The partnership to autonomy
Ford revealed plans to invest $1 billion over the next 5 years in the artificial intelligence company, Argo AI. The idea is to develop a virtual driver system that will be used for Ford’s autonomous vehicle, slated to arrive in 2021. If the system is successful, it could lead to the possibility of licensing the system to other companies in the future. Experienced robotics professionals and engineers within the two companies will work together on creating an optimal machine-learning software, which will act as the autonomous vehicles’ brain. The combination of a start-up and industry leading automaker will help this partnership develop quickly due to its competitive advantage over individual companies such as Uber. Ford believes the partnership will also have a direct impact upon its shareholders; through strengthening Ford’s leadership in the autonomous market, it will increase its value.
The company wants to be at the forefront of the autonomous industry and enable the commercialization of self-driving cars to be available to everyone. Further developments could improve the movement of goods as well as people, with the opportunity to use the software to benefit package delivery fleets. Once established, the technology could be licensed to players within the logistics market who want to expand or establish their own autonomous capabilities.
Read more on Ford’s investment here.
Changing the supply chain
Adidas is refocusing its supply chain. Its new initiative, introduced in Russia, has significantly increased sales in Moscow. Through incorporating existing technology, which was formally used only within the manufacturing industry, Adidas’s supply chain tactics in Russia are now focusing on increasing sales and not reducing costs.
After a very successful trial implementation of its click and collect service, Adidas soon realized it had to halt the experiment to build the necessary supply chain infrastructure to cope with such a high demand. Another initiative included a ship from store method. Instead of using distribution centers, it would utilize its stock in stores throughout Russia. These methods reduced delivery times and increased sales by getting the product to the customer faster. When the initiatives were analyzed, they showed a reduction in returned goods and therefore cost reductions in logistics. The new outlook sees the supply chain as a sales driver and not a cost driver.
Find out more information on Adidas’s supply chain here.
This week, Deutsche Post DHL (DPDHL) reached a bilateral cooperation agreement with the Chinese telecoms equipment manufacturer Huawei. The companies will work together to develop solutions within the supply chain industry for customers of DPDHL, particularly for those using Industrial Internet of Things (IIoT) hardware and infrastructure. It will create greater efficiency, safety and customer service through the optimization of their supply chains. It will also create more value through the offering of low-cost devices. The aim of the partnership is to deliver an improved integrated logistics value chain for DPDHL’s customers.
The partnership will allow DPDHL access to all of Huawei’s IoT devices, as well as its network infrastructure. DPDHL will also benefit from Huawei’s expertise, helping to add to its automation capabilities in its warehousing, freight and last-mile delivery operations. The agreement will profit both companies, aiding them with the skills to deal with the growing complexities of supply chains. Furthermore, the two companies will work together in order to market their results and begin pilot programs throughout Europe and China.
More information on the partnership can be found here.
Have a great weekend!
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