Transcript
Scott Lewton (0:04)
Welcome to Supply Chain now, the voice of global supply chain. Supply Chain now focuses on the best in the business for our worldwide audience. The people, the technologies, the best practices and today's critical issues, the challenges and opportunities. Stay tuned to hear from those making global business happen right here on Supply Chain now. Hey, good morning, good afternoon, good evening wherever you may be. Scott Lewton here with you on Supply Chain Now. Welcome to today's Live stream. Hey, on today's show, as most of you all know, it's the Supply Chain Buzz, which comes at you every Monday at 12 noon Eastern Time. That's by, by my calculation, I believe at 6pm Central European Time. But y' all know, my math, my conversion skills are, are missing here. But a big thanks behind the scenes, Catherine and Amanda, thanks for helping to make production happen here and welcome, everybody. We've got a ton of folks already here. We're going to say hello to each of y' all in just a few minutes today for the on the Buzz. As y' all have come to expect, we're going to be discussing a variety of news developments, really across global business. And we've got a special guest here today. And trust me, when y' all when I tell you that you're really going to get a kick out of our guest, I promise you. We just had a very engaging pre show with Leila Taha Ripit, senior vice president of Supply chain with First Watch, which as y' all may know, very popular daytime dining restaurant, almost 500 locations in 29 states here in the U.S. so stay tuned as we'll be gaining her insights. Now, some of y' all may know this about me, but I'm really particularly very interested because as, as Layla and Catherine, a few others in the pre show pointed out, you know, we, we've covered global supply chain, a number of different sectors, but really, Layla is one of our first, what I'll call executive practitioners, joining us from the restaurant or the daytime dining industry, I should probably put it. And for me, having worked in the food industry throughout college and then some and then for a couple of years after I graduated, I'm really looking forward to learning from Layla and her expertise and her experience. So, but hey, we also want to hear from you. Give us your take in the comments throughout the show. Let us know what you're thinking. And for those of you that may be listening to the podcast Replay, you ought to consider joining us live on LinkedIn or YouTube or some other social media channel of your choosing as we go live every Monday at 12 noon Eastern Time. We'd love to hear from you. Now, some of y' all may notice I'm by myself today. Watch out. Usually I'm joined by the one and only Greg White, but he's traveling today, and we'll be back in the saddle with us next week. Okay, we're going to get into a few resources. We're going to get into a few stories. We're going to walk through here today. And. But before. Before I do, before I get some shout outs, really important as we want to send our thoughts, our love, and our prayers all those impacted by Tropical Storm Hillary. As reports have come in, more and more on the damage in Mexico and California. So please stay safe, and we wish a very speedy recovery. All right, so let's say, man, we got a packed house. What is it with August 21st? And they are chomping at the bit. Let's see here. We have got Muhammad tuned in via LinkedIn. Let us know where you're tuned in from. Shabir. Josh back with us from gorgeous and smoky Seattle. He says 60 degrees up in Seattle. Great to see you here, Josh, Derek from Dallas, y' all, trademark that tuned in from Dallas. It's gonna be around 106 degrees. I think you're gonna get the prize, Derek. Goodness gracious. Let's see. I think Josh is saying boom goes at the temperature gauge there. Retnech is back with us via LinkedIn. Retina. Let us know where you're tuned in from. Rodrigue via LinkedIn as well. Audrey, Arthur from Morgantown, Pennsylvania. Love your show, Arthur. I really appreciate that. We all appreciate that. We love getting feedback from our audience wherever they may be. So really appreciate that. Angela is back with us from North Carolina via LinkedIn. Uh, and of course, we couldn't do a buzz without JP John Peterson tuned in from Marietta, Georgia. Great to see you, John. And we're gonna hit everybody else here in just a moment, but I want to do this. I want to start with some resources. Right? It's really important, as y' all know, the commitment from the supply chain. Now, team, hey, we've got your back. As you're fighting through the trenches to make things happen for your customers, you know, and. And for your teams. We want to share some. Some resources that may help you in that endeavor. And. And I'm going to start with. With that said over the weekend, who in. Who in the world is that? Who let that guy up on a stage talking about chocolate Kit Kats from Cape Town? Yes. So y' all check out so every weekend we release our. With that said, and it's really meant to be a. A newsletter that's not just a. A replay of all the other content and podcasts, live streams, really try to offer up a unique take. And what we talked about this past weekend was our experience that Amanda and I had when we spent some time at the Safe Picks conference in Cape Town. And we were. Our kids had asked for a bunch of different treats. Right. Well, as we were at the