This week in supply chain news, major companies are demonstrating a mix of strategic adaptations and responses to global pressures. ExxonMobil and Kinaxis are collaborating to develop a next-generation supply chain management solution specifically for the complex oil and gas industry, aiming to increase resilience and provide comprehensive visibility. In a push for network efficiency, FedEx has launched a new direct cargo flight between Dublin, Ireland, and Indianapolis, Indiana, bypassing congested coastal hubs to reduce transit times. The pharmaceutical sector is also focused on resilience, with Eli Lilly and Amgen announcing significant U.S. manufacturing investments to bring critical drug production back to North America. Conversely, General Mills is restructuring its supply chain by closing three manufacturing plants in Missouri as a cost-saving measure in response to changing consumer spending habits. Finally, the U.S. government is imposing new tariffs on imported wood products and furniture, effective October 14, 2025, in a move to address what it identifies as a threat to the domestic industry and supply chain security.
The News of the Week:
The oil and gas industry supply chain is one of the most complex in the world. It involves myriad complex production assets both onshore and offshore, transporting highly volatile products around the globe through pipelines, tank farms, ports, ships, rail, and truck. The end product could be gasoline, petrochemicals, natural gas, hydrogen, or any of hundreds of products from asphalt to motor oil. Disruptions to the oil and gas supply chain can have serious consequences for end users. The industry needs more comprehensive supply chain solutions that increase resilience, provide complete visibility across all aspects of the supply chain, and enable swift responses to business challenges and opportunities. Kinaxis and Exxon are collaborating to digitalize various sectors of Exxon’s business. They aim to leverage Kinaxis’s Maestro software to enhance planning and decision-making processes. Through this collaboration, the two companies aim to share solutions tailored to the oil and gas industry, which currently lacks supply chain management solutions that cater to their specific needs.
FedEx Expands Global Air Network with New Dublin- Indianapolis Route
In an effort to shorten transit times and strengthen its international network, FedEx has launched a new direct cargo flight between Dublin, Ireland, and Indianapolis, Indiana. The new four-day-a-week service bypasses traditional, more congested coastal gateways, which is expected to reduce shipping times by a full day for goods moving between Ireland and the U.S. Midwest. This strategic expansion is a response to the growing trade between the two regions and demonstrates how major carriers are adapting their networks to create more direct and efficient routes to meet evolving customer demands.
Eli Lily and Amgen Announce Massive U.S. Manufacturing Investments
In a major push for domestic drug production, pharmaceutical giants Eli Lilly and Amgen have announced huge investments in new U.S. manufacturing facilities. Eli Lilly is planning a new $6.5 billion factory in Houston, while Amgen is expanding its Puerto Rico plant with a $650 million investment. These moves are a direct response to the global supply chain vulnerabilities exposed in recent years and represent a significant effort to boost the resilience of the U.S. pharmaceutical supply chain. The investments aim to bring critical drug production back to North America, creating jobs and reducing reliance on overseas manufacturing.
General Mills is Closing Three Manufacturing Plants in Missouri
General Mills is closing three manufacturing plants in Missouri—a pizza crust facility in St. Charles and two pet food locations in Joplin—as part of a multiyear supply chain restructuring effort. The company expects to incur $82 million in restructuring charges, including asset write-offs and severance costs. This action is part of a broader trend among food and beverage companies to implement cost-saving measures in response to consumer spending pullbacks. The closures follow previous organizational actions by General Mills, such as job cuts and the closure of its innovation unit, and are intended to improve the company’s competitiveness.
US to Begin Furniture, Wood Import Tariffs on Oct. 14
New tariffs on imported wood products, including furniture, will take effect on October 14, 2025, following a Section 232 national security investigation. The initial duties will be 10% on softwood lumber and 25% on upholstered furniture, kitchen cabinets, and vanities. On January 1, the tariff rates are scheduled to increase to 30% for upholstered furniture and 50% for kitchen cabinets and vanities. The executive order provides for lower tariff caps for imports from specific trading partners, such as the U.K., Japan, and the European Union. These new tariffs are intended to address what the administration has identified as a threat to domestic industry and supply chain security.
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