May 17, 2020

DHL report highlights need for business ‘ecosystems’

DHL supply chain
Business ecosystems
Business collective model
Business ecosystem
Jennifer Johnson
2 min
The report claims it is now necessary for companies to deploy and activate assets they neither own nor control.
DHL has today unveiled a report which states that future success for global companies will be determined by their ability to orchestrate ecosystems or...

DHL has today unveiled a report which states that future success for global companies will be determined by their ability to orchestrate ecosystems or ‘business collectives’.

The paper claims that, in an increasingly globalised world, companies must deploy and activate assets they don’t own or control by tapping into the capabilities of partners.

Companies which successfully apply this new ‘ecosystem’ or business collective model will collaborate to develop shared goals, and will be fully aligned to integrate these goals up and down the supply chain.

“Within the next five years, ecosystem models will thoroughly populate the business world,” said  Damian Pike, Vice President, Innovation & Transformation, DHL Supply Chain. “How they will look is unclear, as no two will be or should be the same: the business collective is not a one-size-fits-all approach. What we do know is they will be highly agile and designed to compete faster, better and cheaper than ever before.”

Conversely, the white paper argues that companies which persist in adopting an inside-out business approach, informed only by their own internal perceptions and capabilities, risk of being left behind by those that have adopted a forward-thinking approach.

The paper’s author, Lisa Harrington, said: “More and more, consumers will be brought into the fold as part of the business collective. By giving customers a more active role, businesses will increasingly harvest ‘tribe’ intelligence.”

Supply Chain Digital's July issue is now live. 

Follow @SupplyChainD on Twitter.

Share article

Jun 21, 2021

Elon Musk's Boring Co. planning wider tunnels for freight

2 min
Elon Musk’s tunnelling firm plans underground freight tunnels with shipping containers moved on “battery-powered freight carriers”, according to reports

Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports. 

A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers. 

Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US. 

The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two. 


Boring Co.'s new freight tunnels

The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.

The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete. 

Tesla’s supply chain woes 

Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue. 

Elon Musk Tweet

Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely

Top Image credit: The Boring Company / @boringcompany

Share article