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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 According to the September report , growth is increasing for inventory levels, inventory and warehousing costs. In a prior Supply Chain Matters posting, we highlighted both September and Q3-2022 global and regional PMI indices.

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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 Further, the added evidence of increased warehouse capacity levels will have an effect on previously rather high levels of warehouse contracting and leasing rates. Logistics Managers Index (LMI) that again dropped to an all-time low for June 2023.

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U.S. Freight Rates Reach Six Year Low Milestone

Supply Chain Matters

Panelists reportedly pointed to a more pessimistic outlook for transportation utilization for the remainder of this year From our lens, the picture of the report is that not only is an overall contraction of freight demand, but continued high inventory and warehouse capacity utilization is leading to increased inventory storage costs.

Freight 52
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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

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Hitendra Chaturvedi’s Reality Check

Resilinc

There are a lot of hard-headed realists in the procurement and supply chain profession. One of those voices is Hitendra Chaturvedi, professor of practice in supply chain management at Arizona State University’s W. Resilinc: What’s the current status of reshoring manufacturing? Carey School of Business. That’s good news.

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Two Indices of Supply Chain Activity Noting Supply Chain Volatility Trending

Supply Chain Matters

The authors specifically make mention of geopolitics along with the ongoing effects of the pandemic impacting many manufacturing regions in China. Also reported was less change in Inventory and Warehousing metrics as costs continue to grow and capacity remains tight. Warehouse inventory levels are noted as remaining quite high.

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U.S. Logistics Manager’s Index Drops to an All Time Low in May

Supply Chain Matters

Other insights pointed out in the May LMI report are that the current rate of contraction is strongest in upstream firms, namely manufacturers, wholesalers and distributors, compared to their downstream retail industry counterparts. Supply Chain Matters highlights this week’s release of the U.S. Further reported was that volumes of U.S.