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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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Disruption in China Ripples Across Global Supply Chains in April 2022

Supply Chain Matters

They collectively provide evidence that the prior disruptions still occurring among industry supply chains, compounded by the latest manufacturing, logistics and transportation disruptions occurring in China, will have a longer economic and service level effect in the coming months. Global Manufacturing Output Levels Declined.

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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