Cold Chain Tech Glows

Ember LifeSciences and the U.S. Anti-Doping Agency (USADA) have partnered to enhance the efficiency of blood-sample shipping processes for upcoming sporting events, including the 2024 U.S. Olympic Team Trials.

Ember LifeSciences’ cold chain technology focuses on self-contained, self-monitoring shipping systems for items such as temperature-sensitive pharmaceuticals, vaccines, and lab specimens. The Ember Cube (photo above) provides a fully integrated solution to common and costly challenges in cold chain shipping. Its design addresses issues related to tracking and temperature-sensitive deliveries, ensuring secure transport and preserved efficacy of medicine and specimens.

The USADA used the Ember Cube at several sporting events in 2023, including the Boston and New York Marathons and the Ironman World Championship in Kailua-Kona, Hawaii.

Through these events, hundreds of blood samples from elite athletes were transported in Ember Cubes to drug testing labs across the United States. Leveraging Ember’s cloud-based dashboard, USADA was able to monitor the real-time location, ambient temperature, and payload temperature of the Cubes during transit, ensuring that the blood samples maintained optimal temperatures and chain of custody was retained throughout the journey.

Beyond addressing shipment delays, the Ember Cube presented USADA with a cost-effective, integrated shipping solution given its reusability and advanced features, including self-refrigeration capabilities to store collected blood samples before and during transport. The Cube’s integrated temperature monitoring also eliminated the need for a standalone temperature logger, enhancing the overall efficiency, simplicity, and reliability of the process.

6 Healthcare Supply Chain Trends to Monitor

It will take next-level healthcare supply chain management to deliver next-level healthcare, according to DHL’s latest whitepaper, Delivering Next-Level Healthcare, which identifies these six key trends driving healthcare logistics.

1. Patient-centric healthcare. Today’s personalized treatments require closer links between pharmaceutical manufacturers and patients. And patients now expect the same choice and convenience in healthcare as in the commercial marketplace, driving growth in the consumer healthcare segment.

2. Advanced therapies. New approaches supplant simpler, more generalized medicines. For example, complex cell and gene therapies are developed in small batches that require tightly controlled two-way supply chains. Biopharma products need to be handled carefully at every stage in the supply chain, prompting robust investments in cold chain logistics.

3. Digital healthcare. The pandemic fueled an explosion in remote healthcare, including “decentralized clinical trials” where shipments of urgent, sensitive, and temperature-controlled medications replace the movement of patients. This results in more complex healthcare supply chain management, with sophisticated sensor and asset-tracking technologies for cross-system visibility and auto-replenishment. It also has applications for blockchain technologies to guard against counterfeiting and data theft.

4. New ecosystems. The urgency with which the COVID-19 vaccines were developed and distributed reset expectations, not just for the pharmaceutical industry but for logistics as well. Accelerated timelines have led some large healthcare providers to turn to outsourced logistics providers to handle the critical flows of medicines and devices throughout the supply chain.

5. Sustainable solutions. Carbon-neutral warehousing, alternative fuels, closed-loop returnable packaging and container systems, and optimized inventory and delivery models can ensure high levels of availability while minimizing waste and helping the industry meet its emissions goals.

6. Resilience. The pandemic and its after effects brought unprecedented stress to global healthcare supply chains. The desire to avoid future disruptions has led to a “great supply chain rethink,” including more localized supply chains for essential healthcare products and insourcing of critical pharmaceuticals, active ingredients, and medical supplies.

RFID: Hospitals Tag Along

The global RFID market is experiencing significant growth and is projected to reach $40.9 billion by 2032, up from $15.8 billion in 2023, according to Markets and Markets research. Applying RFID technology to healthcare is expected to grow at the second-highest rate during the forecast period, the research finds.

Patient monitoring within hospitals presents ample opportunities to integrate RFID solutions. These technologies offer a means to track and accurately identify patients, which enhances safety protocols. By leveraging RFID-enabled patient monitoring solutions, hospitals can optimize patient flow and throughput, streamlining routing workflows while reducing medication errors.

These systems also facilitate the monitoring of patient movement history and activity levels, ensuring comprehensive room-level patient visibility. Additionally, RFID technology can detect instances of patients falling from beds or wheelchairs. Real-time monitoring capabilities afforded by RFID solutions offer a proactive approach to preventing such incidents.

“The demand for temperature-controlled shipments, especially for vaccines, is on a steady rise. This trend, coupled with the fact that most healthcare-related items also require temperature control, could potentially lead to a squeeze in the availability of services. It’s crucial to anticipate these challenges and ensure we are prepared to meet the growing demand.”

—Joel Pinsky,
President,
Customized Logistics and
Delivery Association and
CEO and CFO,
Global Messenger and Logistics

At-Home Tests Not Going Away

Over the past few years, in large part due to COVID-19, healthcare providers have become more comfortable with patients self-administering tests and reporting the outcomes. As a result, the market now offers more intelligent, technology-forward devices for general consumers proactively taking charge of their own healthcare.

As healthcare and medical device companies continue to navigate this booming market, they’re also running into a host of issues: regulatory compliance, risk mitigation, quality assurance, logistics and distribution, inventory management, and typical global supply chain disruptions.

In the life sciences space, regulatory compliance is critical to guaranteeing that at-home testing kits and medical devices safely get to consumers. Companies are subject to strict mandates imposed by health authorities across the globe.

The challenges that at-home testing kits and medical devices face in supply chains aren’t going away, and are likely to get only more nuanced. It’s vital that providers work with partners that have experience in medical device logistics to help mitigate risk and successfully navigate this rapidly evolving market.