Woolworths filling up a bag of treats which would. Later, we'd have a fun time getting through customs in with. But this Kit Kat stood out. And I noticed on this KitKat there in Cape Town that Nestle was promoting that it was a hundred percent. It was made with a hundred percent sustainable cocoa and that there's a whole rest of the story there. But check out. You have to read with that said, but really it's cool to see Nestle commit that by 2025, just less than two years away, all of their global supply of cocoa that they use is going to be 100% sustainably sourced. So how cool is that? Check out the link. I think we've got that here. So you're one click away from checking that out. And make sure you subscribe so you don't miss our. With that said, each and every weekend. All right, so from KitKat to Music man, lots of our favorite things this morning here. Catherine and Amanda. We've got a live stream coming up. This. Let's see. This is. This would be Wednesday, August 23rd, my birthday. Hey, I love talking supply chain on my birthday. Hey, we're gonna be. We're gonna be featuring Matt Spooner with Kinaxis. And check out this title quote. Music to our ears. The power of supply chain orchestration. I love that. Right. Well, we're gonna be talking about what that means and how that definition has continued to evolve and some of the cool things Matt's been up to on one hand, as he just got back from a European cycling race. I can't remember the name of that race. Catherine, let's drop that in the link maybe. And some of the cool things that Kinaxis is up to that will all benefit from learning. So y' all check that out. I gotta catch up on a couple comments here. Yes, Arthur, give me a break. Give me a break. I'm not sure if Anyone remembers that KitKat commercial from the 90s, but that was. That was certainly imprinted in between my ears. Greg, join us again. And from Wisconsin, great to see you Here, Greg. Simon, hello, Supply chain enthusiasts. I think that's a great title. Great looking at it, Simon. Hello to wherever you are dialed in from. Let us know. Rightness. Just tuned in from India. That's right. I remember that. T squared says bring on those dog days of summer nourishment. It's going to be 93 degrees where T squared is. And I want to say he's up in the Maryland area, correct me, T squared, but he says it feels like 107. It just feels hot, really hot. And big show. Bob Bova is with us. He says a little wet and windblown, but that's okay. Up in the mountains and high desert got the worst of it as well. An earthquake on top of things is crazy. And that's right, Bob, you're out in California, so hope you and your family and all your colleagues are doing okay. All right. We have got one more resource before we hit our first news story that I want to share and that would be this. We're having this conversation, y' all. Check out this graphic. We were having this conversation with our friends, Dan Reeve. Never not Reeves as in the hall of Fame coach and football player Dan Reeve from Esker. Right. We had Dan join us and he brought along once again, Dr. Morgan Swink from Texas Christian University. Now, they have collaborated on some interesting research focused on managing working capital. And we're going to drop a link so y' all can check out that, get your own copy in the comments. But one item that stood out to me that was included was, check this out. This global supply chain pressure index. I bet this resonates with a bunch of y' all. Right. I really think it's interesting to see this pressure mapped out on a chart. It's just the latest reminder and we've had millions of them of our workforce and how they're under. We're all under a ton of pressure and strain to perform. And as one of the constant mantras that we really, we don't just preach, but we act on around here at supply chain now is we got to make it as easy as we can to help them succeed. Right? So y' all check that out. Also check out this report I mentioned the managing working capital returning to a strategic, strategic end to end approach. Really some interesting factoids from industry driven by the data that you'll want to check out in that research piece. Okay, let's see here. I want to make sure we've got, we've got links. I mentioned that live stream. We're one click away. If you want to check that out. That way you can sign up for that session this coming week. T Squared Baltimore. That's right. So I'm assuming T squared with Lamar Jackson that he successfully negotiated his contract extension. Maybe he's got a he's going to teach the rest of us how to do stuff like that. I bet the Ravens are in for a big NFL season coming up. Salmon tuned in from Dubai, man, big things happening in Dubai. Salmon, our great friend Kim, Kim Winner is usually tuned in from Dubai. It's amazing what's going on there. All right, so with all of that said, I want to get into our first story here today, and we're going to be talking about the Panama Canal. Now, some of y' all may be familiar with what's going on down in the Panama Canal. This comes to us via our friends over at the Wall Street Journal. Got a traffic jam building up on both sides of the Panama Canal. Now all of our listeners probably remember how for a long stretch there, we were tracking backed up port traffic across the US on both coasts. If y' all remember Greg, who spends a good chunk of his time on the island or Hilton Head as he'll call