatisfaction with the Paris Climate Agreement. True to campaign promises, the new Administration has started the process of removing the U.S. from the agreement, which has major implications for supply chains and shippers around the globe. While the Trump Administration’s impact on supply chains has been discussed previously on Cerasis’ blog, the president’s decision to leave the agreement has shocked the industry, and you need to understand why and what is really going to happen over the next four years.

What Is the Current State of the U.S. in the Paris Climate Agreement?

This may come as a shock, but the Paris Climate Agreement has only been in force since November 4, 2016. As a result, the U.S. has not yet enacted changes under the agreement. The only measure that would have fallen under the Agreement’s terms is the continuation of Customs and Border Protection’s (CBP) rules for maritime statutes.

Lawmakers would have likely passed new legislation to increase environmental scrutiny of supply chains and shippers over the next few years. Moreover, the U.S. would have sent monies to Convention of Countries within the Agreement to help fund eco-conscious goals. The Administration’s actions indicate such changes are not likely to occur, but they could still happen. But, how?

What Is the Timeline for Withdrawal?

The full text of the Paris Climate Agreement is available online through the United Nations Framework Convention on Climate Change (UNFCCC). Article 28 defines the process through which a member of the original Convention may withdraw from the Agreement, and it is a surprise to many to learn that the new Administration cannot simply flip a switch.

Article 28 states that any country wishing to withdrawal may only do so after three years have passed since the agreement went into force. Since the enforcement date was November 4, 2016, a country cannot submit a notification of withdrawal until November 4, 2019. Now, there is another side of the withdrawal.

To prevent countries from withdrawing due to political changes and safeguard the longevity of the planet, any withdrawal still requires a one-year term from the date of notification. In other words, the Administration cannot effectively withdraw from the agreement until at least November 4, 2020.

The 2020 Presidential Election is scheduled for November 3, 2020. This means that if President Trump follows through with submitting a notification of withdrawal in 2019, actual withdrawal will not occur until the day after the 2020 election. Therefore, the question becomes, “How would a notification of withdrawal play out during the election? And if so, will it help or hurt his chances or re-election?”

The precedent for polarization during the previous election cycle indicates President Trump will proceed with plans to withdraw the U.S. from the Agreement when the time comes. The June announcement is merely a call to action to prepare for withdrawal over the next few years. So, what does that mean to both domestic and international supply chains?

The Impact of Withdrawal on Supply Chains.

There are only three countries on the planet, counting the U.S. intention to withdraw, that are not part of the agreement now. This means that every foreign-originating business transaction with U.S. manufacturers, distributors or other partners, except for Syria and Nicaragua, will be at risk. The governments of other countries may look unfavorably at working with U.S. companies due to the new Administration’s plans.

Multiple big-business empires, ranging from Facebook to Goldman Sachs, have condemned the move to withdraw. According to BBC News, part of their rationale is simple. The changes the Agreement dictates reflect existing concerns and actions that many U.S. businesses, including shippers, have already undertaken. Even ExxonMobil, a company whose previous CEO holds the title of Secretary of State, urged the new Administration to remain in the Agreement.

These major companies have already invested time and money in energy-efficienct, eco-conscious programs, and many of their business-to-business partners have followed the same pattern. With the overwhelming majority of the world’s countries committing to this cause, there will be an opening of the “floodgates for businesses, scientists and engineers to unleash high-tech, low-carbon” technologies. As a result, the U.S. could fall further behind the global engineering and science goal, which helps all businesses succeed. In other words, domestic companies may have a more difficult time finding the labor or technologies needed to maintain profitability in the interim.

Is There a Much Darker Side to Withdrawal?

Without getting into a discussion on the science behind global warming, it is important to note things that have happened that may continue if global warming continues. For example, sea levels had risen 2.6 inches from 1993 to 2014, reports the National Oceanic and Atmospheric Administration (NOAA). If left unchecked, numerous ports, businesses, cities and whole seaboards could be lost in the next few decades. To ensure stability and growth along long-term goals, this is a risk that must be mitigated immediately.