– John Marrow, President, RRD Supply Chain Solutions

Top Supply Chain Challenges for Dangerous Goods

Dangerous goods professionals highlight the need to reduce process complexity, establish effective staff recruitment and retention programs, and enhance digitalization to facilitate the safe and compliant transport of dangerous goods (DG) and hazardous materials, according to the 2023 Global Dangerous Goods Confidence Outlook survey, sponsored by Labelmaster, the International Air Transport Association (IATA) and Hazardous Cargo Bulletin.

Among the survey’s key findings and recommendations:

DG professionals are confident about the industry’s level of infrastructure and investment. 85% of respondents say that their infrastructure is on par or ahead of the industry and 92% increased or kept their DG investment the same year-over-year. While 56% believe their current infrastructure meets existing needs, only 28% responded that it meets both current and future needs.

Process complexity, mis-declared DGs, and attracting qualified staff remain challenging. 72% of respondents need more support to address future DG compliance. Views of the labor market are mixed; 40% indicate that current challenges will persist, 32% expect the labor market to improve and 28% say that it will become more difficult to find qualified staff. 56% say they expect the mis-declaration of DGs to stay the same or worsen.

Sustainability remains a focus across the industry. 73% of DG professionals report that their organizations have sustainability initiatives in place or planned. However, 27% do not have any sustainability initiatives planned, indicating room for improvement.

HazMat To-Do List

Hazardous materials shippers have a lot of moving pieces to manage. Of all the shipper responsibilities, properly classifying a hazardous material is most critical because all the other requirements are based on that proper identification.

According to the Federal Motor Carrier Safety Administration, hazmat shippers are responsible for:

• Determining whether a material meets the definition of a “hazardous material”
• Proper shipping name
• Class/division
• Identification number
• Hazard warning label, packaging, marking, placarding
• Employee training
• Shipping papers
• Emergency response information and phone number
• Certification
• Compatibility
• Blocking and bracing
• Security plan
• Incident reporting

6 Questions to Ask a HazMat Carrier

Ensuring the safe and compliant transportation of hazardous materials requires careful planning and due diligence. Choosing the right carrier is crucial, and asking the right questions can help you mitigate risks and ensure smooth transit for your hazmat shipment.

Before assigning a load, ask your prospective carrier:

1. Are you properly licensed and insured for transporting my specific hazardous material? Different hazmat classes have specific requirements for carrier licenses and insurance coverage. Verify the carrier holds the necessary permits and has insurance limits that meet your risk tolerance and regulatory requirements.

2. Do you have experience transporting this specific type of hazardous material? Experience matters. Ask about the carrier’s track record with similar hazmat shipments. Inquire about their safety protocols, training programs, and any incidents they have encountered.

3. Can you provide detailed information on your equipment and personnel qualifications? Ensure the carrier’s vehicles are properly equipped for your hazmat shipment, including placards, safety equipment, and emergency response measures. Verify the driver’s hazmat endorsements and training certifications match the specific requirements for your load.

4. What is your emergency response plan in case of an accident or incident? Accidents can happen. Ask about the carrier’s established emergency response procedures and their communication channels. Learn who to contact in case of an incident, and ensure their plan aligns with your own.

5. Can you provide references from previous customers who shipped similar hazmat materials? References offer valuable insights into the carrier’s reliability and performance. Contacting previous clients who shipped similar hazmat materials allows you to verify the carrier’s claims firsthand.

6. What is your process for ensuring regulatory compliance throughout the transportation process? Understanding the carrier’s approach to regulatory compliance demonstrates their commitment to safety and adherence to industry standards.

Expanding U.S. Chemicals Manufacturing

To increase domestic manufacturing of military-grade chemicals, the U.S. Department of Defense will award $192.5 million to seven companies under the Defense Production Act Investments (DPAI) Program.

The funding would establish, expand, and modernize U.S. manufacturing capacity for 22 critical chemicals in defense systems applications. The department expects the companies to reach a national capacity of chemicals by 2028.

The seven companies, which have proven that they can produce one or more of the military-grade chemicals, are CoorsTek, Goex/Estes Energistics, Lacamas Laboratories, Magrathea Metals, METSS Corp., Powdermet, and Synthio Chemicals.

Lacamas Laboratories received the largest contract at $86.2 million. The next two largest contracts were CoorsTek at $49.6 million and Magrathea Metals at $19.6 million.

The commercial sector can also apply these chemicals to various operations, including consumer products, pharmaceuticals, automotive components, energy, and agriculture. The funding adds to 10 awards and $289 million the DPAI Program has issued since the start of 2024.

Before Assigning a HazMat Load

• Request copies of the carrier’s insurance certificates and safety permits.
• Conduct a background check on the carrier’s safety record.
• Negotiate contractual terms that clearly define responsibilities and liabilities.
• Maintain open communication with the carrier throughout the transportation process.

Hazmat shipments account for 12% of all freight tonnage shipped within the United States. That equates to roughly 3.3 billion tons of hazardous materials shipped every year, worth an estimated $1.9 trillion.

Top 5 Aerospace Supply Chain Disruptions

Aerospace is one of the top five industries impacted by supply chain disruptions, according to EventWatchAI, Resilinc’s global event monitoring platform, which collects information and monitors news on 400 different types of disruptions across 104 million global sources.

Here’s a look at what Resilinc identifies as the biggest challenges facing the aerospace industry.

#1 Factory fires. Fires and explosions at warehouses, factories, and plants, as well as investigations and force majeure due to fires, are the top disruption in aerospace and have been the leading supply chain disruption across all industries tracked by Resilinc for five consecutive years. Simple safety measures—such as stocking extinguishers and training employees—can reduce the potential risk of factory fires.

#2 Labor disruptions. In 2023, the aerospace industry saw approximately 887 labor disruptions—a 66% jump from the year prior—which include company, site, union, and national strikes as well as layoffs, labor walkouts, protests, and more. Labor disruptions were a particular problem across all forms of global transportation as well.

