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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 Indicated in the report summary was: “ The sustained growth in the logistics industry continues to be fueled by high levels of inventory and the associated levels of cost and utilization associated with holding them. for September.

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A Key to Manufacturing and Warehousing Success in Arizona

AB&R

A Key to Manufacturing and Warehousing Success in Arizona The Phoenix metropolitan area and surrounding cities are booming with new warehouses, distribution centers, and manufacturing plants right now. Conveniently located by Phoenix Sky Harbor airport, we provide prompt support to Arizona companies.

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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

According to the June report summary , the primary driver of the latest decline was the inventory metric, which reportedly contracted 6.5 Consequently, the warehousing capacity metric increased a reported 6.8 Logistics Managers Index (LMI) that again dropped to an all-time low for June 2023. Further, the current LMI value has slid 21.5

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November U.S. Logistics Manager’s Index- Noteworthy Trending

Supply Chain Matters

The report specifically indicates : “ November’s dip was largely triggered by a decline in Inventory Levels (-9.1) which is attributable to Q4 holiday sales and the subsequent dips in Warehousing Capacity (+3.6) and slowdown in Warehousing Utilization (-14.0) and Transportation Capacity (+5.2)

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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. As demand forecasting accuracy increases, and the standard deviation associated with the forecast decreases, the need to hold “just in case” inventory also goes down.

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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. ” warehouse workers in June of 2022. There were 1.96