NAW slams FTC move to prohibit most noncompete deals | Use supply chain management strategies to mitigate risk | NAW vows to fight DOL's new OT rule for salaried workers
The Federal Trade Commission voted 3-2 to approve a rule prohibiting the use of noncompete provisions for many workers. The National Association of Wholesaler-Distributors said the FTC's ban exceeds the agency's authority, threatens to exacerbate workforce shortages and imposes undue legal burdens on wholesaler-distributors. "The FTC's actions represent an egregious power grab, well beyond its jurisdiction of antitrust enforcement and consumer protection," said Brian Wild, NAW's chief government affairs officer, adding the "reckless expansion sets a dangerous precedent for regulatory intrusion."
Adam Cherry, vice president of strategic sourcing and supply chain at fastener distributor and manufacturer Optimas Solution, and Jeremy Clarke, Optimas' vice president of supply chain and procurement, detail supply chain management strategies aimed at mitigating risk, boosting productivity, shortening lead times and saving money. Cherry and Clarke discuss how companies can enhance their bench strength, react to shifts in demand and production, gain greater inventory visibility and integrate automation and other technologies into operations.
The Department of Labor has set the new annual salary threshold for salaried managers to receive overtime pay at $43,888 -- up from the current $35,568 -- and the new threshold is effective July 1, which will rise again on Jan. 1 to $58,656. The National Association of Wholesaler-Distributors strongly opposed the DOL rule and vowed to exhaust all avenues to prevent its enforcement. "The DOL's rule would add new regulatory burdens and compliance costs to an industry already grappling with workforce shortages and excessive regulations," said Lauren Williams, NAW's associate vice president of government relations.
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Around 100 Ocada engineers have spent years training AI-powered robots at its grocery fulfillment center in Luton, England, to recognize items, grab them and move them, and the firm is developing various attachments for the robot arms that will give them greater dexterity to handle differently shaped and sized items. Ocado expects robots to handle 70% of products in two to three years and hopes to sell its automation technology to companies in other industries.
Amazon has developed the AI-powered Package Decision Engine that uses a computer vision tunnel to scan products for their dimensions and features and selects the best shipping materials for the items. Correctly sized boxes, soft mailers and eliminating packaging when appropriate have helped the ecommerce marketplace save an estimated 60,000 tons of cardboard per year in North America and reduced 2 million tons of plastic and cardboard since 2015.
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AI technology is making progress in language tools, image identification and other facets of communications, though Allison Carter warns risks remain in copyright, deepfakes and geopolitics. Carter urges honesty and clear communication as organizations embrace the technology.
Truth-telling at work can alleviate a lot of problems down the road, such as a deadline that can't possibly be made, but it needs to be constructive. "If you're giving feedback to your boss, build trust and rapport by standing in their shoes, says Sue Ingram, a communications and HR expert. "Understand what is keeping your boss up at night - acknowledge what they have been given to deliver on by their board or shareholders: 'I know you want to achieve this. I have some feedback here that I think will help you achieve that.'"
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The NAW Company Roundtables are an exclusive community of thought leaders from Billion Dollar and Large Company distribution enterprises who congregate to network with non-competing peers in multiple lines of trade on key issues. Learn more about the many Roundtable event opportunities we offer, and how your leaders can get involved. Learn more.
Join us on May 22 at 1 pm ET for the next webinar in our "How-to with NAW" series. Each episode is a micro-revolution for your distribution business, delivering practical takeaways and actionable steps you can implement immediately.