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<ul class="summary-list"><li>Victims of the E. coli outbreak linked to McDonald's are preparing to sue.</li><li>At least one has already filed a lawsuit alleging negligence has been filed.</li></ul>Victims who have been sickened in connection to the <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-e-coli-outbreak-tied-quarter-pounders-2024-10">deadly E. coli outbreak linked to McDonald's</a> famed Quarter Pounders are already lawyering up.Top food safety attorney Ron Simon of the Houston, Texas-based law firm Ron Simon &amp; Associates told Business Insider Wednesday that his phones have been "ringing off the hook" after federal health officials reported the outbreak Tuesday."When we came to the office this morning, we had 100 intakes, 100 phone calls, and emails asking us to represent them," the veteran attorney said. "So our staff is right now going through all of those and determining which are cases."As of Wednesday afternoon, Simon's firm had already been retained by at least 12 people who, according to the attorney, recently tested positive for an E. coli infection after eating <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-quarter-pounder-ecoli-outbreak-why-important-sales-2024-10">McDonald's meals</a>.One of those people, a Colorado man, brought the first lawsuit against the fast-food giant Wednesday — and Simon says he expects his firm to file dozens more lawsuits in the coming days."We will file individual lawsuits on behalf of each of our clients," said Simon, who noted the people he is currently representing range in age from as young as 15 to 55-years-old."Each of the lawsuits will seek compensation for their lost wages, for the significant medical bills they're going to incur, and also to compensate them from the pain and suffering of becoming sick and even hospitalized," Simon said.At least three of Simon's clients have been hospitalized as a result of their E. coli infection, according to the attorney.Simon called the outbreak "a completely preventable tragedy.""If you properly test the food and your ingredients before you put them into service, before you serve them, there shouldn't be outbreaks," he said.Colorado resident Eric Stelly alleges in his lawsuit that he ate food from his local McDonald's in the city of Greeley on October 4 and two days later fell ill with E. coli symptoms, which include bloody diarrhea and vomiting.By October 8, Stelly was hospitalized and he later tested positive for the E. coli O157:H7 strain — the same E. coli strain federal health officials said was linked to the outbreak — the lawsuit, filed by Simon's firm along with the firm Meyers &amp; Flowers, LLC, says.The lawsuit, which alleges negligence by McDonald's, says that health investigators confirmed Stelly was part of the E. coli outbreak linked to McDonalds.Representatives for McDonald's did not immediately respond to a request for comment by BI.In a statement, Simon said the <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-ecoli-outbreak-investigation-update-compared-chipotle-2024-10">McDonald's-related E. coli outbreak</a> "will be one of the most significant food poisoning outbreaks this year.""Through this lawsuit and others, we will make sure that all of the victims are fully compensated for their losses, that their voices are heard, and that McDonald's and its suppliers permanently fix the health and safety violations that caused their food to become contaminated with E. coli," he said.Simon — who also filed a <a target="_blank" class="" href="https://www.businessinsider.com/boars-head-listeria-outbreak-deli-meat-death-holocaust-survivor-2024-9">wrongful death lawsuit</a> on behalf of a Holocaust survivor's family against Boar's Head in connection to the recent deli meat listeria outbreak — told BI that he expects McDonald's to settle the anticipated onslaught of claims for millions of dollars."It would be gross negligence on McDonald's part not to try to resolve these cases," Simon said. "There were clearly mistakes made in the testing process — food that was supposed to be safe was not safe. It was contaminated."The Centers for Disease Control and Prevention said Tuesday that the E. coli outbreak has so far sickened at least 49 people across 10 states and resulted in one death. The outbreak was linked to 10 hospitalizations, with most of the illnesses occurring in Colorado and Nebraska, according to the CDC.Most people impacted reported eating McDonald's Quarter Pounder hamburgers before becoming sick, the federal agency said.Investigators are working to confirm which ingredient in the hamburgers is responsible for the contamination.McDonald's said it paused the distribution of <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-ecoli-outbreak-investigation-update-compared-chipotle-2024-10">slivered onions</a> in the Quarter Pounder and temporarily removed the burger from restaurants in the impacted areas.