#3 Mergers & acquisitions. While M&As can positively affect the industry, leading to improved technologies and more resilient companies, it takes time to merge data, suppliers, and systems, which can cause challenges.

#4 Business sale. 2023 saw more than 800 business sale disruptions in aerospace. Business sales include the sale of factories and plants, the sale of assets and subsidiaries, and brand/portfolio sales. Similar to M&As, business sales can increase supply chain resilience as companies acquire new technology and expand portfolios. However, business sales can also create increased security threats and delays while assets and information change hands.

#5 Factory disruptions. Factory disruptions include accidents, closures, and temporary shutdowns at warehouses, plants, and factories. There can be many reasons for factory closures—including industry growth. Even the most minor delays and shutdowns can cause significant issues across the supply chain.

Flying High

The 10 largest aerospace companies in the world:

• Boeing, US
• Airbus, France
• United Technology, US
• Lockheed Martin, US
• Northrop Grumman, US
• GE Aviation, US
• Raytheon, US
• Rolls-Royce, UK
• Leonardo, Italy
• Safran, France

Loose Ends

After United Airlines and Alaska Airlines discovered loose parts on multiple Boeing 737 MAX 9 aircraft, grounding 171 planes, industry experts raised new concerns about how the aircraft is manufactured.

The Federal Aviation Administration completed inspections of 40 grounded planes and says it will “thoroughly review the data” to determine if it is safe to allow the planes to resume flying.

Complexity Clouds A&D

The aerospace & defense (A&D) industry is facing unique challenges created by geopolitical conflicts, sustainability regulation and expectations, and shifting demand, finds Deloitte’s 2024 A&D Outlook report.

Key takeaways for supply chains include:

The A&D supply chain remains complex. The A&D supply chain is a complex, globalized ecosystem of customers and original equipment manufacturers; multiple tiers of suppliers; and maintenance, repair, and overhaul providers. This complexity makes implementing diversification and transparency across the value chain extremely difficult, but imperative.

By maintaining strategic raw material reserves, committing to bulk buying of long lead time items, exploring alternate sources of supply, and digitizing operations, A&D companies may position themselves well to handle any continued fragility across the entire supply chain.

Digital transformation will make a difference. Digital transformation in the A&D industry is largely impacted by regulations, priorities, and resources—but those who are prepared to adopt digitalization and advanced technologies such as Generative AI could gain a competitive advantage.

Sustainability matters. The industry faces evolving consumer demands for enhanced technology, greater sustainability, reduced emissions, higher performance systems, and lower costs, which may all factor into decision-making on supply chain processes.

5 Sustainability Trends Driving Change in Aerospace

The aerospace industry should keep an eye on five sustainability trends, according to Bryan Christiansen, founder and CEO of Limble CMMS.

#1: Advanced aircraft design. Aircraft manufacturers can improve performance by making slight improvements to aircraft. They can enhance engine designs for improved fuel efficiency, improve aerodynamic designs, explore the use of lightweight fabrication material, and use advanced coatings.

#2: Use of sustainable aviation fuels. The utilization of sustainable air fuels (SAFs) is taking shape as airlines strive to achieve net-zero emissions. These fuels have similar chemical characteristics to fossil fuels but with fewer ozone depletion capabilities; they release carbon that has already been extracted from the environment. Emissions from SAFs have a shorter life cycle, which further reduces their ozone depletion rates.

#3: Urban air mobility. Two technologies—electric vertical takeoff and landing (eVTOL) aircraft and drone deliveries—are front runners in the urban air mobility sector. Although at an infancy stage, eVTOLs promise to revolutionize air travel for short and medium-distance flights. Companies are using drones for last-mile deliveries across cities, with their payload capacities increasing over time.

#4: Advanced propulsion technology. Modern and future aircraft will not rely only on fossil-powered engines. The push for sustainable flights is revolutionizing the design of aircraft and spacecraft propulsion systems.

#5: Optimize air travel management. Airlines can minimize their carbon footprints by digitizing air travel management and leveraging advanced technology to improve route planning and asset maintenance and enhance operational efficiency.

The Write Stuff

Sales figures for high-end writing instruments are higher than they have been for 10 years, according to a recent report released by Selfridges, London’s luxury department store.

Research backs it up: A study by The Insight Partner finds the market for exclusive writing instruments is growing by an average of 5% per year and is expected to grow by another 40% by 2028.

If you’re ready to trade in your Flair, Waldmann has launched two fountain pen editions that enclose original writings by Agatha Christie (38 pens) and Arthur Conan Doyle (23 pens). Both editions were developed in cooperation with luxury brand Sekrè, a company that specializes in integrating original artifacts into luxury goods. The price of the fountain pens in each edition is $21,000.

Gold Gets Green

Jewelry supply chains have long been plagued by environmental and socioeconomic challenges and many brands are now addressing these issues.

For example, luxury jeweler Mejuri has partnered with Regeneration, a new remining initiative from RESOLVE that works to simultaneously mitigate environmental harm caused by past mining, support biodiversity and habitat rehabilitation of mine sites, and support the production of fine jewelry and energy-transition technologies using recaptured “waste” materials from mines.

Regeneration—a restoration and remining startup social enterprise—arose in response to the legacy of damage created by past mining for fine metals and jewels. When left untreated, “legacy” or formerly active mines, as well as abandoned mines, can pollute sensitive watersheds and damage ecosystems and native species. Mejuri will dedicate $1.5 million to support the ecological restoration of legacy mines through remining.

This initiative follows a circular model: First, Regeneration and its partners will extract valuable minerals from the tailings— byproduct materials left over once minerals have been extracted—as well as waste rock and water. While these are typically treated as waste, tailings can contain significant minerals and metals that can be used to create jewelry responsibly and sustainably.