The rising sea level is a fact in the heavily disputed conversation about global climate change.

For shippers and supply chains, the risk of not doing anything is too great. Thus, the new Administration means well, but withdrawing from the Agreement is not a change that will impact businesses before 2020. Furthermore, the backlash from the public toward companies that abandon eco-conscious goals could be severe. Shippers could face higher tariffs and additional troubles in shipping goods domestically or abroad.

It is in your company’s best interest to pursue energy-efficiency goals, including working with well-known partners, like Cerasis, to help you reduce waste, eliminate redundancy and continue making healthy profits throughout the future, regardless of who sits in the Oval Office.

This post originally appeared on Cerasis’ blog.

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Drones – A “Buzz” Kill to Supply Chain Optimization?

Drones – A “Buzz” Kill to Supply Chain Optimization?

Despite significant technological advancement, drones may have a limited impact on supply chain optimization in the near future.

This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.

From the military designs of the early 20th century to modern commercial development in 2017, drones have been making their presence widely known in the market. While military drones may have paved the way for commercial drone development, they have quite different purposes.

Drones provide much value, where traditional alternatives (such as helicopters or planes) fall short. Drone usage in supply chain optimization is still in its infancy. However, I am not convinced that drones are the solution going forward.

Note: For my analysis, I will be focusing on commercial drone usage in the supply chain.

A Timeline of Major Military Drone Development

  • 1918: Kettering Bug. First modern drone concept used as a “flying bomb.”
  • 1935: DH82B Queen Bee. Used as target practice for anti-aircraft weapon training.
  • 1964: Lightning Bug 147SC. Used for surveillance.
  • 2001: MQ-9 Reaper. Used as a hunter predator.

Source

Drones provide many advantages, such as mobility, cost effectiveness, ability to move goods, and camera technology. Although drone development is rapidly advancing, many challenges currently exist. Limited battery life, constrained operational range, collision liability, proneness to hacking, and even invasion of privacy are all legitimate challenges.

Commercial Drone Fast Facts

  • Made of light composite materials.
  • Typically have two to five rotors.
  • Controlled by either remote control or GPS.
  • Flight time ranges, but generally falls between 12-27 minutes.
  • Battery powered.
  • Operational range varies from 200 meters to 7 kilometers.

Current Drone Usage in the Supply Chain

Large retailers such as Walmart and Amazon are already investing significant capital in drone technology. On December 6, 2016, Amazon successfully completed its first beta trial of drone package delivery, called Prime Air, in Cambridge, U.K.

Here’s how it works:

  • Customers place their orders online as usual.
  • The package is prepped at the regional fulfillment center.
  • Drones are then dispatched from the center with the package.
  • Customers place QR codes on their property to indicate the drop-off point.
  • The package is delivered at the customer’s address within 30 minutes.
  • The drone is operated by GPS and handles up to five pounds of cargo.

To reinforce this effort, Amazon is currently expanding Prime Air in other parts of the U.K., France, Germany, and Italy. In addition, the company is seeking up to 1,300 small warehouse locations across Europe, with a prioritization for facilities near urban areas.

Walmart, on the other hand, is taking a different approach to managing their supply chain. Instead of focusing on package delivery, Walmart is testing the use of drones to monitor inventory in their warehouses.

Employees currently catalog merchandise with hand-held scanning devices and often need to use forklifts in the warehouse. Instead, the drone could move up and down the shelves cataloging inventory at a much quicker rate. Walmart claims that the drones “could help catalog in as little as a day what now takes employees about a month.” This program is expected to begin in at least one distribution center in 2017.

What about Legal Issues?

In the United States, commercial drone usage is still pretty limited. Below is a highlight of Federal Aviation Administration (FAA) commercial drone regulations.

  • Must have a Remote Pilot (no GPS allowed).
  • Must be less than 55 lbs.
  • Must undergo pre-flight check.
  • Must keep aircraft in sight.*
  • Must fly under 400 feet.*
  • Must fly during the day.*
  • Must not fly over people.*
  • Must not fly from a moving vehicle.*

*Indicates that these regulations can be waived.