it, he was even calculating his own index as he watched ships sitting and waiting back then down near Savannah. I want to say we got up into the dozens of ships there. Savannah backed up and waiting. Not nearly like the traffic on the West Coast. Well, all that traffic congestion has shifted south. Now get this. According to the Wall street journal, more than 200 ships are waiting on either side of the Panama Canal to transit. The primary culprit, you ask? Well, it's an extraordinary drought condition impacting really the whole region. Now did you know, as shared by this article, the Panama Canal uses three times as much water as New York City every single day. Now that adds a little helpful context. And when the rainfall is low, well, the first thing to be cut are the number of transits that the canal allows. So if you do elect to try to get your ship through there and transit during these times, well, you're going to be paying a very hefty fee. Now, for the most part, container ships aren't nearly as packed in as impacted as as others because they're booked far in advance. Right. But more short notice shippers like gas carriers, where they're running into all sorts of problems and expenses. The Panama Canal Authority, interestingly enough, has hired the US Army Corps of Engineers. Yes, the same group that built the canal back in the early 1900s. Well, they've, they've brought the corps of engineers in to look at possibly diverting four more rivers into the canal, which already currently taps only three rivers. All right, so that's just the first of. Let's see. I think we're knock out three stories here today. So check that out. We're going to keep our finger on the pulse of what's going on there in the Panama Canal. And our second story, from Panama to restaurant tables and home cabinets across the country, right from our friends over at cnbc, we're talking about a highly popular garlicky hot sauce that Americans just can't get enough of. That's right, Hoy Fong Foods. Sriracha hot sauce. I bet many of y' all love this stuff on your pasta, on your pho, on your sandwiches. You name it, many of you probably use it comes in that big iconic plastic bottle with the rooster and the green plastic cap, right? But for years, for three or four years now, it's been harder and harder to find. In fact, I saw bottles selling on Amazon for about 22 bucks this morning. Now, CNBC said it found the same going for as much as 52 bucks. So here I was scrounging and I've got got product here and bidding will begin at about $40. So as we'll see if we can even take us up. But yeah, Catherine, I know you love Sriracha. I know Amanda loves Sriracha. I love Sriracha on just about everything. But let's dive into what's going on here. So it's the problem mainly, there's two main reasons here. Number one, Huy Fong Foods evidently got into a dispute with its longtime supplier of jalapeno peppers, which is the primary ingredient. Right. For 28 years, Underwood Ranches supplied Hoi Fong Foods with peppers until a dispute hit around 2017, causing that relationship to cease. Now, that longtime supplier was cut out of the operation. And that's where the second problem comes into play. Replacing that steady stream of hot, delicious peppers. Well, that hasn't been as easy as Hoi Fong Foods must have thought. Since moving on from underwater ranches, the hot sauce maker has reportedly tried sourcing jalapenos from farms in California, New Mexico and Mexico. But drought and poor weather conditions has impacted these areas and its crops. Now we'll see how this story continues to develop. As Greg points out, the tropical storm Hillary. Well, that's not, that's going to have a big impact perhaps on these, these farm regions that we were just talk about. But on a personal note, anytime I see a bottle of this sriracha sauce. I think about where I first tasted it in a Vietnamese pho restaurant in Wichita, Kansas, of all places. I was in the Air Force at the time, and my buddies Highland Wong and Troy Boozer took me to this far place and I instantly fell in love with it. I mean, how couldn't you, as Catherine pointed out. So it was delicious then, it's still delicious now, and it goes with just about everything. So we're hoping that the supply rebounds. We'll see. Um, all right, share a couple of comments here. T squared. Can you smell the greed flation new term in this supply and demand, uncertainty notwithstanding? That's an interesting comment. You know, I haven't noticed if these bottles have gotten any smaller. I know. You know, we, we got some ice cream over the weekend for my kids and y' all know what's going on there. With shrink inflation, you're getting less than what you used to get. But greedflation new term, Josh says can't tell you how much ramen with some sriracha he's had. Essential for college diets everywhere. Excellent point. Excellent point. Going back to the Panama Canal, Will says the canal was turning away bigger ships due to lower water. That's a good point, Will. And additionally with the bigger container ships, what it's been having to do for years is take containers off of them and onto secondary ships so they can get the whole craft through the canal. Good point there, Will. And by the way, Will must be a big Chicago Bears fan. He says. Good things in store for my Chicago Bears this year, I bet. Will, I cannot remember the name of the quarterback that the Bears drafted that he played