Earnings from sales of those materials will then go back to the mining sites to fund habitat restoration and closure activities, including at legacy and abandoned mine sites. Eventually Mejuri will sell jewelry made from Regeneration gold.

Psycho Bunny Hops to Visibility Solution

Luxury brands are not immune from supply chain challenges. Consider Psycho Bunny, a luxury clothing brand known for its playful and colorful designs and high-quality products. The company’s fragmented systems did not provide real-time inventory visibility, resulting in stockouts and lost sales, added costs, and shipping delays.

Psycho Bunny searched for a solution to unify inventory management and streamline order fulfillment while offering a positive omnichannel experience to their customers. The brand needed a system that would enable ship-from-store functionality and fulfill orders directly from their 60+ store locations without inventory complications or delays.

The search led Psycho Bunny to Deposco’s store inventory fulfillment solution, Bright Store. Deposco implemented Bright Store across 60+ stores in six months. With the brand’s first store live in three months, Psycho Bunny was shipping more than 62,000 orders while reducing processing time for orders sourced from its distribution center from 2 to 5 days to less than 48 hours out of the stores.

The software gives Psycho Bunny real-time visibility into inventory across all of their stores, with room to grow seamlessly. The ship-from-store functionality creates a scalable process for fulfilling orders directly from Psycho Bunny’s store locations with reduced order fulfillment time, increased customer satisfaction and loyalty, and brand growth through a unified omnichannel experience.

U.S. Sits in the Lap of Luxury

Here are the top 10 luxury items in the United States (in no particular order):

1. Cars
2. Designer handbags
3. Fine jewelry
4. Watches
5. Private jets
6. Yachts
7. Homes
8. Designer clothing
9. Fine art
10. Vacations

Fake It Til They Take It

“The largest-ever seizure of counterfeit goods in U.S. history” went down in November 2023 when federal prosecutors seized more than 200,000 counterfeit handbags, clothes, and other luxury items worth $1.03 billion.

Two men, who were both arrested, used a Manhattan storage facility as a distribution center for massive amounts of knock-off designer goods. They also trafficked through a second offsite location also in Manhattan.

“The counterfeit market is a significant problem not just for luxury fashion brands and the dilution of their trademarks’ values, but also for consumers and society at large as many counterfeit products are produced in oppressive labor environments and without any adherence to ecological production methods (if implemented by brands),” says Douglas Hand, fashion lawyer and partner at Hand Baldachin & Associates.

Moving Some Money Around

Choosing the specific mode for transporting high-value items depends on the item being shipped, the distance it needs to travel, and the shipper’s budget.

The top transportation modes for moving high-value luxury items:

• Armored trucks are typically equipped with bulletproof glass, security cameras, and alarms to deter theft.
• Secure courier services use a variety of security measures, such as tamper-evident packaging, GPS tracking, and armed escorts, to protect the goods in transit.
• Air freight is the fastest transportation mode, making it ideal for transporting high-value items that need to arrive quickly. However, it is also the most expensive mode.
• Hand carry may be the only option for the most valuable items, such as priceless jewelry or rare artifacts. This involves a trusted courier personally transporting the item to its destination.

4 Tips to Transition to an EV Fleet

By: Jeff Wood, Senior Vice President, Operations, Wesco

Supply chain professionals face several daunting challenges as they prepare to electrify their transportation fleet—from production delays to the development of charging hardware, vehicle load capacity considerations, vehicle range limits, and implementation of charging infrastructure.

As fleet managers look to navigate these challenges, here are four practical tips to support a seamless transition to electric vehicles.

1. Consolidate all operational data. Before starting out, make sure you have a full understanding of your fleet’s operational data. How much do you spend per month on fuel and maintenance? How many vehicles are nearing the end of their lifecycle? How many miles do your vehicles travel in a typical shift, and how many stops do they make? What kinds of jobs are they performing? Having all this data in one place tells a comprehensive story to isolate where and when EVs are the best option for your business and your customers.

2. Analyze sustainability goals and budget. How many vehicles will be cycled out annually and how much will this cost? What role will the total cost of ownership play? While EVs are generally more expensive, reduced spending on fuel and maintenance over time can outweigh the higher initial purchase cost. There are also tax credits or other government incentives on many EV models that could factor into budgeting decisions.

At the same time, analyze your company’s sustainability goals to determine how much of an impact this will make toward achieving those goals—and if the associated costs of doing so warrants the budget required to get there. It’s also important to factor in how new laws, such as California’s carbon emissions reporting legislation, might factor into the decisionmaking process.

3. Keep communication lines open among key stakeholders during the transition period. There is always a learning curve when an organization decides to implement EVs. It’s important to involve key stakeholders throughout the process to get buy-in and understand how operations may be impacted. Once deployed, fleet managers should keep in close contact with drivers, maintenance, and operations to understand how EVs are performing relative to initial goals.

4. Consider strategic partners to execute the transition process. Many fleet managers may not have the in-house resources to effectively manage the initial transition to EV fleets, especially if that requires adding charging infrastructure. External partners can provide value by helping fleet managers understand the full scope of the project, as well as any other needs that they may not have considered.

50,000+

Number of Tesla superchargers worldwide

15 minutes

Time it takes to recharge up to 200 miles

Need a Cab? Look Up

In October 2023, Boeing’s electric flying taxi company, Wisk Aero, became the first air taxi company to hold public electric vertical takeoff and landing (eVTOL) demonstration flights at the Long Beach Airport.

The demo, using Wisk’s 5th gen eVTOL, allowed the company to run an autonomous flight alongside other passenger airlines in a complex, real-life situation.