Supply chain drone usage in the United States is currently limited due to these regulations. In the future, I expect many of these regulations to ease or change outright with advancements in drone technology. When this will occur is unknown.

However, other countries such as the United Kingdom are quicker to enact regulations by virtue of the Civil Aviation Authority (CAA). As a result, companies like Amazon have already been testing drones for supply chain optimization there.

Significant Hurdles

Although drone technology is gaining much media attention, there are legitimate challenges to drone commercialization in the supply chain.

While many legislative bodies attempt to develop drone regulations, concrete legislation is lacking in many countries due to fluid technological changes. In order for the market to fully develop, a legislative framework needs to be established. Companies will be reluctant to invest significantly in drone technology until legal parameters are established.

Another challenge is in regard to insurance and liability. With potentially thousands of (unmanned) drones flying only hundreds feet above the ground, insurance will surely be required. In the event of a drone collision with individuals, property, aircraft, or other drones, who then is liable? If the drone is piloted by a human, would he/she be liable? On the other hand, if the drone is GPS-enabled, would the technology be to blame? Surely some of these questions will be answered in contracts between insurance companies and suppliers, but with such uncertainty, premiums will undoubtedly be high.

Then there’s the question of rural vs. urban delivery. Amazon Prime Air is predominately testing drone delivery in rural areas. However, 80.7% of U.S. and 90.1% of the U.K. population live in urban areas.

Package deliveries in urban areas are via mailbox, left by the door, or hidden (to avoid theft). In other words, human judgement is used to deliver the package most appropriately. For customers in large apartment buildings, drone delivery is very limited. Perhaps these limitations could be offset with designated landing areas on rooftops, despite the fact that additional effort by the customer may be needed to retrieve the package.

Last, but certainly not least, is the impact of weather conditions. Wind, rain, snow, and extreme cold/heat all impact drone performance. Since current drones are not very heavy, any significant wind will 1) blow the drone around making it harder to control, and 2) use additional battery life to remain stable. Since drones incorporate many electronic components, rain and snow increase the chance of malfunction.

Furthermore, most drones utilize Lithium Polymer batteries — these batteries are prone to weaker performance in extreme cold and heat. According to Batteryuniversity.com, most Li-ion batteries stop functioning below -4°F.  Additionally, battery performance is reduced 40% at 104°F and 50% at 113°F. The combination of all these weather conditions certainly provides logistical challenges for drone delivery and supply chain usage.

Is There Any Hope for Drones in the Supply Chain?

The short answer is yes, but in a limited manner.

With the logistical and technological challenges regarding drone delivery, I just can’t see e-commerce firms effectively managing the process outside of rural areas with optimal weather conditions. In the future, this could change, but it would require significant legal, technological, and customer adjustment for the process to be superior over the current state.

However, drones open other opportunities for supply chain optimization, such as warehouse inventory management (as with Walmart), infrastructure monitoring, surveying, or even security. For example, shipping firms such as FedEx or UPS could utilize drones to monitor traffic and optimize drivers’ routes based on real-time data. Additionally, energy companies could use drones — as opposed to helicopters or planes — to monitor pipelines. Finally, engineers could use drones to inspect dams, highways, and buildings more efficiently.

I have no doubt that the drone market will continue to expand. According to Visualcapitalist.com, by 2025, the U.S. economy is expected to see an increase of $82 billion and creation of at least 100,000 jobs. However, their impact to supply chain optimization remains vague to me.

About the Author

Matt Steckowych graduated from the University of New Hampshire in 2011, with a B.S. in Business Administration and is currently enrolled in the part-time M.B.A. program. He is a Salesforce.com Administrator at John Hancock in Portsmouth, NH.

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Emerging Trends in Automation: What it Means to Supply Chains

Emerging Trends in Automation: What it Means to Supply Chains

This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.