Top food safety lawyer says his phones are 'ringing off the hook' after McDonald's E. coli outbreak 

In April, the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) governor Shaktikanta Das referred to <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword> as the ‘elephant in the room’. He said, “The elephant has now gone out for a walk and appears to be returning to the forest. We would like the elephant to return to the forest and remain there on a durable basis… Elephant moves slowly, and last mile inflation tends to be sticky.” On Friday, the Indian government data showed that the year-on-year inflation rate based on the Consumer Price Index (<keyword id="20468215" type="General" weightage="20" keywordseo="CPI" source="keywords">CPI</keyword>) for June 2024 stood at 5.08 per cent — rising from 4.75% last month. This was the first time the headline inflation had risen since December 2023! Looks like the elephant decided to stop and look back on its way to the forest. The question remains, what’s next — will it return to the forest or return to the room to haunt us again? <h2>Food price inflation at a record high</h2> The major driver for the higher inflation figures this month has been the rising <keyword id="19960157" type="General" weightage="20" keywordseo="food-prices" source="keywords">food prices</keyword> across India. In fact, food price inflation almost doubled year-on-year in June, rising to 8.36 per cent last month compared to 4.63 per cent in June 2023. Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data of the National Statistical Office (NSO). Government data showed that <keyword id="513422" type="General" weightage="20" keywordseo="retail-inflation" source="Orion">retail inflation</keyword> for all food segments, including cereal, meat, eggs, milk, oils, fruits, vegetables, pulses, sugar, spices, prepared snacks, and sweets, increased month-on-month. This was the main cause for retail inflation hardening in June, diverging from the previous months' moderation. While the inflation rate based on the all-India CPI for June 2024 stood at 5.08%, rural and urban inflation rates also spiked to 5.66 per cent and 4.39 per cent, respectively. “Barring the food basket, inflation is indicating signs of bottoming out broadly across the non-food categories, also seen in the inflation in the core categories averaging at 3.5% in the last six months. A stable monsoon will play an important role in stabilising food prices and inflation levels over the next few months,” said Vivek Rathi, National Director Research, Knight Frank India. In May, annual retail inflation was at a 12-month low of 4.75%, slightly down from April's 4.83%. In December last year, retail inflation stood at 5.7 % and had been moderating until June. On the other hand, the US CPI rose only 3% on an annual basis in June versus expectations of 3.2%. Month-over-month, the US CPI declined 0.1%, on expectations for a 0.1% rise. <h2>There goes the chance of an early rate cut?</h2> While European central banks started to cut interest rates last month, hopes of such policy moves seem to have been derailed by these inflation figures. Indian central bank, RBI, has remained cautiously focused on inflation as the growth prospects remained robust. It has been waiting for the final phase of disinflation to materialise before considering rate cuts. The situation, however, does seem rather peculiar — as long as inflation does not align with the central bank's 4% target, the interest rates may remain rather high. However, the current economic environment is not gloomy at all, characterized by a robust GDP growth rate, estimated at 8.2% for 2023-24. Hence, the RBI adopts a wait-and-see approach. And the wait is likely to continue a little while longer. This year, food prices have become a significant issue for policymakers in India, and the RBI governor pinned his hopes on a good monsoon season to alleviate the food price inflation concerns. So far, the monsoon has stood up to our expectations, yet the food prices have remained stubbornly high, mainly due to extended heat wave conditions in June. "The CPI inflation came marginally higher than our expectations. While the <keyword id="67286" type="General" weightage="100" keywordseo="food-inflation" source="Orion">food inflation</keyword> risks will continue to dominate in the near term, we expect better sowing patterns and spatial distribution of rains to eventually ease the price pressures beyond these volatile months. Having said that, the central bank will be in no hurry to ease <keyword id="20104157" type="General" weightage="20" keywordseo="monetary-policy" source="keywords">monetary policy</keyword> given the headroom from robust growth in the backdrop of near-term inflation risks," said Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank. India's retail inflation remains within the Reserve Bank of India's (RBI) comfort range of 2-6% but exceeds the ideal 4% scenario. While inflation is a global concern, India has so far managed its inflation trajectory relatively well. Since May 2022, the RBI has raised the repo rate by 250 basis points cumulatively to combat inflation. However, over the last eight policy cycles, the central bank has kept the rates consistent at 6.5%. The next monetary policy meeting of the RBI is scheduled for early August. And with the higher-than-expected inflation data, the central bank is likely to keep the rate unchanged next month as well for the ninth consecutive month. However, hopes are still alive for a rate cut towards the end of the year. "We are not ruling out a stance change in October 2024 and a 25 bps rate cut each in December 2024 and February 2025, followed by an extended pause, if the food inflation outlook turns decidedly favourable on the back of a normal magnitude and favourable distribution of rainfall in the rest of the monsoon season, and there are no other shocks, either global or domestic," said Aditi Nayar, Chief Economist at ICRA. (With inputs from ANI and PTI) <div type="Article" hostid="261" msid="110784179" title="Monetary Policy Committee keeps repo rate unchanged at 6.5%, confirms RBI governor Shaktikanta Das" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div> <div type="Article" hostid="261" msid="110788776" title="RBI retains inflation projection for FY25 at 4.5%" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div>