ABCs of EV Batteries

Electric vehicle (EV) batteries power electric cars the same way gas powers internal combustion engined cars. Electric vehicles get all their power directly from a pack of batteries, typically placed under the floor in the center of the vehicle. Rather than a single battery, EV batteries use a pack comprised of thousands of individual Li-ion cells that work together.

Unlike batteries in most vehicles, which are primarily used to run accessories or start the engine, EV batteries run everything. They need to be powerful and long-lasting enough to take drivers to their destination while keeping the need to recharge to a minimum.

How do EV batteries work? When a truck or car is charging, electrical energy is routed to the battery system, resulting in chemical changes inside the battery pack that effectively store that energy for subsequent use.

While someone drives an EV, however, these chemical changes are reversed in order to release an electrical current to power the motors in the EV’s wheels. When a driver steps on the accelerator, the EV immediately feeds power to the motors, which gradually consume the power in the batteries.

How are EV batteries made? EV batteries are made using a combination of base metals and rare earth elements such as lithium, manganese, nickel, cobalt, aluminum, iron, and other elements including carbon or graphite. These elements are combined with electrolytes to produce an electric current that each cell of the battery systems generates.

Battery cells are wired together to generate the necessary voltage and amperage to power the vehicle’s motors and generate motion.

Approximately 80% of the components are recyclable, so when batteries reach the end of their lifecycle, they can be stripped down and their parts can be reused.

Transport Companies Charge Ahead

Transportation and logistics companies continue to incorporate electric trucks into their fleets for several reasons: to reduce their environmental impact and meet increasing customer demand for sustainable transportation, and reduce fuel and maintenance costs.

Among the leading transportation companies to implement electric trucks are:

• Amazon has partnered with Rivian to develop and deploy electric delivery vans. The company has already begun to take delivery of these vans and plans to have 100,000 electric vans in its fleet by 2030.
• FedEx has partnered with BrightDrop, a subsidiary of General Motors, to develop and deploy electric delivery vans. The company has already taken delivery of 150 BrightDrop Zevo 600 vans and plans to have 2,500 electric vans in its fleet by 2025.
• UPS has partnered with Arrival to develop and deploy electric delivery vans. The company has already placed an order for 10,000 Arrival vans and plans to have 25,000 electric vans in its fleet by 2025.
• BrightDrop is a subsidiary of General Motors that is developing and deploying electric delivery vans and trucks. The company has already partnered with FedEx and Walmart to deploy its vehicles.
• DHL has partnered with a number of companies to develop and deploy electric trucks and vans. The company has already deployed thousands of electric vehicles and plans to have 80,000 electric vehicles in its fleet by 2030.

Straight from the Source

Manufacturers can source renewable products in a number of ways. Here are a few ideas to get started:

• Work with suppliers who are committed to sustainability. Many suppliers now offer renewable products, and some even specialize in them. Look for suppliers who have a good reputation for sustainability and who can provide documentation to support their claims.
• Consider the product’s full life cycle. When choosing a renewable product, consider the full life cycle of the product—from the extraction of the raw materials to the disposal of the product at the end of its life. This includes factors such as the energy used to produce and transport the product, the water used in the production process, and the waste generated.
• Look for products that are certified by third-party organizations. A number of third-party organizations certify renewable products using specific standards that products must meet. Look for products that are certified by organizations such as the Forest Stewardship Council, the Sustainable Agriculture Network, and the Rainforest Alliance.
• Be transparent with your customers. Let your customers know that you are using renewable materials in your products. This can help build trust and differentiate your products from your competitors.

Can Sustainability Save the Day?

Raw material shortages are becoming a dire challenge for supply chains due to overconsumption and increasingly extreme weather—especially as the planet recently experienced the warmest months on record. Capterra’s latest survey of small and mid-size (SMB) manufacturers reveals the impact of resource scarcity and how these businesses are leveling up sustainability strategies in response.

• Most manufacturers fear raw material shortages in 2024: 80% of survey respondents are moderately to severely concerned about the availability of raw materials needed over the next year. Plastics, fossil fuels, and plant-based shortages are among their top concerns.
• Manufacturers concerned about water embrace more sustainability strategies: 71% of SMB manufacturers are moderately to severely concerned about the long-term availability of water for their operations. Those with high concerns over future water availability are about twice as likely to set additional sustainability goals compared to the businesses with mild to no concerns.
• Sustainable packaging is a popular practice for reducing environmental impact, costs, and risk of material shortages (see chart): 63% of SMB manufacturers currently use right-size shipping materials and 55% currently use recyclable packaging.

As businesses navigate the challenges of increasingly disruptive environmental realities, those that prioritize sustainability will find themselves better positioned to thrive, according to the survey.

Recycling Facts and Figures

• About 80% of what Americans throw away is recyclable, yet the recycling rate is only 28%.
• Recycling 1 ton (about 2,000 pounds) of paper saves 17 trees, two barrels of oil (enough to run the average car for 1,260 miles), 4,100 kilowatts of energy (enough power for the average home for 6 months), 3.2 cubic yards of landfill space, and 60 pounds of pollution.
• Americans use 2.5 million plastic bottles every hour; most of them are thrown away. It takes about 500 years for the average-sized plastic water bottle to decompose and about 1,000 years for plastic grocery sacks to degrade.
• Recycling plastic saves twice as much energy as burning it in an incinerator.
• The energy saved from recycling one glass bottle can run a 100-watt light bulb for 4 hours or a compact fluorescent bulb for 20 hours. It also causes 20% less air pollution and 50% less water pollution than when a new bottle is made from raw materials.
• Mining and transporting raw materials for glass produces about 385 pounds of waste for every ton of glass that is made. If recycled glass is substituted for half of the raw materials, the waste is cut by more than 80%.
• About 11 million tons of textiles end up in U.S. landfills each year—an average of about 70 pounds per person.

