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Supply Chain Weekly Wrap-Up 03/17/2023-03/23/2023

Date:

IBM and Canada to Unveil Chips Pact

Canada and International Business Machines (IBM), look to seal an agreement to strengthen semiconductor cooperation on today. This will take place during US President Joe Biden’s visit to country’s capital, Ottawa. The memorandum of understanding (MoU) will seek to capitalize on the US push for semiconductor investment with its CHIPS Act.

Tech giant and fortune 500 company, IBM already operates a large facility for testing and packaging semiconductors in Bromont, Quebec which is less than an hour north of the US border. The agreement will lay out a plan to further build out the microchip ecosystem in the region, particularly when it comes to workforce development. It will also pledge to look at increasing Canada’s role in the semiconductor supply chain and integrating it with US manufacturing. Industry Minister François-Philippe Champagne has been meeting with IBM and other companies in the sector to push for more investment.

Talks have been held between America, Canada and Mexico to map out semiconductor supply chain and opportunities across the continent, and to organize a trilateral forum this year with industry leaders and representatives from each government. With these countries already being a part of the North American Free Trade Agreement (NAFTA). This agreement will look to shift the semiconductor monopoly held in Asia and towards North America.

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Maersk tests autonomous robotic solution

Shipping giant Maersk is working to elevate warehouse services through technological advancements. With the help of robotics maker BionicHIVE, Maersk looks to tests their fully automated, autonomous robotic solution SqUID, the system combines the intelligence and flexibility of humans with the power and efficiency of robots.

Maersk and BionicHIVE are four months into the trial run using Bionic’s SqUID solution at its Mira Loma, California facility. The pilot is expected to run for an additional four months. SqUID will aid in easing warehouse operations. It can move around warehouse floors and climb racks to sort, pick and replenish cartons from any spot on the rack. The software also integrates into warehouse management systems, providing real-time inventory data.

Erez Agmoni the Global Head of Innovation for Logistics and Services at Maersk said “By integrating BionicHIVE’s SqUID solution into our warehouse operations, we will be able to optimize processes and better serve our customers in a rapidly evolving market.” If the trial run is deemed successful, adopting the robot into Maersk supply chain does not prove to be a challenge. As solution is said to be scalable with little changes needing to be made to existing warehouses. The robot provides flexibility to handle any box from any location and deliver it anywhere with no height limitations. This was stated by BionicHIVE CEO and Founder Liran Raizer.

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Amazon launches 2-hour same day delivery with Rite Aid

Amazon is set to provide two-hour delivery from the drugstore chain, Rite Aid. The deliveries will only be possible at select ZIP codes in Newark, New Jersey, and Burbank, California. The addition of Rite Aid is a sizable one to the roster of chain stores Amazon offers quick delivery from. This service is offered exclusively to their Amazon Prime members. Rite Aid has more than 2,200 stores across 17 states, giving Amazon the potential scalability to offer Prime members across the country access to two-hour delivery.

Improving their last-mile delivery efficiency will hopefully boost Amazons sales and add more people to their Prime monthly subscription service. Focusing on improving their delivery framework is another example of Amazon acting as a pure Pickup and Delivery service for third party shipper. This gets them a step closer to being a direct competitor to UPS and FedEx.

Amazon’s quick-delivery services aren’t limited to two-hour windows. The company last year launched same-day delivery for Prime members ordering from retailers such as PacSun and GNC in certain markets. Constant improvements in their supply chain will only lead to more expansion which seems to be the goal for Amazon. A spokesperson for the company backs this up by saying. “We’re consistently looking for ways to offer more choice, flexibility, and value for Prime members, so we look forward to expanding our two-hour delivery window offering to more Rite Aid locations in the future.”

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