Inflation spikes in June 2024 due to high food prices; Likely to affect RBI’s decision on interest rate

New Delhi: While the <keyword id="20199673" type="General" weightage="20" keywordseo="moderation" source="keywords">moderation</keyword> in <keyword id="20468215" type="General" weightage="20" keywordseo="CPI" source="keywords">CPI</keyword> <keyword id="19895000" type="General" weightage="100" keywordseo="inflation" source="keywords">inflation</keyword> is a welcome development, experts caution that the road ahead could be bumpy. The sequential momentum in <keyword id="19960157" type="General" weightage="20" keywordseo="food-prices" source="keywords">food prices</keyword> remains strong, with a 2.5 per cent month-on-month increase in prices, higher than the average sequential growth, indicating that inflationary pressures may persist. The uneven distribution of monsoon rainfall and the potential for excess rainfall in the coming months pose additional risks to food prices. RajSinha, Chief Economist at CareEdge, noted, "Despite the moderation in the inflation of the food and beverage basket when compared to last year, the sequential momentum remains strong, with a 2.5 per cent M-o-M increase in prices, higher than an average sequential grow." Dharmakirti Joshi, Chief Economist at CRISIL, highlighted the impact of the high-base effect, stating, While the high-base effect -- along with sequential monthly movements -- was supportive of food inflation, it had an adverse bearing on core inflation. The big worry now is food prices continue to be elevated with the on-month rise slightly higher than usual for July. "The good part is monsoon and sowing have been progressing well and the expectation is that the arrival of fresh supplies in the market should over the next few months curb the food price rise. Overall, though, we expect inflation to ease and average 4.5 per cent this fiscal mostly due to softer food prices. This should allow the <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> to begin cutting earliest by October", Joshi added. Raghvendra Nath, Managing Director of Ladderup Wealth Management, expressed optimism regarding the CPI data, stating, "This decline is primarily attributed to a reduction in the Consumer Food Price Index, which fell from 9.36 per cent in June to 5.42 per cent in July. This improvement should offer reassurance to the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (RBI), which has indicated that <keyword id="19920341" type="General" weightage="20" keywordseo="rate-cuts" source="keywords">rate cuts</keyword> will occur only when inflation sustainably aligns with its 4 per cent target. He added, "Positive expectations for the monsoon and adequate buffer stocks support the continued downward trend of CPI. However, any substantial rise in crude oil prices due to the ongoing geopolitical crisis could adversely affect inflation and the broader economy." Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry, also commended the decline in CPI inflation, stating, "It is highly appreciable that the CPI inflation has exhibited a decline in the year-on-year inflation rate at 3.5 per cent for the month of July 2024 from 5.08 per cent in June 2024." He added, "The food and beverages inflation eased sharply from 8.4 per cent in June 2024 to 5.06 per cent in July 2024 and fuel and light inflation from -3.7 per cent in June 2024 to -5.4 per cent in July 2024, are the main drivers of the softening inflation trajectory." India's Consumer Price Index (CPI) inflation eased significantly to 3.54 per cent in July 2024, marking its lowest level in nearly five years and a sharp drop from 5.08 per cent in June. This decline, which brought inflation below the Reserve Bank of India's (RBI) medium-term target of 4 per cent for the first time since 2019, has been largely attributed to a favourable base effect and a dramatic reduction in <keyword id="20621131" type="General" weightage="20" keywordseo="vegetable-prices" source="keywords">vegetable prices</keyword>. The primary driver behind this sharp moderation was the steep fall in vegetable inflation, which plummeted from 29.3 per cent in June to 6.8 per cent in July. The Consumer Food Price Index (CFPI) also saw a significant reduction, falling from 9.36 per cent in June to 5.42 per cent in July, contributing to the overall easing of CPI inflation. (ANI)