Imagine a world where automation comes together with technology to deliver products without human intervention. An order is placed by a consumer. 3-D printers pick up the details and print the finished product. It’s then picked by robots from the shelves, packaged and placed into a self-driving truck. The trucks leave the facility, and drones are automatically dispatched from the truck to deliver products while moving. The truck never stops until arriving for reloading.

This example generates a huge amount of data that can leverage in the supply chain. But, the same data can have a drastic impact on transportation planners and agencies around the globe. While this example may still be a few years off, it is important that you understand how the top emerging trends in automation will shape supply chains and transportation processes in the coming years.

The Standard Definition & Components of Automation

Today: There is a standard definition of automation in the supply chain. Anything that can be handled via today’s computer systems can be automated. This includes billing, generation of bills of lading, compliance reports, and even movements throughout a factory or warehouse floor.

Historically, automation has been applied to virtual processes, like order auditing or customer service reports. However, the trends in automation are changing to reflect actions that function more like artificial intelligence, not just a search and locate program on the computer.

Additive Manufacturing

What is it?

Additive manufacturing includes all actions in the supply chain that can enhance existing factory production, if not replace it entirely. Additive manufacturing may be handled manually, but automating this process is as simple as turning on the power and connecting to the Internet of Things (IoT).

For example, additive manufacturing might involve the use of 3-D printers to create replacement parts at the store for consumers.

Today’s status: Unfortunately, the capacity of 3-D printers remains in infancy, capable of only producing simplified parts out of liquid polymers.

Virtual Reality Comes to the Forefront.

Meanwhile, Google Glass and other virtual reality tech are changing how customers complete their orders. In addition, the same technology can be overlaid with augmented reality to give repair technicians and individuals greater resource access when making repairs, checking order contents and fulfilling orders.

For example, augmented reality glasses will soon detect package dimensions and classify the package according to dimensional pricing models.

Today’s Status: Today, this technology is limited to automated identification and data capture (AIDC) applications. Advancements in virtual reality over the past year indicate its future might be much closer than “meets the eye.”

Additive manufacturing will gradually move products from warehouses and distribution centers to be closer to end-users. As a result, the amount of last-mile traffic may increase.

Robotics Enhance Inbound and Outbound Logistics for Shippers.

Another trend in automation involves robotics. By definition, robotics are the icons of automation. They perform functions at the request of a system or person, but more of today’s robotic systems are performing duties upon request from an order fulfillment system.

The order process automatically notifies robots in warehouses and triggers the flow of processes as seen in the opening example.

Robotics Improve Inbound and Outbound Logistics.

Robotics are not isolated to warehouse pulling for outbound logistics. They can be used to manage inbound and outbound processes and strategy. Through trends in automation and robotics, supply chain companies will have the tools and resources necessary to ramp up throughput and decrease product cycle from order to delivery. Therefore, more trucks and drivers will be needed, but the looming driver shortage and capacity crunch will trigger another automation trend.

Autonomous Vehicles/ Trucks

Automation begets automation. With advances in technology and the IoT, most major companies, including Uber, Facebook, Google, and Amazon, have launched autonomous vehicle and truck pilot programs.

These driverless vehicle programs will give supply chains access to a new inexhaustible resource for moving products, overcoming the challenges inherent in the driver shortage and capacity crunch.

The driver shortage and capacity crunch are likely to come to a head in 2017, as consumers demand more product, at lower costs and faster than ever before.

Some setbacks have occurred, like the first self-driving car wreck earlier this year. With each setback and challenge, companies have pushed back to overcome the obstacles.

In response to increased interest in driverless vehicles and trucks, the National Transportation Safety Board (NTSB) has issued recommendations and created an advisory panel to review ongoing driverless vehicle advancements and maintain public safety.

Transporters and supply chains will respond to this direction by leveraging the trends in automation and power of data to ensure compliance with increased government oversight, through the agencies you represent.

Companies have already tested cross-country driverless trucks, albeit with a person ready in the cab to take over in the event of a system failure. However, the wide-scale deployment of this level of driverless trucks is far from implementation.

