This Week on Supply Chain Now: June 8th – 12th

An estimated 12% of global trade worth more than $1 trillion traverses the Red Sea each year. When Houthi rebels started attacking commercial vessels in November 2023, ocean carriers began rerouting container ships around Africa’s Cape of Good Horn rather than through the Suez Canal on voyages from Asia to Europe. That greatly increased travel time and costs. As of March of this year, shipping through the Red Sea was still down 70% from before the attacks began, according to The Economist, with many ocean carriers still avoiding the Bab el-Mandeb Strait, which separates the Red Sea from the Gulf of Aden and the Arabian Peninsula. Maritime Industry Caught in the Crosshairs Houthi rebels launched attacks on ships in the Red Sea in response to Israel’s military operations in Gaza. The Houthis attacked more than 100 cargo ships between November 2023 and January 2025. The attacks, with missiles and drones, sunk two vessels and killed four sailors. In late October 2024, a headline in gCaptain read, “Red Sea Is Now So Dangerous Even NATO Warships Are Avoiding It.” “The United States Navy continues to send warships through the Red Sea, but its mission to protect merchant ships – Operation Prosperity…

Lean manufacturing is all about reducing waste and increasing efficiency. Manufacturers have been implementing lean practices for decades and have stood the test of time. Now, with technological advancements, lean methodologies can be more transformative than ever before. “Integrating automation into lean manufacturing is a powerful strategy. Unlike traditional automation, which often aims to increase production capacity without considering real needs, lean automation focuses on the smart and selective application of technologies to meet specific continuous improvement goals and eliminate inefficiencies,” the Kaizen Institute said. “Digital transformation provides an unprecedented opportunity for implementing lean,” it continued. “When applied within lean, tools like the Internet of Things (IoT), artificial intelligence (AI), and data analytics can revolutionize how organizations detect and eliminate waste.” What is Lean Manufacturing? In “The Machine That Changed The World,” published in 1990, lean production is hailed as “Toyota’s secret weapon in the global car wars.” The Toyota Production System was developed following World War II from “a series of simple innovations … to provide both continuity in process flow and a wide variety in product offerings,” according to the Lean Enterprise Institute. In “Lean Thinking,” a 1996 follow-up to “The Machine That Changed The World,” authors James…