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In March 2023, the Global Supply Chain Pressure Index fell to the lowest level since November 2008. As consumer spending fell, the days of escalating ocean freight and extreme shipping variability eased this year. For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack.
Increased Shipping Costs, Delays, and Transportation Issues. Dealing with the Shipping Container Crisis. As some component lead times push into 2023, the shortage is expected to last 24 months before it recedes – similar to the chip shortage of 2008-2009. Increased Shipping Costs, Delays, and Transportation Issues.
Container ships are the backbone of world trade. According to Statista, the world’s merchant container ship fleet grew from 11 million metric tons (mt) of deadweight tonnage (a measure of a vessel’s weight-carrying capacity) to 275 million mt in 2020—a 2500% increase.
The supply chain is vertically integrated and global shipping almost 2 million units daily. The journey began with a one size fits all approach in 2008, and the policies evolved over the course of the last seven years. Orbit Chart for SanDisk for 2006-2014. This is a story of a supply chain turnaround. Does it work?
will face shortages in trucking resources again , predominatly a trucker shortage, in the near future due to an array of developments that may cause shippers to find loads left on the ground, shipping costs rapidly escalating, and shrinking profit margins that stun stakeholders. 2009 was an exception due to the 2008–2009 recession.)
General warehouse industry statistics Warehousing costs & revenue statistics Warehouse efficiency statistics Labor statistics in the warehousing industry Automation adoption in the warehousing industry Warehouse performance metrics Warehouse automation stats: General warehouse industry statistics 1. in Q1 2017, the lowest since 2008.”
Direct to consumer online shop launched with fully functioning billing, payment, shipping capabilities. Manufacturers that are used to shipping pallets and cartons to retailers will need to be prepared for the world of shipping eaches to consumers and do so economically. The site was launched in eight weeks.
However, in 2008 when the business grew +20%, inventories declined substantially, and part of his team won a Syngenta internal award, it became clear. In 2008 the market was ballistic. We outsource about 80% of the primary ingredients of our crop protection business, and pack it in finishing plants and ship to warehouses.
While reliable service and low prices are still important, these metrics have become prerequisites for commercial success. One reason is the increased focus on cost control in the aftermath of the financial meltdown of 2008. “We “When I started customers cared about price and service,” said Wiehoff.
The volume of product damage occurring in between manufacturing and retail is substantial - a 2008 study by Deloitte estimated “unsaleable” product cost manufacturers $15 billion annually or 1-2% of gross sales. But that has come at a hidden cost which may obviate all the benefits and is tough to overcome. Among the challenges: .
The ships now have to reduce their Sulphur emission by over 80% – 85% by switching to Lower Sulphur Fuel. Due to the high level of pollutants in the exhaust of the bunker currently used to power some 60,000+ ships globally, the IMO is going to implement a new regulation regarding these fuels on January 1, 2020.
The volume of product damage occurring in between manufacturing and retail is substantial - a 2008 study by Deloitte estimated “unsaleable” product cost manufacturers $15 billion annually or 1-2% of gross sales. But that has come at a hidden cost which may obviate all the benefits and is tough to overcome.
But to make their strongest case, SCRM advocates need to focus on one key metric: return on investment. It’s important to frame the program in strategic terms and to ensure that decision-makers understand the linkages between the tactical objectives of the SCRM and key metrics such as revenue, earnings, brand, and shareholder value.
In the fall of 2008 I attended a major consumer packaged goods company’s global customer team meeting. Shipping Standards. Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Reflections. My insights on the topic are now a decade old.
The fundamental challenge in shipping for supply chain managers is the requirement to wait until all parts are present before shipping the product. Managers must tie their efforts to mitigate risk with metrics that will result in the long-term support of higher management. Poor Framework for Accountability.
This year’s survey showed the growing importance of labor-related metrics in assessing DC performance. Trend One: Labor Metrics Dominate . Every year the WERC report lists the top 12 metrics used by DC and warehouse managers and tracks how those rankings change from year to year. Overtime hours to total hours worked.
In 2008, Dr. Raymond Panko published a paper detailing examples of human error in data entry. One solution is to turn to big shipping data. Most shippers have metrics to monitor the standard Key Performance Indicators (KPIs) – spend, volumes, cost/shipment, cost/kg, cost/mile, etc. Gain Clarity into Shipping Data.
state authorities to collect sales taxes into an opportunity to deploy same-day shipping capabilities in the not too distant future, allowing consumers the same convenience and gratification that they would get by purchasing goods from a physical store. December 2008. November 2008. October 2008. September 2008.
To survive the increasing customer demands you need shorter lead times and faster shipping and delivery times. It will also track your goods right from the moment an order is received, its journey through the supply chain until it leaves the warehouse for shipping. Make it specific, not general; practical, not conceptual.
A further benefit of integration of these many systems is to allow organizations to effectively report on their sustainability metrics. Transportation industry can have a close eye on resource consumption, including the fuel burned by the vehicle or the electricity and water used by passengers in aircrafts, trains, ships and coaches.
One popular metric – a country’s logistics costs as a percentage of GDP – has China at 18% and the US at only 8.5%. It’s Mind-Bogglingly Cheap to Ship To China. 2015 was the first year since 2008 that growth of Black Friday and Cyber Monday online sales dipped into single-digit growth.
In 2008-2009, nine died and hundreds became ill. The PCA Corporation lost their case in the court of public opinion in 2008, but the federal conviction is seven years later. In 2008, the company manufactured 2.5% The food recall is the largest in US history. The sentence is groundbreaking. Was it profits before safety?
This bold initiative, which goes into effect on January 1, 2020, will help reduce the environmental impact of the international shipping industry. . As we look forward to the new year, it’s important to understand why these new regulations are taking place and how IMO 2020 will impact the global shipping market. That’s 8.5
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