In the interim, more automated vehicle systems will work in tandem with drivers to enhance safety and maintain vehicle control. Similar systems are already deployed in crash and pedestrian detection systems, automated braking and tracking control in today’s vehicles. It is not difficult to apply today’s technology and automated features to the fleets and drivers of 2017.

Trends in Automation: Whats the Potential?

The potential applications of this type of technology can include real-time traffic condition monitoring and warnings, redirecting traffic before pile-ups and accidents occur, similar to Google Maps’ capacity to show traffic congestion in real-time.

Data through such systems can automatically feed back into transportation planners’ systems to automatically change signal phase and timing and enable immediate rerouting or adjustment of traffic flow on a broader scale.

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5 Takeaways from the Industrial Product Buyers Survey

5 Takeaways from the Industrial Product Buyers Survey

Industrial product buyers are changing how, why, and where they buy. Are you prepared to accommodate their preferences?

Distribution has always been an industry built on relationships. The loyal customer favored companies where they developed strong working relationships with a sales representative.

But recently distributors have felt a shift in the tide. Buyers have grown impatient with one-on-one sales relationships and quickly embraced the convenience of buying directly from manufacturers, for one. Distributors are left scrambling to keep up with such trends.

So how do distributors stay ahead of the game?

UPS recently conducted a study of the behaviors, preferences and perceptions of industrial product buyers. It found four major market forces driving change: customer demands, direct-from-manufacturer purchasing, e-commerce, and millennials. Additionally, the study offered up a few interesting takeaways we thought were worth highlighting.

5 trends in industrial product buying

1) Purchasing drivers

The study asked for the top five factors that are most important when purchasing industrial supplies from buyers’ preferred distributor size. Though “best prices” was a top contributing factor across the board, as you can imagine, other answers varied from small distributors to large.

For those purchasing from smaller distributors, 58% of customers ranked personalized service as most important. Among those preferring large distributors, 61% of buyers wanted a wide selection of products.

Takeaway: There is a strategic opportunity for mid-size distributors to cater to both types of buyers. Mid-size distributors focusing on larger selection with personalized service can offer customers the best of both worlds.

2) Friends stick with friends

Word of mouth is still the top tool buyers use to research a new distributor. Studies have shown that consumers trust recommendations from people they know more than any other form of advertising, and the same is true for distribution. Personal references and word of mouth are heavily influencing buyer trends.

Takeaway: Distributors need to have their ears to the ground and really focus on what buyers are saying. If the word on the street is that your company needs to make changes, make them. You want to consumers raving about your company, so others will follow suit. Also, consider the value of review sites.

3) Internet is king

The importance of the internet is old news. But UPS’s study found a substantial jump in buyers’ going online to purchase industrial supplies. In 2013, 57% of buyers were hitting the web, and that number grew a significant 9% in just four years.

Takeaway: Suppliers need to make sure that their websites are a one-stop shop for customers. Buyers need to be able to find answers about products, confirm product details, and access their negotiated prices all online. Spending the time and money to update your website is key to giving buyers a preferred way to make purchases.

4) User-friendly everything

Along with wanting to make purchases online, industrial product buyers want the ease and convenience of user-friendly websites. 72% of buyers said they would shift their spending to a different distributor with a more user-friendly website, and that number increases to 85% with buyers age 21-30. These findings confirm the shift from relationship-based buying to the experience-driven trend.

Takeaway: Brand loyalty is no longer based solely based on product quality and personable sales staff. Distributors need to take into account convenience, speed, and a good customer experience. What appeals to customers is the ease of their online service. Staying ahead of trends will involve constant maintenance of your website and its usability.

5) Cross-channel consistency

Industrial product buyers may be making most of their purchases online, but they are definitely checking in with friends and social media before making any decisions. Oftentimes websites don’t provide enough information, and, by default, they rely on other channels to confirm details before making purchases.

Don’t let users find conflicting messages from different resources. Cross-channel consistency will give your company an edge on the competition.

