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Reducing Supply Chain Costs

Logistics Bureau

The Key Supply Chain Challenge of Cost Reduction. Supply chain costs often represent a considerable percentage of the sales price of a good or service. If net profit on sales is 5%, for example, a reduction in supply chain costs from 9% to 4% (or from 12% to 7%) will double net profits. And What Should It Cost You?

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July 2022 Global Manufacturing Indices Indicating Declining Momentum

Supply Chain Matters

Commenting on the July report, Chris Williamson, Chief Business Economist at S&P Global indicated in-part: “ With the exception of pandemic lockdown periods, July saw US manufacturers report the toughest business conditions since 2009. The July 2022 Manufacturing ISM© Report on Business reported the lowest PMI value since June 2020.

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Three Lies and a Truth

Supply Chain Shaman

Here is the list: Supply chain technology implementations have reduced inventory. Here they are: The Lie of Inventory Reduction. Repeatedly, I heard that supply chain applications have saved costs, reduced inventory and improved customer service. When working capital has been reduced, it is usually a story of reducing payables.

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Disruption in China Ripples Across Global Supply Chains in April 2022

Supply Chain Matters

Reportedly, global output fell across consumer, intermediate and investment goods sectors with inbound price inflation equaling record highs. as factories reduced or halted production as a result of local Covid-19 restrictions of population movement. China’s Specific Impact. in April, from the value of 49.5

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Global Production Activity Levels Unchanged In May But Provide Added Warning Signs

Supply Chain Matters

On a positive note, average purchase prices reportedly fell for the first time in three years while supplier lead times “ shortened to the greatest extent since April 2019, amid reports of improved material availability and lessor supply chain pressure.” That could signal even more added inventory exposures. compared to a value of 49.2

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CSCMP Europe Conference

Supply Chain Movement

Pier Luigi Sigismondi joined Unilever and its Executive Board (UEx) in September 2009. As chief supply chain officer, he heads a global operation consisting of 270 factories delivering €23bn of cost of goods sold. In 2002, he joined Nestlé SA as vice president of corporate operations strategies based in Switzerland.

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VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. We eliminate the lower 1/3 of companies for the period from consideration. Price to Tangible Book Value. Companies passing these two tests are then analyzed against the performance factors for 2009-2015: Growth.