Experts welcome moderation of inflation in July, by warns of continued inflationary pressure ahead

New Delhi: The ongoing volatility in the prices of key food items such as tomatoes, onions, and potatoes (collectively known as TOP) and pulses continues to pose significant challenges for the <keyword id="19913109" type="General" weightage="20" keywordseo="monetary-policy-committee" source="keywords">Monetary Policy Committee</keyword> (MPC) of the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords">RBI</keyword>), highlights a report by <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords">SBI</keyword>. "Current volatility in prices of TOP and pulses continues to challenge the MPC, keeping the headline above target at 5.1 per cent in June 2024," said the report. The report highlighted that this instability in <keyword id="19960157" type="General" weightage="20" keywordseo="food-prices" source="keywords">food prices</keyword> has kept the headline Consumer Price Index (CPI) <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword> above the targeted level, reaching 5.1 per cent in June 2024. While the inflationary pressures remain a concern, the report stated that there is hope on the horizon due to the currently above-normal <keyword id="19968257" type="General" weightage="20" keywordseo="monsoon" source="keywords">monsoon</keyword> and increased sowing activity, which are further supported by the potential onset of a La Nina event later in the year. "The currently above-normal monsoon and sowing, backed up by a potential La Nina event later, promise reprieve in later quarters," said the report. Importantly, the report added that it is now expected that the CPI will remain above the RBI's medium-term target of 4 per cent in all quarters up until the first quarter of FY26. This persistent overshoot highlights the ongoing inflationary pressures in the economy. "Notably, now the CPI is expected to be above RBI's target of 4 per cent in all quarters till Q1FY26," the report added. However, the report noted that the Monetary Policy Committee expects a moderation in inflation during the fourth quarter, which is anticipated to help keep the overall CPI projection for FY24 unchanged at 4.5 per cent. The SBI report also believes that the volatility in food prices, driven by uneven spatial and temporal distribution of monsoon rains, presents an upside risk to the current inflation projections. As a result, SBI maintains its CPI estimate for FY25 at 4.7 per cent year-on-year. In the latest MPC meeting on Wednesday, RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> said inflation will moderate from July onwards as the monsoon has improved and global food prices have shown signs of easing in July. Das said, "Global food prices showed signs of easing in the month of July after registering an increase since March 2024." A degree of relief in food inflation is expected from the pickup in southwest monsoon and healthy progress in Kharif sowing. Buffer stocks of cereals continue to be above the norms, according to RBI Governor Shaktikanta Das. Das added, "Assuming a normal monsoon and taking into account the 4.9 per cent inflation print, Q1 CPI inflation for the current financial year (2024-25) is projected at 4.5 per cent, with q2 at 4.4 per cent, Q3 at 4.7 per cent and Q4 at 4.3 per cent. CPI inflation for the first quarter of next financial year (Q1 2025-26) is projected at 4.4 per cent."

