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Global Supply Chain Volatility Continues to Moderate But Not Inventory and Warehousing Costs

Supply Chain Matters

The takeaway for September was that global manufacturing activity officially fall below the 50.0 According to the September report , growth is increasing for inventory levels, inventory and warehousing costs. In a prior Supply Chain Matters posting, we highlighted both September and Q3-2022 global and regional PMI indices.

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The Forecasting Accuracy Bugaboo

Logistics Viewpoints

Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. Increasingly, forecasts are being improved by leveraging outside data sources rather than merely relying on a company’s internal historical shipment data.

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June 2023 US Logistics Managers Index Drops to a Revised Low

Supply Chain Matters

Consequently, the warehousing capacity metric increased a reported 6.8 Further, the added evidence of increased warehouse capacity levels will have an effect on previously rather high levels of warehouse contracting and leasing rates. Logistics Managers Index (LMI) that again dropped to an all-time low for June 2023.

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Driver Shortage, Driverless Vehicles, and Other Supply Chain Curiosities

Logistics Viewpoints

Currently, most driverless opportunities are limited to secure private zones or closed environments, such as warehouses, campus environments or last mile runs from depot to front door. There will still be a workforce needed to maintain those driverless vehicles or costs associated with maintenance done by the manufacturer or a 3rd party.

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Hitendra Chaturvedi’s Reality Check

Resilinc

There are a lot of hard-headed realists in the procurement and supply chain profession. One of those voices is Hitendra Chaturvedi, professor of practice in supply chain management at Arizona State University’s W. Resilinc: What’s the current status of reshoring manufacturing? Carey School of Business. That’s good news.

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U.S. Freight Rates Reach Six Year Low Milestone

Supply Chain Matters

Panelists reportedly pointed to a more pessimistic outlook for transportation utilization for the remainder of this year From our lens, the picture of the report is that not only is an overall contraction of freight demand, but continued high inventory and warehouse capacity utilization is leading to increased inventory storage costs.

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The Impact of the Coronavirus Crisis on Reverse Logistics

Enterra Insights

Carey School of Business at Arizona State University, writes, “The coronavirus has disrupted U.S. ”[1] He adds, “Dependence on China for their manufacturing has put small and midsize businesses in jeopardy. .” Consumers are expected to continue purchasing more online goods even after the pandemic ends.