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Two major shifts are changing the face of globaltransportation management as we know it: Supply chains are becoming increasingly complex, relying on partners and data beyond the four walls of the enterprise; The very definition of globaltransportation management is broadening and expanding well beyond the traditional TMS scope.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
If you are buying widgets, there are many ways to make your purchase, from going to a retail location, ordering online or using a standard procurement software tool that allows you to order lots of widgets and receive them over a specified period of time. Data rules. Data is critical to decision making. That is why relationships matter.
Supply Chain Matters provides our commentary and perspectives on published monthly globalmanufacturing PMI and supply chain activity indices. In our summary and perspectives focused on July 2022 reporting , we opined that July data reinforced a trending toward declining global supply chain production momentum. United States.
Supply Chain Matters highlights for readers a published report noting how various manufacturers are seeking and establishing added resiliency and control of component and production networks. Bloomberg reported in November 2022 that shipments of motor vehicles, computer parts and boats, manufactured in Mexico and destined for U.S.
In a prior published commentary, we provided highlights of March and Q1-2022 global production indices along with their implications. We now add highlights of March and Q1-2022 key globaltransportation and logistics indices. Trucking disruptions in these areas threaten the flow of inbound and outbound inventory. .
The latest data reinforces indications of a globalmanufacturing slowdown. GlobalManufacturing Output Global-wide manufacturing levels as reported by the J.P. GlobalManufacturing Output Global-wide manufacturing levels as reported by the J.P. The S&P Global U.S.
It advances digitization efforts, facilitates data cleaning, and streamlines supply chain planning, procurement, and execution. On the manufacturing front, machine learning conducts analysis of commodity prices and weather patterns to optimize harvesting. Regular checks and audits of supply chain information are necessary.
The Supply Chain Matters blog highlights March and Q1-2022 globalmanufacturing and supply chain indices, with the data indicating added headwinds and challenges in the months to come. Source: JP Morgan and S&P Global, March 2022. Source: JP Morgan and S&P Global, March 2022. Global Wide Production Activity.
The Supply Chain Matters blog highlights February globalmanufacturing and supply chain indices and challenges relative to product demand and supply network imbalance levels in the first quarter of 2022. Global Wide Production Activity. Morgan GlobalManufacturing PMI® report, a composite index produced by J.P.
Many supply chain management and direct procurement professionals are acutely aware of the ongoing shortages of key materials among multiple industry supply networks. The same could be stated for certain globaltransport assets with COVID-19 restrictions continuing among China’s major manufacturing centers and logistics networks.
The year featured continual component shortfalls, explosive inbound materials cost increases and continuous globaltransportation disruptions. By Q4, major European manufacturers were exploring alternative sources to produce energy-intensive products such as chemicals and fertilizers, with the U.S. Current Year 2022.
It advances digitization efforts, facilitates data cleaning, and streamlines supply chain planning, procurement, and execution. On the manufacturing front, machine learning conducts analysis of commodity prices and weather patterns to optimize harvesting. Regular checks and audits of supply chain information are necessary.
The Supply Chain Matters blog highlighted reported candid remarks from the CEO of aerospace manufacturer Airbus regarding the challenges of revised production and aircraft delivery plans on the company’s global supply network partners. 2021 Prediction: Escalating GlobalTransportation And Logistics Costs Require New Thinking.
Labor Tensions on Rise Across GlobalTransportation Networks. Added Manufacturing Disruption in China. The aircraft manufacturer submitted an updated plan to the FAA in April that outlined a process for each and every aircraft to be inspected from nose to tail. Supply Chain Driven Inflation Moderates in July.
In our prior published Supply Chain Matters commentary, we reviewed and provided some added insights on July’s globalmanufacturing PMI indices which are pointing to declining global supply chain production momentum. A July edition provided two reports that responded to the question- Are Global Supply Chains Recovering ?
Visibility is fundamental to efficient procurement, especially if supplier relationships span design, manufacturing, and distribution. Transportation and Logistics. Increasingly global, transportation and storage can account for more than 30% of production costs. Sourcing and supplier performance.
As we noted in our specific 2023 prediction focused on the globaltransportation industry sector , entering 2023, industry perspectives were on the ability to be able to maintain higher rates by basis of multi-year signed contracts executed at the height of shipping rates.
Pfizer drug manufacturing facility. While disclosure laws prevent the FDA from providing a complete list of products made at the facility, there is redundancy in the supply chain due to other manufacturers. Supply Chain Matters provides added information and perspectives related to last week’s natural disaster involving a U.S.
In the majority of today’s cold-chain operations, data from condition monitoring is either nonexistent or requires hours or days to procure – making it inactionable.
Reportedly McCarthy’s goal is to transform the company “ primarily into a subscription-based company rather than an equipment manufacturer.” based manufacturing strategy, with a decision to source manufacturing at a CMS provider located in Taiwan. That charge has now resulted in an $800 million restructuring plan.
After a tumultuous two years of pandemic-driven supply and globaltransportation disruptions, the stakes are obviously high that both parties can reach a timely resolution to this period of contract renewal. As The Wall Street Journal noted in its reporting: “ The risks have seldom been as high as they are this year.”.