High food prices raise concerns but improved monsoon offers hope for RBI: SBI report

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/dollar-tree-will-sell-7-dollar-items-straying-from-model-2024-3">Dollar Tree</a> is considering selling Family Dollar almost a decade after acquiring it.</li><li>Photos show one issue for the troubled chain: Products getting crushed in transit to stores.</li></ul>Three times a week, a truck driver reports to a distribution center for <a target="_blank" href="https://www.businessinsider.com/family-dollar-store-tour-shows-why-its-struggling-closing-stores-2024-3">Family Dollar</a> in Florida and picks up a trailer full of products destined for one of the retailer's stores.But before he shows up, products in the trailer are already crushed, covered in ants, or have gone soggy in the Florida humidity. Recent examples from the driver's deliveries include crushed jugs of laundry detergent that had leaked onto the trailer's floor and a bag of cheese balls that had burst, sending the snacks into the crannies between water bottles."Almost every single trailer that I've had, there's product damage," the truck driver told Business Insider. He asked not to be identified, citing potential retaliation at work. BI confirmed the driver's identity and employment.<div type="image" title="Crushed bottles of laundry detergent sit in a cardboard box with the detergent itself leaking on the floor of a trailer. A box with the caution &quot;Think Safely&quot; appears next to the detergent." height="952" width="1208" msid="111347792" hostid="261" sizebytes="97590"></div>Dollar Tree executives, who have managed Family Dollar since the company acquired it in 2015, have talked on earnings calls about the impact of high levels of "shrink" — products that have to be written off before they can be sold. The company has cited <a target="_blank" href="https://www.businessinsider.com/theft-just-keeps-getting-worse-for-dollar-tree-family-dollar-2024-3">theft</a> by patrons as a leading cause.But photos from and an interview with the driver show another common form of loss that's much more within Family Dollar's control: Products that get damaged or go bad thanks to poor packing at distribution centers.That could prove a challenge for Dollar Tree. It already unveiled a plan in March <a target="_blank" href="https://www.businessinsider.com/dollar-tree-closes-1000-family-dollar-stores-nightmare-acquisition-2024-3">to close 1,000 Family Dollar stores</a> — about 13% of the chain's locations.Then, earlier this month, it went a step further and said that it was considering <a target="_blank" href="https://www.businessinsider.com/dollar-tree-is-considering-selling-family-dollar-its-problem-child-2024-6">a sale of Family Dollar</a>. Inefficient logistics and losses from damaged products — as well as theft — may represent a major challenge for any potential buyer trying to turn around the business.<div type="image" title="Cheese balls sit in plastic-wrapped cases of bottled water." height="880" width="1214" msid="111347798" hostid="261" sizebytes="101700"></div>The problems with damaged products start at Family Dollar's distribution center, the driver told BI.There, workers often load trailers as quickly as possible, piling heavy items on top of sideways tubes of Pringles chips and precariously stacking packs of bottled water several layers high."They put a lot of heavy oils and Pepsi on top, and that tears the bags open," the driver said.It's also common for the trailers to sit fully loaded at the distribution center for weeks before they make their way to a store, according to the driver. As they sit around, breakfast cereal, pies, and bags of sugar can break open, attracting ants, spiders, and other pests, he said."All that sugary stuff that gets opened, that's what draws the insects in."<div type="image" title="Cans of Pringles potato chips sit in a carton on their side with a plastic tote balanced on top of it." height="978" width="1220" msid="111347794" hostid="261" sizebytes="52082"></div>What Family Dollar and Dollar Tree are doing about the damaged products is unclear.The driver said he's been instructed to send photos — but no itemized list or other details — of damaged products to his boss. "I don't know what they do with these pictures," he said.Dollar Tree did not respond to a request for comment from BI.<div type="image" title="Boxes of paper goods and pet food sit on the floor and piled in a cart in the Pet section at a Family Dollar store." height="3000" width="4000" msid="111347789" hostid="261" sizebytes="1012530"></div>Meantime, the merchandise that makes it off the truck often ends up overwhelming the Family Dollar stores. Often, the stores don't have more than one employee on duty at a time, meaning the driver has to unload the truck — which contains tens of thousands of pounds of stuff — by himself.And if the storage room in the back of the store isn't big enough, products end up blocking store aisles. At some dollar stores, including at rival chain Dollar General, the <a target="_blank" href="https://www.businessinsider.com/dollar-general-stores-closing-fire-code-violations-too-much-stuff-2023-2">aisle clutter is so bad that it poses a fire safety risk</a>, BI previously reported."All these little stores are getting way more merchandise than they can house," the driver said.Do you work for Family Dollar, Dollar Tree, Dollar General, or another retailer and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com

