Today's Logistics Report: Electrified Supply Chains; Suing Online Commerce; Cybersecurity for Suppliers
December 06 2019 - 10:57AM
Dow Jones News
By Paul Page
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The electrification of vehicles is triggering bigger changes in
automotive supply chains. General Motors Co. and South Korea's LG
Chem plan to jointly build a $2.3 billion battery-cell factory in
Ohio, the WSJ's Mike Colias reports, the latest example of how auto
makers are plowing big money into technology that is transforming
the sector. Consultancy AlixPartners LP says auto makers are
gearing up to spend $225 billion over the next few years to develop
new electric vehicles and are partnering with and investing in
battery makers to help provide the power. Volkswagen AG plans to
spend $1 billion on battery production, including a joint-venture
investment with a Swedish startup, and Tesla Inc. established its
massive Gigafactory battery plant in Nevada in partnership with
Japan's Panasonic Corp. The GM-LG battery factory will be built
near Lordstown, Ohio, where GM last spring shuttered a large
vehicle-assembly plant.
E-COMMERCE
Hoverboards' brief ride as a consumer toy of choice a few years
ago has left behind major legal liability questions for Amazon.com
Inc. and other e-commerce companies. The popularity of the
self-balancing scooters flamed out in a series of fires that hit
households in 2015 and 2016, causing some $2.3 million in property
damage and triggering at least 17 lawsuits against Amazon. Several
cases remain active, the WSJ's Alexandra Berzon writes, and they
are testing the longtime argument by modern technology companies
that they provide only the platform that connects buyers and
sellers and aren't responsible for ensuring safety standards. Those
questions hit the shipping industry as growing awareness of the
hoverboard transport hazards set off alarms for carriers and
regulators. The hoverboard cases have produced a trove of documents
that show the vulnerability in the vast scale and relatively
anonymous structure of Amazon's platform.
SUPPLY CHAIN STRATEGIES
Cybersecurity protection is taking on a more prominent role for
companies assessing their suppliers. Security professionals are
looking for more sophisticated tools to evaluate the risks that
providers present in the supply chain, the WSJ's James Rundle and
Catherine Stupp report, and are going beyond the general vendor
surveys that have long been a favored procurement due-diligence
tool. It's part of a broader effort to protect businesses from
hacking, ransomware and other threats that have emerged in the
digital era. Forrester Research Inc. analyst Alla Valente says the
first step should be creating a catalog of all suppliers and the
data they have access to. Assessing the security of suppliers is
more challenging since operators may have thousands of companies on
their list. Some experts say the best solution for companies with
long supplier lists may be using third-party certification to
assure the vendor has been closely vetted.
QUOTABLE
IN OTHER NEWS
U.S. imports of consumer goods declined 4.4% in October.
(WSJ)
Canadian exports rose 0.8% in October and imports advanced 0.5%.
(WSJ)
Germany's manufacturing orders fell unexpectedly from September
to October. (WSJ)
Beijing officials say China's trade negotiations with the U.S.
remain on track. (WSJ)
French cities were paralyzed by a massive public transport
strike against a planned overhaul of France's pensions system.
(WSJ)
Oscar Munoz is stepping down as chief executive of United
Airlines Holding Inc. and will be replaced by Scott Kirby.
(WSJ)
Kroger Co.'s quarterly profit fell 17% to $263 million despite a
2.5% gain in same-store sales. (WSJ)
Retailer Michaels Co. lowered its outlook after comparable store
sales fell 2.2% in the third quarter. (WSJ)
Quarterly same-store sales at Dollar General Corp. jumped 4.4%.
(WSJ)
Retailer Tractor Supply Co. named Hal Lawton, a former executive
at Macy's Inc., eBay Inc. and Home Depot Inc., as chief executive.
(WSJ)
A jury convicted former Bumble Bee Foods LLC CEO Christopher
Lischewski for his role in a scheme to fix canned tuna prices.
(WSJ)
California has recovered more than $23 million from 52
automobile parts makers in settlements over a bid-rigging
investigation. (Associated Press)
Amazon is challenging Japan's traditional service culture by
leaving packages at the door. (Nikkei Asian Review)
Indian e-commerce company Flipkart Group led a $60 million
investment round in logistics startup Shadowfax. (Economic
Times)
European Union member states want to review the EU tax exemption
for ship fuel oil. (Shipping Watch)
China State Shipbuilding Corp. is designing a l iquefied natural
gas-powered containership with capacity for 25,000 20-foot
containers. (Lloyd's List)
Several new chemical plants are coming online that signal coming
growth in U.S. resin production. (Petrochemical Update)
DP World-owned regional shipping line Unifeeder Group took a
controlling stake in Singapore operator Feedertech Group. (Port
Technology)
A majority of British businesses in a survey say they value cost
savings from suppliers over innovation. (Logistics Manager)
ABOUT US
Paul Page is editor of WSJ Logistics Report. Follow the WSJ
Logistics Report team: @PaulPage , @jensmithWSJ and @CostasParis.
Follow the WSJ Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
December 06, 2019 10:42 ET (15:42 GMT)
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