Previous global materials sourcing and just-in-time driven inventory management policies were laid bear with the realization that supply risk was a more problematic and business critical dimension. He later indicated to media sources that such trends would have an impact on global supply chains. For those businesses located in the U.S.,
Robinson which recently dismissed its CEO , had announced a reduction of upwards of 600 employees in November of last year because of declining volumes across globaltransportation segments. Clark will take the sole CEO role for Flexport on March 1, while founder Peterson will assume the Chairperson role. Freight broker C.H.
The notions of an unanticipated global-wide pandemic, unprecedented disruptions in supplier lead times, globaltransportation, and the burden of a sevenfold increase in ocean container shipping rates have tested prior product business strategies and supply chain practices.
Added Insights and Perspectives All of these acknowledgements on continued contraction in globaltransportation and logistics are obviously demand and supply resource related and provide ongoing implications.
He a sought-after author, having written both best-selling books and timely pieces in Industry Week Manufacturing Network and Supply Chain Management Group. His works remain expansive—from procurement through reverse logistics and even facilities management for the supply chain itself. . Steve Banker. and abroad. John Monarch.
In our recent Supply Chain Matters highlights of August PMI production and supply chain activity reporting , we observed reinforcement that global production levels are declining at a more accelerated rate and could conceivably reach contraction levels by the end of this year.
Cost Saving Opportunities Diminishing As we have provided in our market advisories and annual predictions, entering 2024 many businesses mandated that added cost savings were required and one of the primary target areas was going to be high globaltransportation and related logistics costs.
There is little doubt that retail industry sales and operations teams have been continually challenged these past two plus years, not to mention supply chain management and procurement teams. More advanced equates to a more insightful outside-in analysis of product demand, supply, globaltransportation or economic trending data.
Logistics professionals needs to shift from a tactical focus on the disparate activities of order, warehouse and transportation management to a more strategic perspective that considers the performance of the holistic supply chain. More Than Ever, Acting Sustainably Makes Good Business Sense. And with good reason.
Case in point: A small retailer in Seattle, Washington, wanted to purchase three pallets of product from a mid-sized manufacturer in Paris, France. Per the rule, the French manufacturer (seller) assumed the costs and risks through export clearance and onto the pre-carriage collecting vehicle. For example: A manufacturer in the U.S.
The reported September data provides added reinforcement of a globalmanufacturing slowdown occurring at the end of Q3-2024. Indices of new orders, production output and manufacturing employment have reportedly collectively declined while business optimism has reportedly fallen to a near two year low point.
Supply Chain Matters provides our monthly highlights commentary and perspectives on published monthly globalmanufacturing PMI and supply chain activity indices. Now, with September and full Q3 reporting available, globalmanufacturing activity has officially fallen below the 50.0 Global Wide Production Activity.
In their 2021 State of Supply Chain Execution Report, as mentioned in part 1, Blue Yonder and Reuters Events found that 63% of retailers and manufacturers have been affected by the availability of labor over the past year. Continued labor shortage and lack of legislation are leading to overworked labor and high turnover.
Announced Acquisitions Aptean Acquires Principal Logistics Technologies Manufacturing and distribution industry specific technology provider Aptean has announced the acquisition of Principal Logistics Technologies ( PLT ), a provider of purpose built warehouse management and supply chain optimization software technology.
The most significant news in globaltransportation and logistics circles late last week and this week are U.S. Somewhat familiar in these events from past history, both the National Retail Federation and the National Association of Manufacturers have asked the Biden Administration to push the parties toward a timely resolution.
The Supply Chain Matters blog highlights reports of a cyber-attack incident impacting a supplier to Toyota Motor and resulting in a one-day suspension of the automakers manufacturing operations across Japan.
Before we get into blockchain’s potential entry points into the supply chain ecosystem, let’s take a look at the two current trends in SCM *(Supply Chain Management): Dynamism SCM has evolved to become a huge, global ecosystem. Multiple manufacturers, multiple relationships, multiple distribution models, multiple contracts.
In this Supply Chain Matters posting, we shared with readers the response from business procurement teams in addressing the ongoing disruption challenges. In the meantime, provide your comments as to the most meaningful industry and global supply chain developments that impacted your organization in 2021.
There is a sigh of relief among globaltransportation and logistics teams on the news that the labor union representing U.S. Trump Administration will lead to added assessments and/or tactical changes of existing global, nearshored or domestic components and product sourcing strategies for U.S. or other global companies.
The latest data regarding October reinforces that global and regional manufacturing levels remain subdued, similar to this condition during all of the Q3 period. GlobalManufacturing Output Levels Global-wide manufacturing levels as reported by the composite index produced by J.P. reported for September.
In his first week in office, President Biden signed Executive Order 14005, Ensuring the Future is Made in America by All of America’s Workers, launching a whole-of-government initiative to strengthen the use of federal procurement to support American manufacturing.”[1] Procurement must also be considered.
The second aspect of this movement are media reports indicating that Apple has informed its major contract manufacturers that is wants to boost product sourcing outside of China , preferably India or Vietnam. These concerns involve not only manufacturing and supply networks but also technology, real estate and private equity investments.
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