XPO and Nestlé to create 'digital warehouse of the future'
The companies ar...
Nestlé and XPO Logistics are to work together to create the ‘digital warehouse of the future’, which will be situated in the UK.
The companies are co-creating a 638,000-square-foot distribution center at the new SEGRO East Midlands Gateway Logistics Park in Leicestershire, UK.
The facility, a digital warehouse of the future, will be occupied predominantly by Nestlé for its consumer-packaged goods and will function as a testbed environment for XPO technology prototypes prior to global release.
Scheduled for completion in 2020, the custom-designed distribution centre will feature advanced sorting systems and robotics alongside state-of-the-art automation co-developed with Swisslog Logistics Automation.
Its digital ecosystem will integrate predictive data and intelligent machines to deliver one of the most advanced distribution management centers in the world, giving consumers faster, more efficient access to KITKAT, MAGGI, NESCAFÉ and other much-loved Nestlé brands.
Nestlé Director of Supply Chain David Hix, said: “We are thrilled to be working with XPO Logistics to build a flagship digital warehouse and technology laboratory at the East Midlands Gateway Logistics Park. This is a world-first investment for Nestlé that builds on a century and a half of proud history in this country.
“Our partnership with XPO will encourage innovation and experimentation in our UK logistics operations and help futureproof our business. We will be able to be even more responsive for our customers across our brands, which include some of the most recognizable in the world.”
Richard Cawston, Managing Director, Supply Chain, XPO Logistics Europe, said: “Nestlé has entrusted XPO with the digital architecture for its future vision. Together, we will create limitless opportunities to explore new technologies in a state-of-the-art logistics environment.
“The new East Midlands center will operate as both a think tank and a launch pad for XPO innovations, with far-reaching impacts on the way business is done. We look forward to an inventive collaboration with Nestlé.”
Andrew Bridgen, MP for North West Leicestershire, said: “This is excellent news for North West Leicestershire and the wider East Midlands economy. That two global giants – Nestlé and XPO – should choose to locate their new state-of-the-art, environmentally sustainable facility here shows that this region is a great place for businesses to invest. It’s very positive for the development of our local economy.”
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.