Photos of trucks full of leaking detergent and spoiled food reveal a big challenge for Family Dollar

New Delhi [India], November 2 (ANI): In a move to further make the edible oil supply chain seamless, the central government has exempted the current stock limit for wholesalers and big chain retailers. The order will come into effect immediately, a <keyword id="393956" type="General" weightage="20" keywordseo="ministry-of-consumer-affairs" source="Orion">Ministry of Consumer Affairs</keyword>, <keyword id="427106" type="General" weightage="80" keywordseo="food-and-public-distribution" source="Orion">Food and Public Distribution</keyword> statement said late Tuesday evening. The removal of wholesalers and big chain retailers from the stock limit order would allow them to keep various varieties and brands of edible oils, which they are unable to keep at present due to the limits imposed. "A need was felt for exempting big chain retailers and wholesalers from the stock control order as reports were coming that Wholesalers and big chain retail outlets were facing problems in their sale due to the Control Order as the limits specified for them was very less and replacement of shelf stocks in city limits is not possible on an everyday basis," the statement read. In view of the restoration of ample supplies and continuous decline in the prices of edible oils both in the international and domestic market, the statement said it was an "opportune time" for the exemption. "The removal will also have a positive effect on the oilseed prices as it will boost procurement of the oilseeds hereby increasing the returns of domestic oilseeds growing farmers," it added. Initially, the stock limits were imposed in October 2021. Subsequently, the stock limit quantities on edible oils and oilseeds were extended upto June 2022 and later the order was further extended upto December 31, 2022. "The Stock Limit Order was imposed in the country due to increasing prices of edible oils both in international as well as domestic market. Its high volatility was leading to hoarding, profiteering and black marketing at that time. This timely intervention by the Government had led to significant decline of the skyrocketing prices and had helped to keep a check on the hoarding, especially soyabean seeds," Tuesday's statement further said. India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its need through imports. (ANI)