SOURCES: Environmental Protection Agency, DoSomething.org, Missouri Recycling Association, Earth 911.

Top 10 Renewable Materials

The following materials are considered renewable because they can be replenished at a rate that is equal to or greater than their rate of consumption. They are also sustainable because they can be produced and used in a way that minimizes environmental impact.

1. Wood
2. Bamboo
3. Cotton
4. Hemp
5. Wool
6. Cork
7. Recycled paper
8. Recycled plastic
9. Reclaimed metals
10. Mycelium

It’s all in the Jeans

One bale of cotton—approximately 480 pounds of cleaned cotton lint—can make more than 200 pairs of jeans or 1,200 t-shirts.

Getting Bamboozled

Bamboo is widely used as a replacement for conventional materials, including wood for furniture, hardwood for flooring and decking, and plastic in everyday items, such as toothbrushes and medicinal products. Bamboo fiber is also used to replace cotton and synthetic fabrics.

The cost to cultivate bamboo is low, and the time required for bamboo to grow to its full potential is also shorter than other hardwoods.

The global bamboo market size was estimated at $59.3 billion in 2021 and is expected to expand at a compound annual growth rate of 4.5% from 2022 to 2030, according to Grandview Research.

Growing investments in infrastructure development and rising consumer awareness about sustainable, durable, and eco-friendly products will drive the growth of the global bamboo industry.

Trick, No Treat

As Halloween approaches, candy companies face a global shortage of a key ingredient: sugar. Even when candy producers can locate enough raw materials to meet production demands, they must contend with high prices.

Factors exacerbating the sugar shortage include:

• Transportation issues. Supply chain disruptions have led to logjams at ports, lack of carrier availability, and other challenges that delay sugar deliveries to candy companies.
• Trade restrictions. Agricultural policy requires candy companies to purchase at least 85% of sugar from domestic suppliers, creating a major hurdle during the current shortage. Additional restrictions, such as sanctions imposed against Russia–a major sugar producer–have worsened the shortage’s impact.
• Climate change. Climate change and associated extreme weather events such as heat waves can shorten growing seasons, reduce crop yield, and limit sugar availability.
• Crop failures. Many domestic and international producers faced significant crop failures over the past year. Some experts also point to El Niño as a cause for the decline in sugar production.

Chocolate-Covered Compliance

Many food companies are applying advanced supply chain technology to improve the quality compliance of shipments before they arrive at stores or distribution centers.

One of the world’s largest chocolatiers, for example, saw its cold chain compliance grow from 59% to more than 85% after implementing Roambee’s AI-powered supply chain intelligence platform.

The system analyzes real-time conditions both inside and outside reefer containers across various lanes throughout the year. Among 93 lanes, Roambee’s AI utilized sensor input—including location, temperature, humidity, and more—to identify the top 20 lanes responsible for more than 60% of temperature and humidity breaches.

By prioritizing investment on premium transport models for these 20 lanes instead of all, the chocolate company saved millions of dollars.

By using firsthand sensor-driven signals, the chocolate company was able to deliver 26 million pounds of candy annually without compromising quality, detect anomalies in its supply chain operations, and better forecast cold chain compliance by lane, by transport partner and by season.

Sweet Success

The top 5 largest candy brands in the United States by revenue:

1. Hershey Company
$10.4 billion — 2022 annual sales

2. Kit Kat
$2.1 billion — 2022 annual sales

3. Reese’s Peanut Butter Cups
$2 billion — 2022 annual sales

4. M&Ms
$912 million — 2022 annual sales

5. Twix
$297 million — 2022 annual sales

$42.6 billion: Current total confectionary market sales, boosted by inflation
$12.9 billion: Market size of the U.S. candy production industry as of 2022
$54.3 billion: Projected total confectionary sales by 2027

SOURCES: Euromonitor, Zippier

Lights, Camera, Chocolate

To offset major price hikes from manufacturers, AMC Entertainment Holdings plans to make its own candy and sell it in theaters.

“As a result of the pandemic and supply chain shortages, candy manufacturers had increased their price to us by a huge amount,” said Adam Aron, chairman and CEO of AMC, during an earnings call.

AMC says it can manufacture a private label of popular candy and sell it at a lower price than the current name brands the theater chain offers. Even at lower prices, AMC would still maintain a higher profit margin because the “cost to manufacture the private label brand is so much less than the normal brands,” Aron said.

The entertainment company expects to introduce its private label of popular candies in theaters later in 2023 or early 2024.

Sugar Rush

The average American consumes an estimated 8 pounds of candy per year, with children eating even more.

The sporting goods industry played a good game during the past two years, with growth equaling or outperforming pre-pandemic levels, but economic conditions could derail progress for some industry players, according to Sporting Goods 2023: The Need For Resilience In A World In Disarray, a study conducted by the World Federation of the Sporting Goods Industry and McKinsey.

The study identifies six actions that active lifestyle companies can take to tackle inflationary and other economic pressures:

1. Implement smart pricing and channel management. Data and analytics related to price elasticity and competitor offerings could inform flexible pricing strategies and revenue management to protect net margins and limit volatility.

2. Reset return on investment. Conduct a top-down review of efficiency by channel and SKU to invest for growth.

3. Strengthen brand communications. Optimize and refocus communications on the brand’s core value proposition to help boost revenue.

4. Build supply chain resilience. Review sourcing and supply chains and apply next-generation levers to the cost base.

5. Foster next-generation organization productivity. An agile approach and innovations, including robotic process automation, could lead to long-term savings. Review warehousing and transportation costs to increase productivity.

6. Optimize finance. Focus on freeing up cash and exploring divestments and acquisitions.

At Your Athleisure

The athleisure market (sneakers, leggings, T-shirts, hoodies, sweatshirts) is expected to grow from $4,18,690 million in 2022 to $8,33,199 million by 2030.