Takeaway: Make sure that your off-site and onsite messages are clear across all channels. Examining the buyer experience on and offline — and making sure that all channels are communicating the same message — can elevate your company’s position among your competitors.

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10 Must-Read Supply Chain Articles by Up-and-Coming Talent

10 Must-Read Supply Chain Articles by Up-and-Coming Talent

Our series by MBA students and graduates at Peter T. Paul College of Business and Economics highlights some of the most pressing issues in supply chain management today.

A few years ago, the Wall Street Journal called supply chain management the “hot new MBA.” Many universities have been introducing related degree programs, majors, and concentrations in response to a growing demand for new hires with supply chain expertise. Graduates of these programs are heavily recruited by employers, which is helping to attract ambitious, young talent to the industry.

Fronetics had the opportunity to collaborate with some of these rising stars by inviting MBA students from the University of New Hampshire Peter T. Paul College of Business and Economics to author guest posts on our blog. They covered a variety of pertinent topics, from the Internet of Things and Big Data to pet food and Chipotle. Their pieces are summarized below.

In the coming weeks, we’ll be partnering with another MBA class at UNH to author a second series of posts covering some of the most pressing issues in supply chain management today. Make sure you receive our blog e-newsletter (sign up to the right) or follow us on social media so that you don’t miss out.

Internet of Things and Its Impact on Supply Chain Management

Steve Mondazzi writes about how the Internet of Things is now being used to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues. Everything from turning lights on and off to security systems can be controlled from your smartphone, and that technology is moving to the manufacturing industry. Mondazzi examines Mark Morely’s theory that the IoT will impact the industry in three main ways: pervasive visibility, proactive replenishment, and predictive maintenance. He also explores hurdles to implementation — such middleware and a common protocol for businesses regarding IoT. Read article

Pet Food Industry Supply Chain Challenge

Mikayla Cadoret focuses on the barriers to entry in the pet food industry. New brands have three options: manufacture product themselves, choose a co-packer who uses a private label, or choose a co-packer who will manufacture the food to the specifications of the brand. She discusses the challenges of those choices as well as high-profiles recalls resulting from co-packer error. She recommends strategies that companies implement to keep tabs on co-packers’ sourcing and manufacturing. Read article

Is Amazon Ever Going to Stop Surprising Us?

Nicole Brooks explores Amazon’s mission to be earth’s most consumer-centric company. The e-commerce giant not only offers low prices, it also exceeds consumer expectations and shifts industry standards with benefits like same-day shipping. Brooks examines Amazon’s biggest technological assets, and looks forward to up-and-coming innovations like Kiva robots in warehouses, drones, Prime Air, and Amazon Business. Read article

Surprise! We All Use Six Sigma

Corey Ducharme discusses the traditional four-step problem-solving method and how it isn’t effective in solving needle-in-a-haystack issues resulting from limited business resources. Six sigma can address these issue with its six-step process. With the addition of an analysis phase, solutions become more effective, leading to better results and higher revenue for businesses. Read article

RFID and Its Effect on Supply Chain Management

David Chadwick explores whether advances in radio-frequency-identification technology (RFID) will render humans obsolete in the supply chain. RFID could dramatically improve efficiency and accuracy in warehouses by reducing the need for human interaction. But it is uncertain to what degree this technology will be implemented in all aspects of supply chain management. Read article

The Business Continuity Plan and Supply Chain Resilience

Dario Cavegn discusses how increasing size and complexity of global supply chains open them up to increased risk. Supply chain disruptions can vary from insignificant to extremely threatening. But regardless of disruption size, supply chains can remain resilient with a business continuity plan, which acts as a road map to continue operations during or after a disruption. Cavegn outlines the development process from analysis to feedback. Read article

With Big Data Comes Big Responsibility

Josh Hutchins explores the limitations of big data. The real value lies in the analytics applied to the data. As an example, Solid Gold Bomb drove its prospering t-shirt business into the ground from an oversight and misapplication of data. Hutchins concludes that companies must have an intimate understanding of big data applications to avoid a similar fate. Read article

Is 3PL Right for Your Company? 4 Questions to Ask Yourself

Michael Hickey discusses third-party logistics providers as a resource for a company’s operations arm. 3PLs offer an outsourcing opportunity for order fulfillment, inventory and warehouse management, as well as transportation of finished goods. But businesses should ask themselves these questions when determining whether a 3PL is a good fit for their needs. Read article

The Chipotle Carnitas Crisis: PR Dream or Provision Disaster?

