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This week we talk about future-proofing supply chains, the sale of ITA, and Inflation. Strap in!!

On to the neeeeeewwwsss!!!!!

Week's Top Stories 🗞️

Why the Global Supply Chain Could be Staring at a Dry Spell
The Supply chain and Future... Proofing?
The Sale of the Italian Airways
How CSCOs can Put a Pin in Inflation

Why the Global Supply Chain Could be Staring at a Dry Spell

Out of the frying pan and into the fire, it seems, perhaps quite literally in this case. The 20s’ have been an “interesting” time, to put it mildly, for the supply chain, and now a new obstacle is rearing its ugly head.

The newest source of trouble comes from China’s drought problem.

China is currently experiencing its worst heat in 60 years, leading to extreme rationing of hydroelectric power in favor of keeping residential areas habitable. With the power rationing, many manufacturers of key components such as agriculture, microchips, and automotive parts have had to suspend operations, leaving many companies scrambling to restructure supply chains.

Some analysts warn that global supply chains are “woefully” unprepared for the potential impact these droughts could have.

The Supply chain and Future... Proofing?

We’ve heard of childproof and foolproof, but the ability to protect from something that is, quite literally, in the future seems a bit absurd, especially when considering something as vast and as complicated as the supply chain.

However, technology has brought us to a new frontier, especially in the field of logistics and supply chain management. So while it seems like science fiction, future-proofing your supply chain has indeed become a science fact.

Fortunately, the process of future-proofing isn’t quite as difficult as one might expect. In fact, the process is rather straightforward through some small changes, as opposed to a radical overhauling of operations.

Click here to learn more about future-proofing.

The Sale of the Italian Airways

Offers are being made for Italy’s national airline, ITA Airways, much to the relief of the Italian Prime Minister, Mario Draghi. Italy’s government has tried and failed on multiple occasions to divest its numerous and flagging holdings.

Of the offers being made, the most impressive is the $853 million being posted by Mediterranean Shipping Co. (MSC) and the German airline Deutsche Lufthansa AG. If the offer is accepted, the partnership would assume control of 80% of the ITA and play an important role in creating a global leader for cargo and passenger transportation.

Learn more about the future of the ITA here.

How CSCOs can Put a Pin in Inflation

All around the world, inflation is slowly digging away at profit margins, operating expenses, and budgets, both private and commercial. Unfortunately, the most expedient cure for inflation tends to be a recession, which can have an even more significant and longer-lasting impact.

Fortunately, there are four major steps that Chief Supply Chain Officers can take now to ease the sting of inflation and mitigate their risk should a recession hit, according to Gartner Inc.,

These steps, in conjunction with those taken for future-proofing see 👆, could make for a rather resilient supply chain. But that’s just our opinion.

Learn about Gartner's recommendations here.

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