Athleisure’s market value has an annual growth rate of 8.1% worldwide.

The United States is the largest market for athleisure products. It accounts for about 30% of worldwide sales.

A growing interest in physical fitness among young people in the Asia-Pacific region and a cultural shift in apparel preferences has that region set to overtake the United States as the world’s largest athleisure buyer in a global market.

Athleisure is the largest product segment among young people worldwide. In some places, it accounts for more than 65% of the clothing purchased by people in their teens and 20s.

–Linchpinse

How the Lifestyle Industry Stays in Shape

Four key trends are shaping the active lifestyle industry in 2023, according to McKinsey:

1. Brand relevance will increase. Consumers who were once motivated first by factors such as functionality, design, and price, are now increasingly driven by brand. Notably, the industry’s high performers in terms of value creation are characterized by high levels of brand equity and loyalty.

Sporting goods companies need to build strong and trusted brands that leverage the direct-to-consumer revolution, collaborate with other brands, and engage in community marketing.

2. Sustainability. Brands, retailers, and manufacturers have made bold promises of a more sustainable future, but are they up to the challenge? With self-imposed deadlines on the horizon, it is time to deliver.

In an environment where both regulators and consumers are targeting greenwashing, companies should carefully consider how they deliver on their actions and ambitions.

3. Nearshoring. It is important that the nearshore country meets the requirements for raw materials and components and offers the right capabilities and capacity. A detailed business case should take into account a holistic set of variables to determine financial impact and feasibility, as well as potential government incentives.

4. Hot target for private investors. The sporting goods industry has grown strongly over recent years and is likely to continue on that path. In addition, the industry has proven to be more resilient in downturns, bouncing back faster than others.

Further, it comprises many smaller but well-differentiated brands that make attractive targets for consolidation or growth plays. These factors have fueled interest among private investors, with the number of annual deals doubling in the past decade.

On Your Mark, Get Set, Go Shopping

Although online retailing has remained a considerably stable distribution channel for the sales of sports equipment in the past, it is expected to gain more prominence in the future due to the associated convenience, finds a Mordor Intelligence report.

Specialty stores, however, hold the largest share in the current market scenario, the report notes.

The sports and leisure equipment market is projected to register a compound annual growth rate of 4.5% over the next five years. Increased online retailing, widely spreading distribution channels, and easy availability of sports equipment and necessary courses required for tournaments and other competitions are expected to boost market growth.

10 Best-Selling Sneakers of All Time

1. Nike Air Jordan 1
2. Converse Chuck Taylor All Stars
3. Nike Air Force 1
4. Air Jordan XI
5. Air Penny 2
6. Air Jordan XII
7. Nike Zoom Kobe IV
8. Reebok the Question
9. Converse Weapon
10. Nike Air Zoom Huarachie 2K4

Changing the Diaper Market

Despite supply chain disruptions, raw material shortages, and inflation, innovation is thriving in the baby diaper market and new brands continue to be born.

Although the United States is a mature market for diapers, a Euromonitor report still predicts modest growth for baby diapers over the next five years, driven by disposable pants. Most of the growth today is driven not by volume but by price because of inflation, says the report.

The supply chain has proven to be one of the most pressing challenges for young diaper brands. “The pandemic, raw material availability and fluctuating prices created a constant flux,” says Sergio Radovcic, CEO of Dyper.

“Brands such as Dyper that rely on specialized plant-based materials and unique raw materials are particularly challenged and have to exhibit high resilience to assure uninterrupted supply to consumers,” Radovcic says. “These and other challenges also present unique opportunities to innovate, which comes naturally to young brands rooted in challenging the status quo.”

–Nonwovens Industry

A Formula to Combat Shortages

In 2022, parents faced a nightmare when the pandemic and panic-buying, a large-scale voluntary infant formula recall, and the shutdown of a major manufacturing facility due to unsanitary conditions caused supply chain shortages of infant formula.

To avoid a repeat of that scenario, U.S. regulatory agencies are studying ways to improve the country’s baby formula supply chain.

As part of the Food and Drug Omnibus Reform Act of 2022, the U.S. Food and Drug Administration (FDA) released a report titled Immediate National Strategy to Increase the Resiliency of the U.S. Infant Formula Market.

The report outlines several ways to improve the infant formula supply chain:

• Advance strategies to prevent illness associated with cronobacter sakazakii in powdered infant formula.
• Collaborate with U.S. government partners to address tariffs and market concentration.
• Enhance FDA inspections at infant formula manufacturing plants and provide investigators with more thorough training.
• Make information about formulas easier to understand on the FDA website.
• Make sure formula manufacturing companies understand the need to create and execute backup plans to manage risks and prevent production disruptions in the supply chain.
• Monitor the availability of infant formula and create a prediction model that will help the FDA minimize future supply issues.
• Speed up reviews of applications for new baby formula products to help prevent or reduce shortages.
• Work with the USDA to ensure the Women, Infants and Children formula programs remain resilient.
• Work with health care providers and professionals to help educate consumers.

Turning Green

Parents shopping for baby essentials increasingly search for sustainable options, driving manufacturers and brands to examine some of their supply chain practices.

Some baby brands, for instance, are converting to packaging that uses biodegradable, compostable, or reusable materials. And, while it may be unavoidable for some items, brands are minimizing single-use plastic in the packaging and in the product itself.

When it comes to materials, parents gravitate toward bamboo and organic cotton for clothing, bedding, and for both cloth and disposable diapers. They also opt for stainless steel or glass bottles over plastic bottles, and sustainably sourced and natural wood for cribs and other furniture.