Sarah Hebert discusses Chipotle’s high-profile pork-supplier conundrum. The chain cut their pork supply by a third due to a supplier’s violation of their animal welfare standards. While this affected sales by 7-8%, Chipotle embraced the situation as a strategic PR opportunity. But behind the scenes, the company was scrambling to address long-term supply concerns associated with its rapid growth. Hebert asks, “At what point do you scale back the growth for the sake of maintaining brand integrity?” Read article

The GM Recall and the Supplier Relationship

Connor Harrison discusses GM’s recall of 2.6 million vehicles. The company’s faulty ignition switches were linked to 13 deaths and 31 front-end collisions, but the company managed to contain the crisis. Harrison examines the root causes of the issue, including faulty ignition switches from GM’s supplier Delphi, a strained business relationship, and legal complications. Read article

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Packaging Trends to Watch in 2017

Packaging Trends to Watch in 2017

Will sustainability trends from the consumer packaging industry have an impact on electronics manufacturing this year?

As we wrap up the first big consumer holiday of 2017, it’s interesting to think about how innovation in packaging never stops. While many of the newest ideas are hitting consumer applications first, perhaps they will point to new directions for electronics manufacturing as well.

Packaging trends suggest a wide range of startups, researchers, and big companies are committed to finding solutions that match the buzzwords du jour — sustainable, bio-degradable, natural, and eco-friendly.

Here are some sustainability trends in packaging that I think will gain momentum in 2017.

2017 packaging trends to watch

1) Multiple uses

Great packaging protects not only your product, but also your brand. But what if the packaging is part of the product itself?

That is the case with innovations such as the expandable bowl by Swedish design studio Tomorrow Machine. Using 100% bio-based and biodegradable materials, the company created a cellulose wrapper that hugs freeze-dried food and morphs into a bowl when hot water is poured into the spout. The bowl ― a sustainable packaging award winner ― is now in good company, and I expect more will follow.

2) Unconventional materials

Egg shells, fermented sugars, barley, and wheat ribbons — those were the materials used to create, in turn:

  • Bio-compostable films: Nano-particles from waste eggshells helped researchers at Tuskegee University in Alabama make a plastic film that is completely sustainable and 700% more flexible than other bio-plastic blends. Film made of the new material could be used in retail packaging, grocery bags and food containers.
  • A prototype PHBottle: The European PHBottle project aims to initially create a bottle, cap, and sleeve, although use in other applications (non-food packaging and non-packaging uses) will be tested. The bio-plastic material used to make the bottle comes from the transformation of organic matter found in juice processing by-products.
  • Edible six-pack rings for beer: Imagine washing down the six-pack ring with your favorite beer. Although that moment is not quite here yet, the future is looking up for a piece of plastic that is notorious for ensnaring wildlife. The first bio-degradable edible six-pack ring for beer is the result of a partnership between Saltwater Brewery; We Believers, an advertising agency; and Entelequia, Inc., a small startup in Mexico. Made from barley and wheat ribbons spent grain from the brewing process, the rings are safe for wildlife to eat and sturdy enough to support the cans.

3) Reusable packaging

The throw-away culture is not for everyone. In fact, Mintel’s Global Packaging Trends 2017 shows 63% of U.S. consumers actively seek out packages they can re-use. More than half of consumers also say they would prefer to buy foods with minimal or even no packaging. With such great demand for waste reduction, innovation is bound to pick up even more momentum.

What do you think 2017 will bring in terms of sustainable packaging for the electronics industry? Let us know about promising innovations you’ve seen.

This post originally appeared on EBN Online.

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