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

Supply Chain Matters

The Logistics Managers Index ReportĀ® , compiled by researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University and the University of Nevada Reno , and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) , reported a September value of 61.4,

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This Week in Logistics News (May 21 ā€“ 27)

Logistics Viewpoints

Amazon Aims to Sublet, End Warehouse Leases as Online Sales Cool. households across six states ā€“ Arizona, Arkansas, Florida, Texas, Utah and Virginia. The excess capacity includes warehouses in New York, New Jersey, Southern California and Atlanta, according to an article in Bloomberg.com that referenced anonymous sources.

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Embracing the Supply Chain as A Complex Non-linear System

Supply Chain Shaman

In the past five years, companies have 5-10X the number of AGVs in their warehouses, but 40-60% more planners in corporate. We have successfully reduced warehouse labor, but planning is more labor intensive today, and less effective. The supply chain has two important buffers–inventory and capacity. Performance Declines.

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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 percentage points In May, noted as an indication that shippers are consuming even less of available capacity than the month earlier. Surge or seasonal capacity is usually pegged to spot rates based on available capacity.

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November U.S. Logistics Managerā€™s Index- Noteworthy Trending

Supply Chain Matters

which is attributable to Q4 holiday sales and the subsequent dips in Warehousing Capacity (+3.6) and Transportation Capacity (+5.2) and slowdown in Warehousing Utilization (-14.0) The stated implication is a potential return to higher logistics costs now concentrated in West Coast logistics and warehousing areas.

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Evidence Mounts of Non Peak Holiday Season in Transportation and Logistics

Supply Chain Matters

While 209,000 workers were added in June, 14,000 freight and parcel carriers were cut and 6,900 warehousing and storage jobs were lost. In the past we would expect to see transportation and warehousing ramping up hiring in late summer ahead of peak season. ā€ warehouse workers in June of 2022. There were 1.96

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Supply Chain Volatility Indexes Moderate in February

Supply Chain Matters

A further significant change noted was Warehousing Capacity moving back into expansion levels by 10.2 percentage points in February, a sign of prior capacity constraints. That stated, Warehousing Prices and Inventory Costs remain expanding at accelerated rates and the authors caution: ā€œ.it The chairperson of the U.S.