For baby skin care and bathing products, natural oils such as coconut, avocado, and calendula, as well as organic and plant-based ingredients such as chamomile, aloe, and shea butter, are on the sustainable shopping list.

Baby Bump

Looks like the baby supply chain will get busier this year. The U.S. birth rate continues to grow year by year, according to United Nations projections.

• The current U.S. birth rate in 2023 is 12.02 births per 1,000 people.
• The U.S. birth rate in 2022 was 12.01 births per 1,000 people.
• The U.S. birth rate in 2021 was 12 births per 1,000 people.
• The U.S. birth rate in 2020 was 11.9 births per 1,000 people.

—Macrotrends

Feeding Time

• $8.46 billion: Baby food revenue in the United States in 2023
• 3.5%: Expected annual growth in the baby food market (CAGR 2023-2028)
• China: Country that generates the most baby food revenue globally (US$17.8 billion in 2023).

– Statista

3 Tiers of the Wine Supply Chain

We can’t talk about wine without mentioning the Volstead Act, which made it illegal to “manufacture, sell, barter, transport, import, export, deliver, furnish, or possess” such beverages. Prohibition wasn’t just a temporary blip in alcohol manufacturing; it changed the way the supply chain functions.

Prior to Prohibition, the manufacture, sale, and transportation of beverages with an alcohol content greater than 1.28% looked different than it does today. Producers often owned their own retail outlets and served their local communities.

Today, alcohol—including wine—is highly regulated in the United States. After the repeal of Prohibition, the wine and spirits industry fractured into a three-tier system:

Tier 1: Producers. The first tier includes grape growers, wineries, manufacturers, suppliers, and importers.

Tier 2: Distributors. The second tier could be considered the middle man. These are the wholesalers. They purchase wine from the producers and then sell and deliver it to retailers.

Tier 3: Retailers. The third tier refers to not just stores but also restaurants.

–Thomasnet

6 Beer Trends Are Brewing

The beer brewing industry faces another year of uncertainty and evolving customer tastes. These six trends will guide the industry throughout 2023, according to SevenFifty Daily.

1. Consumers seek value in bulk beer and higher alcohol levels. As consumers try to get the most bang for their buck, they are buying beer in bulk or shopping for higher-alcohol-percentage products.

2. Breweries will trim SKUs and focus on specific styles. Increasing competition for shelf placements in grocery and liquor stores will lead breweries to eliminate slow-moving brands and rally around core beers. Focusing on fewer beers can help breweries better weather the vagaries of ingredient availability.

3. Breweries reclaim carbon dioxide in the face of supply chain disruptions. The carbon dioxide shortage caused a boost in innovation as brewers looked for ways to solve gas supply availability and reduce dependence on delivery. Breweries are also turning to a traditional technique called spunding, which traps carbon dioxide in tanks during fermentation, to naturally carbonate beers.

4. Global crises spur more local beers. The ongoing war between Ukraine and Russia—which together export more than one-quarter of the world’s wheat—and a terrible harvest for European hops will lead breweries to look closer to home for raw materials.

5. Beer merch and variety beer packs offer sales opportunities. The pandemic caused a spike in online shopping, and the digital shift will continue to lead breweries to emphasize online sales for merchandise and, where legally permitted, beer. Variety packs are also fostering aftermarket interactivity.

6. Taprooms become attractive interactive hubs. People now seek compelling places to gather that meet the needs of all ages. A bland taproom that offers only cold beer won’t cut it.

10 Largest Global Spirits Companies

(Based on current market capitalization)

1.  LVMH Moët Hennessy Louis Vuitton. Paris, France
2.  Kweichow Moutai. Maotai, China
3.  Jiangsu Yanghe Brewery. Suqian, China
4.  Anheuser-Busch. Leuven, Belgium
5.  Diageo North America. London, England
6.  Wuliangye Yibin Co. Ltd. Yibin, China
7.  Altria. Richmond, Virginia
8.  Pernod Ricard USA. Paris, France
9.  Constellation Brands. Victor, New York
10. Brown-Forman. Louisville, Kentucky

SOURCE: Zippia

The Hard Stuff

The hard seltzer market continues to grow at an unprecedented pace and is expected to reach $76.9 billion by 2033. Additional key takeaways on the market from a Future Market Insights report:

• The hard seltzer market is particularly appealing to millennials and Gen Z consumers, who prioritize low-calorie and light beverages.
• The hard seltzer market is segmented based on alcohol content, with 5% to 6.9% ABV (alcohol by volume) hard seltzers generating the most revenue, accounting for 52% of market share in 2022. However, the sales of 1% to 4.9% ABV hard seltzers are projected to increase at a compound annual growth rate of around 24% between 2023 and 2032 due to the growing awareness of health concerns and the trend toward moderation, particularly in the United States.
• The bottle segment is expected to record a compound annual growth rate of 3.4% due to low processing costs and easy handling. Glass bottles are a popular option because they can be reused and recycled and they are durable.
• The off-trade distribution channel is the leading segment, generating 71%+ of global hard seltzer market sales in 2022. The segment’s growth was due to factors such as the well-established infrastructure of hypermarkets, supermarkets, convenience stores, and wine and spirit shops.
• The on-trade distribution channel segment is projected to expand at a rate of more than 23.5% from 2022 to 2030, fueled by bars, clubs, hotels, and lounges.

Sip on This

$1,609 billion: 2023 revenue in the alcoholic drinks market

Beer: The market’s largest segment at $610 billion in 2023

China: Country that generates the most revenue from alcoholic drinks

6.6% of total revenue: will be generated through online alcohol sales in 2023

42% of spending 25% of volume consumption: In the alcoholic drinks market will be attributable to out-of-home consumption–in bars and restaurants–by 2027

9.7 gallons: Average alcoholic drinks volume per person in 2023

– Statista