This week’s supply chain and logistics news highlights significant policy shifts, major corporate investments, and advancements in logistics technology. The U.S. has imposed a 25% tariff on foreign-made cars, likely driving up vehicle prices and disrupting the automotive industry. Meanwhile, Johnson & Johnson is investing $5.5 billion to expand its U.S. manufacturing, strengthening its pharmaceutical and medical device supply chains. In the food sector, the Trump administration has delayed the FDA’s food traceability rule, raising concerns about public health safety. FedEx continues to grow its healthcare logistics business, securing nearly $400 million in new contracts. Lastly, Infor and Kinaxis have partnered to launch an enterprise planning solution aimed at enhancing supply chain efficiency for discrete manufacturers. Stay informed as these developments shape global supply chain dynamics.
I will be headed to Kinaxions in Austin, TX this upcoming week, please reach out if you will also be attending!
Top Supply Chain & Logistics Headlines for the Week :
US Imposes 25% Tariff on Foreign-Made Cars
President Donald Trump has signed an executive order implementing a 25% tariff on all automotive vehicles made outside of the U.S., effective April 2. This move is part of an effort to boost domestic manufacturers by making foreign-made cars more expensive. The tariffs will apply to imported passenger vehicles, light trucks, and some auto parts. For cars protected by the United States-Mexico-Canada Agreement, only the foreign parts that make up the vehicle will be subject to the tariff. This decision is expected to lead to higher car prices, both new and used, as well as increased maintenance costs and insurance premiums. The automotive industry will likely see significant disruptions, with potential price increases of $5,000 to $10,000 per car, depending on the make and model.
Johnson & Johnson Expands Manufacturing in the United States
Johnson & Johnson is planning a $5.5 billion investment in a major U.S. expansion in manufacturing, which is a strategic move to bolster its production capabilities in the pharmaceutical and medical device sectors. This initiative aims to enhance production efficiency, support innovation, and strengthen supply chain resilience. By expanding its manufacturing footprint, J&J seeks to meet the growing demand for healthcare products and ensure their availability. The investment will likely involve upgrading existing facilities, building new ones, and incorporating advanced technologies to streamline operations. This move underscores J&J’s commitment to maintaining a robust and reliable supply chain, which is crucial for delivering high-quality healthcare solutions to patients and consumers. The company officially broke ground Friday on a new 500,000-foot biologics manufacturing facility in Wilson, North Carolina.
The Trump Administration Delays Traceability Rule to Contain Foodborne Illness Outbreaks
The Trump administration has postponed the FDA’s food traceability rule by 30 months, pushing its implementation to July 2028. This rule was designed to improve recordkeeping for companies and grocery stores, enabling quicker removal of contaminated foods during outbreaks. The delay follows several significant foodborne illness incidents, such as E. Coli and listeria, affecting major brands like Boar’s Head and McDonald’s. While the National Grocers Association supports the delay, citing challenges for smaller grocers, the Center for Science in the Public Interest criticizes it, arguing that it compromises public food safety. The delay in implementing the FDA’s food traceability rule has implications for the supply chain. This rule intends to enhance the traceability of food products, allowing for quicker identification and removal of contaminated items during outbreaks. By postponing the rule, the supply chain remains vulnerable to inefficiencies and delays in responding to foodborne illness incidents.
FedEx captures nearly $400M in new healthcare business
FedEx has announced a significant expansion in its healthcare logistics business, securing nearly $400 million in new annualized revenue over the next 90 days. This growth is largely attributed to the success of their FedEx Surround platform, which provides real-time shipping visibility, crucial for high-value healthcare shipments. FedEx is also using technology from its returns platform to benefit healthcare customers who need recurring collaborative delivery services, such as moving lab shipments between medical providers. With this new business, FedEx aims to close the fiscal year with approximately $9 billion in healthcare revenue. This move is part of FedEx’s broader strategy to compete with UPS, which reported $10.5 billion in healthcare revenue in 2024 and aims to reach $20 billion by 2026. Last year, FedEx reported gains of $500 million in quality healthcare agreements.
Infor and Kinaxis Launch Enterprise Planning Solution for Discrete Manufacturers
Infor, the industry cloud complete company, and Kinaxis® Inc. (TSX: KXS) an end-to-end supply chain orchestration, today announced a new partnership that will deliver improved alignment of supply chain plans with business objectives and strategies for midmarket discrete manufacturing companies. The partnership includes launching Kinaxis Planning One for Infor CloudSuite, which integrates Infor’s industry-specific CloudSuite solutions for discrete manufacturers with the advanced supply chain orchestration solutions from Kinaxis and its flagship platform Maestro. Customers – specifically those in automotive, industrial, consumer durables, high-tech, and aerospace and defense – can seamlessly connect operational, tactical, and strategic planning processes across supply chain networks to create a single source of truth for their data. Kinaxis Planning One for Infor CloudSuite incorporates demand, inventory, and supply planning in one view with powerful scenario management, enabling manufacturers to model different demand and supply scenarios and select the best plan based on revenue, cost, time, or sustainability drivers.
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