at Georgia and then he went on to play with the Buckeyes. But I think he is poised for a big year. All right, so we are going to. I got a couple other resources right. As we continue getting a little bit further in today's supply chain buzz. Stay tuned. We've got an excellent guest coming into the show in about three, 10 minutes or so, so stay tuned for that. But a couple things we invite you now. We talk about webinars and live streams and and so much more. Right. We don't want y' all to miss anything, so it's really easy to become a member of the NOW community. There's just a couple pieces of information that we ask you all to give us, and that way you'll be on the docket to get announcements and other opportunities to check out. We invite you to join us and become a part an engaged member of the NOW community. Speaking of resources, who raise your hand if you're struggling with the last mile. I think everybody is right. Well, check out this upcoming webinar. Speaking of resources, September 21, about a month away, where Freight and our friends from Estes and Bart from Everstream analytics, well, there we're, we're going to be talking about unlock, unlocking the power of diversification in last mile delivery. So join us for that live session on the 21st. And get this, we're about to touch on a story from our friends at Walmart which we've really enjoyed interviewing executives through the years. We're partnering with Supply Pike. So if you do business with Walmart, y' all know how tricky that can be at times, right? Well, these folks have been there and done it and they're offering that expertise on three proven strategies to level up your business with Walmart. And I would just argue, putting things maybe too simply, that if you can be really successful in your business with Walmart, there's tons of transferable best practices to apply to all of your relationships with other organizations. So join us there. Dino and I host Stacy and Eric with Supply pike on September 26th at 12 noon. All right, one more story. This is an interesting, interesting story here now, folks. It's next to impossible to even have a conversation these days without mentioning AI, right? I mean, it's, it's, it's crazy from what I can tell. I really, I've really enjoyed the conversations where we're talking about real artificial intelligence, not the fake stuff that our friends in marketing may apply to whatever product they're pushing, but real artificial intelligence that's being applied to really going back to that pressure in our workforce, make it easier for them to be successful and allowing humans to do the extraordinary human things. So check out this story from our friends at CIO Dive. Walmart has targeted three primary areas with its artificial intelligence strategy. They are personalization for customers so that mass customers are mass personalization trend continues. Associate operations. I love that they're going to help their team and their associates make their days easier. And supply chain optimization. Walmart CEO Doug McMillion says that the retailer is already using AI to help estimating demand and in its planning to meet that demand. For example, they're using AI to run simulations on what customers do on Black Friday. And he says that AI further represents an opportunity for the company to be even more anticipatory. Say that word seven times fast. Anticipatory in its planning and identifying and predicting problems. Before they arise. Now, one issue that the Walmart team has identified and has been working on for years, clean and structured data. McMillan said, quote, We've been working for a few years now to try and get our data in better shape so that we can really put it to work, end quote. Now, can you imagine we're talking about this pre show. Can you imagine the sheer tidal waves of data that Walmart is working through? Man, if they have opportunities with data, what does that mean for, for all the rest of us out there? Outstanding, outstanding opportunities. And it sounds like a, to me, to my ears, at least a very practical approach for the successful and meaningful application of AI at Walmart. Okay folks, we are. You're in store. Oh, thank you, Justin Fields. Thank you Amanda and Catherine for pointing that out. That's my first error. So Justin Fields, going back to Will, you're a big Bears fan. We'll see what Justin does this year. I bet it's, I bet he's gonna have a big year. And also the other thing I couldn't think of, the Transcontinental race. Thank you, Katherine. Our friend Matt Spooner from Kanaxis has just finished completed this transcontinental race. Annual self supported ultra distant cycling race across Europe. The route distance varies for each edition between 3204 200km. Goodness gracious. I'd be doing something if I could just get out and do a 10 kilometer bike ride, right? All right, so stay tuned for that on August 23rd. All right folks, I have really enjoyed, you know, we get to spend a little bit of time pre show before each of these live sessions with our guests and really our team, co host, you name it, we, we had a ton of fun with our guest here today. And I am delighted to welcome in very special guests here on the supply chain. Buzz. Layla Taha Ripit is the senior vice president of supply chain with First Watch, a popular daytime dining restaurant with almost 500 locations in 29 states here in the U.S. so let's welcome in Layla.