Govt exempts wholesalers, big retailers from stock limit on edible oil, oilseeds

<ul class="summary-list"><li>Colgate-Palmolive uses sensors and robotics to speed up quality checks with less human intervention.</li><li>These tools allow the company to optimize manufacturing at its 49 plants.</li></ul>Colgate-Palmolive produces more than 15,000 tubes of toothpaste a minute.To ensure the manufacturing line was running properly, an employee would perform quality checks every 30 minutes to make sure that the Colgate toothpaste tube was aligned properly, its seal was sturdy, its artwork was printed properly, and the box's case matched the tube.But with new technology investments, sensors, and other digital tools, the company can now conduct quality checks continuously. Similarly, the consumer products giant is rolling out analytical testing for Hill's pet food, <a target="_blank" href="https://www.businessinsider.com/robots-warehouses-human-workers-startups-investors-amr-fetch-robotics-2022-10">using robotics to ensure the quality</a> of the food matches the desired formulation.With less human intervention, "people can really focus on the operation of the lines," Luciano Sieber, Colgate-Palmolive's chief supply-chain officer, told Business Insider.<h2 id="12915478-3930-408a-ad68-2c35ab4b4ad7">How COVID changed supply chains for consumer-products giants</h2>Colgate-Palmolive produces Irish Spring soap, Speed Stick deodorant, and Ajax cleaning supplies at 49 plants, and its goods in categories ranging from home to personal care are stocked at nearly 200 warehouses globally. Colgate-branded products are found in almost 60% of households worldwide.Like other <a target="_blank" href="https://www.businessinsider.com/cpgs-arent-planning-to-up-their-marketing-spend-but-will-if-consumers-rebel-against-price-increases-2023-2">consumer-packaged goods giants</a>, Colgate-Palmolive's supply chain was built on a fairly steady business model. Large volumes of goods are made at its plants, then shipped to warehouses that distribute them to large retailers.However, the supply chain is more complex now because <a target="_blank" href="https://www.businessinsider.com/people-revolutionizing-customer-experience-ai-2023-10">consumer shopping patterns</a> have changed. COVID led to a spike in demand at e-commerce stores that sell household goods, even those that were still available at physical stores. Food and personal-care products saw the greatest revenue growth in transitioning to online channels, according to the Commerce Department's International Trade Administration.That migration of spending has stuck, even after the pandemic waned, putting greater pressure on consumer brands to ensure their supply chains are as efficient as possible. CPG brands aren't just shipping to large accounts like Walmart and Target. Food and household goods are now coming from a lot more locations to reach shoppers.<h2 id="a0b45714-7cea-47ed-b03c-a01f98706e0d">Automation and AI allow for more efficient manufacturing</h2>Automating Colgate-Palmolive's manufacturing lines helps smooth out location-related variables, the company said.In Europe, where product formulas can vary by region, a plant might have hundreds of combinations of packs and formulas, and there are thousands of vendor partners for Colgate's toothpaste, tubes, and containers.With artificial intelligence, the plants can use <a target="_blank" href="https://www.businessinsider.com/forget-ai-algorithm-apocalypse-driving-humans-lives-data-stock-market-2024-4">algorithms to optimize the manufacturing plan</a> for all the different toothpastes the company produces."It supports our growth, but also it minimizes the amount of capital expenditure we need to invest in more capacity because we can optimize what we already have," Sieber said.Emma Rolfe, Colgate-Palmolive's senior vice president of global supply, demand, and e-commerce, said that leveraging AI helps the company more effectively adjust for changes to the workflow when a new formula is added or capacity requirements change when demand increases locally."That is something that today takes many hours, and you get many different answers depending on who you are," Rolfe said. "AI can help in a more standardized way."<h2 id="e821ca3a-c0fd-4b46-a31b-0f757a8424f2">New AI tools help track and trace goods</h2>Colgate-Palmolive is piloting digital AI tools, including <a target="_blank" href="https://www.businessinsider.com/ai-machine-learning-robotics-retail-supply-chain-technology-2023-10">track-and-trace technology</a>, that can give retailers automatic updates to their product orders, including any delays that might occur during shipping.Sales representatives can use a phone to scan a shelf in a store, leverage AI to look for gaps, and determine which items need to be restocked to meet the demand of that store's customer base.Last year, the company opened a new Hill's pet-food factory in Kansas, a 365,000-square-foot facility that's Colgate-Palmolive's first <a target="_blank" href="https://www.businessinsider.com/ai-factories-data-centers-nvidia-foxconn-2023-10">"smart" factory</a>, which relies on AI and automation and fewer people. It's allowed the company to shorten its production cycle, create flexibility to innovate new pet-food products, and decrease energy and water use compared to other plants, a <a target="_blank" href="https://www.prnewswire.com/news-releases/hills-pet-nutrition-opens-new-smart-factory-in-tonganoxie-to-meet-global-pet-owner-demand-for-science-led-nutrition-301957784.html#:~:text=TOPEKA%2C%20Kan.%2C%20Oct">press release</a> from the company said."Every single operation, like quality testing, has been automated and that enables for a much more efficient factory," Sieber said.As is often the case with AI and automation, new factories like the one in Kansas raise questions about their impact on jobs. But Sieber stresses that <a target="_blank" href="https://www.businessinsider.com/salesforce-ceo-retail-workers-lose-jobs-ai-2024-1">humans will always participate in manufacturing</a>."What we find in our most advanced sites is technologies alone, they don't solve everything," Sieber said. Upskilling Colgate-Palmolive's workforce, he said, moves people "away from doing manual work to really using the power of critical thinking and conceptual thinking to improve process performance."

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